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Proceedings of 112th SLBC meeting

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Date- 06.02.08 …

Date- 06.02.08

Location - Bhubaneswar (GM correction)

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  • 1. 14 PROCEEDINGS OF 112TH SLBC MEETING HELD ON 06.02.2008 AT BHUBANESWAR The 112th SLBC meeting of Orissa was held on 06.02.2008 at Bhubaneswar under the Chairmanship of Shri Brij Mohan Mittal, Executive Director, UCO Bank and Chairman, SLBC. Among others it was attended by Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa; Shri A. K. Tripathy, Chief Secretary, Govt. of Orissa; Shri G. Jagan Mohan Rao, Regional Director, Reserve Bank of India, Bhubaneswar; Shri A. K. Mukhopadhyay, General Manager, NABARD, Regional Office, Bhubaneswar; Shri M. N. Rao, Chief General Manager, State Bank of India, Local Head Office, Bhubaneswar; Shri V. K. Upadhyay, General Manager, Head Office, UCO Bank. The list of participants is annexed. Shri R. K. Mukherjee, General Manager, Orissa and Convenor, SLBC welcomed Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa; Shri B. M. Mittal, Executive Director, UCO Bank and Chairman, SLBC, Orissa; Shri A. K. Tripathy, Chief Secretary, Govt. of Orissa; Shri G. Jagan Mohan Rao, Regional Director , RBI and other dignitaries in the dais, participants from Govt. Departments, Agencies and Banks. In his welcome speech, he introduced Shri Mittal, Executive Director, UCO Bank-cum-Chairman, SLBC who is a brilliant academician, had joined Punjab National Bank and had been holding key responsibilities in branches, Central Staff College, Zonal Offices and Head Office of PNB and has knowledge and experience in all gamut's of banking. He told that Shri Mittal is presently Chairman of IBA Committee on Basel II implementation and Risk Management and member of IBA's Standing Committee on Basel II implementation. He has been a member of the steering committee of RBI constituted for draft guidelines for implementation of Based II accord on Risk Management practices in banks in India. While welcoming, he stressed on the bankers to achieve the target under SGSY, financing to Women Self Help Groups, DRI advance and early disposal of pending applications under pisciculture and other schemes. He concluded his speech by requesting the banks to give top priority to raising the standard of living of the people who are at the bottom of the pyramid by providing them timely and adequate finance.
  • 2. 14 HIGHLIGHTS OF KEY NOTE ADDRESS BY SHRI BRIJ MOHAN MITTAL, EXECUTIVE DIRECTOR, UCO BANK & CHAIRMAN, SLBC. The Executive Director, UCO Bank welcomed Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa and other dignitaries and participants to the 112th SLBC meeting. At the outset he wished everybody present in the meeting and their family a "HAPPY & PROSPEROUS NEW YEAR". He expressed that India has been experiencing unprecedented economic growth and has become an emerging economic power in the world and the economy is in vibrating mode. Highlighting the heritage and culture of Orissa, he told that in spite of favourable geographical and economic climate, the State continued to remain poverty stricken and backward. He expressed that because of effective measures taken by the Govt. of Orissa, the State is making stride in the fields of infrastructure, agriculture, tourism, industry and empowerment of women and highlighted the following aspects :- Agriculture, SME, IT, Govt. sponsored schemes such as PMRY, SGSY and WSHG, financing to SC/ST should be the thrust areas of the SLBC. An entrepreneurship culture can be nurtured by the Banks. The flow of credit to agriculture sector should be enhanced. Modernization of agriculture through mechanization has to be done at faster pace in order to boost Agriculture production. As the State has great potentialities in production of cash crops like cotton, jute, sugarcane, groundnut & oil seeds, Bank should come forward in financing these crops. All eligible crops are to be insured with NAIS. Horticulture & floriculture have got immense scope and potential in the State, pending proposals sponsored by NHB (National Horticulture Board) should be disposed of by the Bank within a specific time frame.
  • 3. 14 There is enough scope for food processing industry in the State and financial institutions, banks should came forward to provide adequate credit support for the industry. Banks have to achieve the target set for 2007-08 which will boost the economy of the State. Credit flow to SC/ST sector should be given priority by the banks. SC/ST population constitutes 38.23% of the total population of the State as per 2001 census. The target set for SGSY scheme should not only be achieved, deficiencies in service in this field are to be redressed on top priority. SJSRY (Swarna Jayanti Sahari Rojgar Yojana) is an urban poverty alleviation program being monitored by Ministry of Urban & Housing, Govt. of India with the Urban & Housing Deptt. of the State. The Banks operating in the State have to implement the scheme sincerely. Banks have to achieve the target set for the PMRY for the programme year 2007-08. Banks have to clear all the pending proposals under REGP (Rural Employment Generation Programme) of KVIC & KVIB. Micro Insurance should be given importance. Banks have to ensure insurance coverage of both life and non-life of SHGs who are from the economically backward strata of the society. The 100% Financial Inclusion in the identified districts will have to be completed within time frame. 100% Financial Inclusion of Cuttack, Puri, Nayagarh, Rayagada and Keonjhar has to be achieved by March 2008. Rest 14 more identified districts should have to achieve 100% Financial Inclusion by October 2008. Banks operating in the State have to provide GCC (General Purpose Credit Card) to all the eligible persons. Last but not the least, he appealed to everybody that poverty alleviation, economic empowerment, sustained growth, development of the society in general and weaker section in particular should be given top priority to boost the economy of the State. He opined that Orissa is one of the States in the county where Govt. departments, banks and other financial institutions and non-government organizations have been working hand in hand for the development of the State and upliftment of the poor people.
  • 4. 14 HIGHLIGHTS OF THE SPEECH OF SHRI P.C. GHADAI, HON'BLE FINANCE MINISTER, GOVT. OF ORISSA. He expressed happiness at the CD ratio of all the Banks in the State which has gone upto 77.91%, however, the CD ratio of the commercial banks. The CD ratio of the commercial bank stood at 72.81% as on 30.09.07 declining from 74.37% as on 31.03.07 and commercial banks should make analysis for decline of CD ratio and take steps for increase in CD ratio. He congratulated the Co-operative Banks for achieving CD ratio of 155.95%. The year 2008 has been declared as year of Irrigation and Govt. of Orissa is focusing on development of Agriculture and adequate funds have been allocated in the budget to improve this sector as the State is basically a farmers' state. In respect of finance to agriculture, RRBs' performance is 78.73% of the target which needs improvement. Achievement of Private sector banks is only 12.55%. The Govt. of Orissa has to re-look and funds may be placed either with Public Sector Banks / Private Sector Banks based upon their performance in various sectors of economy and their involvement in implementation of the Govt. sponsored schemes. The SME sector which provides direct & indirect employment to the unemployed youth/people should be given the highest importance by the banks as well as the Govt. He opined that credit flow to SME sector is not at all encouraging. Banks should come forward and play a proactive role to lend more to the sector. He told that non-availability of timely and adequate credit leads to sickness since beginning and banks should take a note of it. While giving emphasis to the cluster based approach, he told that 22 industrial clusters have been identified by the State Govt. and banks may keep close liaison with the Director of Industries for better coordination and implementation of the flow of credit to SME sector under cluster approach. He stressed upon the Bankers to take advantage of CGTMSE for financing under MICRO, SMALL & MEDIUM ENTERPRISES and Orissa Industrial Policy 2007 is very dynamic, provides conducive atmosphere for the industrial development of the State. Banks have to achieve the target set for Mission Shakti for the year 2007-08. He expressed unhappiness that banks have provided credit linkage to 39622 WSHGs amounting to Rs. 167.99 crores and have achieved only 39% of annual physical target.
  • 5. 14 Regarding DRI advance he expressed that the percentage of DRI advance to total advance by the Commercial Banks as of 30.09.07 was only 0.25% which is far below the National Parameter of 1% of the previous years outstanding advance. Under PMRY, he requested the banks to complete the disbursement as quickly as possible for the programme year 2007-08, Banks have disbursed only 85 cases out of 9218 cases sanctioned which shows a very poor performance. The target set for PMRY for 2007-08 has to be achieved by each Bank. He expressed unhappiness at the performance of SGSY in the State; as against 54356 sponsored cases, only 17068 cases have been sanctioned and 10431 cases have been disbursed. The subsidy credit ratio was only 1.95% as of 30.09.07 and needs to be improved. He expressed that the performance of KCC by Commercial Banks including RRBs, is not upto mark, as during 2007-08 i.e. from 1.4.2007 to 30.09.2007, have provided 132140 out of all Bank as a whole issued 223915 and under issuance to KCC to farmers, the Co-operative Banks have been doing well. All eligible farmers have to be provided with KCC and he advised the Agriculture Deptt., Govt. of Orissa to instruct the VAWs to keep in touch with the Banks, so that it may be possible for the banks to issue KCC to all eligible farmers of the State. He expressed that Financial Inclusion in the State has not been achieved to the desired extent, from 1.4.07 to 30.09.07 the Banks in Orissa have opened only 132245 No Frill Accounts and have issued meagre no i.e. 5809 GCC. To make the State rich he expected more cooperation from everybody including the Banker. He expressed that Banks in Orissa are extending co-operation, so that CD ratio has been considerably increased. Govt. of Orissa is emphasizing and investing a lot of money for infrastructure development, paving the way for mega projects coming up in recent years and there would be diversion of people from primary sector to secondary sector (Agriculture sector to Industry sector), so that our State will be one of the richest States in the country and sought co-operation from all. HIGHLIGHTS OF SPEECH BY SHRI A. K. TRIPATHY, IAS, CHIEF SECRETARY, GOVT. OF ORISSA. About opening of EDP (Entrepreneurship Development Programme) Institute by the Banks, he expressed that although very few Banks have responded, many Banks have yet to open institutes of their own. Govt. of Orissa is prepared to funding the training of the candidates selected under State Employment Programme.
  • 6. 14 He categorically emphasized that let this meeting take a commitment from each bank to take decision when they are going to establish EDC in the districts of their choice. He pointed out that although the Banks have been lending to Agriculture sector why a farmer commits suicide ? Banks have to organize recovery Mela on regular basis as was happening in the past and defaulters have to be suggested how best they can repay. The defaulters should have been approached by the Bank personnel and reasons on non-payment of loans have to be taken care of by the Banks. Banks have to keep in touch with the potential borrowers, Constant and continuous follow up will help the borrowers in not becoming defaulters. He told that in financing to SHGs, the role of bankers have not been encouraging and the credit linkages have not been promising. Govt. decisions to double the Handicraft Artisans in a period of 3 years from now vis a vis Handicraft Package of the Govt. of Orissa will boost the production of Handicraft Products. Banks have to provide credit to this sector as per their requirement and Handloom weavers of the State will also be doubled in 3 years from now. Banks have to increase the flow of credit to Handloom & Handicraft sector. Although Orissa is an important fish producing State, the fish production of the State is below Rs. 50 crores. Thousands of reservoirs/ponds have been developed, reservoir policy of the Govt. has been formulated. He expressed that in spite of steps taken by the Govt. to enhance the fish production in the State, the progress has not been satisfactory. Banks have to take proactive role in financing to pisciculture. Banks have to take decisions to double the SCC (Swarojgar Credit Cards) in 3 years. He advised the Finance Deptt. to issue a circular to all the corporations listing the good performance of those Banks in implementing the Govt. sponsored scheme and keep these Govt. funds with them in spite of difference in interest of 0.5% to 1%. Deposits maturing after six months may be withdrawn from non-performing Banks and keep in performing Banks. The performance under NHB is not upto the mark. Banks have to take a note of it and pending application sponsored by NHB has to be disposed of. Socially, Mentally and Physically challenged people are to be provided with finance for their socio economic rehabilitation.
  • 7. 14 It has been decided to have a poultry hatchery in each Block. Banks have to finance those hatchery unit & its promotion to the entrepreneurs desires for setting up the units under priority sector lending on priority. At the end, he told that in the changing scenario when the participatory development approach is the best approach for development, Banks have to start grass root financial intelligentia & development information wings to take care of the performance of their branches in this regard. HIGHLIGHTS OF SPEECH OF SHRI G. JAGAN MOHAN RAO, REGIONAL DIRECTOR, RESERVE BANK OF INDIA. While expressing that the credit portfolio of all Banks in the State as of 30.09.07 amounts to Rs. 24000 crores, he remarked that taking into account the potential available in the State, the State requires credit to the tune of around Rs. 100000 lakh crores to sustain GDP growth of 8.5%. Teams consisting of 2 to 3 survey officers of banks have to move around the districts and find out new activities and new method of lending so that credit absorption in the State takes place. In the 111th SLBC meeting held on 14.11.07, in presence of Shri Pawan Kumar Bansal, Hon'ble Minister of State, Finance (E&FS), Govt. of India, banks had promised to complete 100% Financial Inclusion within a time frame. However, 100% Financial Inclusion has not been achieved even in the originally identified 5 districts namely Cuttack, Puri, Nayagarh, Rayagada and Keonjhar which was scheduled to be completed by 31.12.2007. Bankers have to take all necessary steps to complete 100% Financial Inclusion of identified district in time. In implementation of SGSY and PMRY, guidelines are to be followed scrupulously. In some cases it is reported that in financing to SGSY, the bankers are disbursing only the subsidy amount, the entire purpose of poverty alleviation is failed right in the beginning. He told that financing under target approach in implementation of govt. sponsored scheme, the recovery will be low and the schemes are not implemented in the true sense. Bank's assistance to farmers should have bearing on crop production in the State or else, all those accounts will be written off because of non repayment of dues by the farmers. Bank should have priority in financing SME sector which contributes to the growth in the economy of the State.
  • 8. 14 He opined that funds of the Govt. may be deposited in any Bank as per its choice, as a customer of the Bank. Private sector Banks operating in the State should submit the correct data to SLBC so that true picture of credit given by them can be reflected. The credit plan of the state should be made with bottom line approach; all the planning is supposed to be aggregated from Village level, Block level & District level based upon the potentialities available and not on the basis of previous years achievement so that credit flow to the various sectors of economy can be increased as happening in Karnataka, Andhrapradesh, Tamilnadu & Punjab. A committee has been constituted by RBI as a nodal part for increasing credit flow to SME sector. Credit absorption capacity of SME sector is very high, Bank should lend to this sector for their own interest for generating more profit. To get rid of the problems of the entrepreneurs availaling credit from informal sector at exorbitant rate of interest, Banks should come forward to lend to this sector. Financing to SME sector under cluster approach is not gaining momentum because of non availability of the infrastructure required for the clusters. He requested Finance Minister to spare some time and visit the clusters alongwith the Controlling Heads of the Bank and Secretary, Industry. If suitable proposal is available, then it may be sanctioned under single window approach. He expressed that Hon'ble Finance Minister has agreed to consider the proposal of recapitalization of RRBs in Orissa. The news item published in some newspaper regarding closure of RRBs does not have base, hence he requested press people not to publish any item before getting in touch with the Chairmen of RRB or with RBI. The presentation of cheques in the Clearing House may be streamlined, the difficulties faced by the urban Co-operative Banks in Bhubaneswar should not be repeated. The unusual holding of SLBC meeting of the September quarter i.e. as of 30.09.07 in the month of February 2008 and reviewing the figure of September does not have any meaning. The SLBC meeting should be held in time on quarterly basis. The sharing of quarterly performance data to SLBC in the age of computerization is not a difficult task. He advised the Controlling Heads of banks take necessary steps to submit the SLBC data in time so that meeting can be held at regular intervals and in time.
  • 9. 14 He drew the attention of Shri Mittal, Executive Director, UCO Bank to the effect that officers posted in SLBC should move around and collect the informations from LDMs/Banks for holding meeting in time. Lastly, he opined that in each district there should be credit counselling centre for proper counselling to the Farmers, Artisans, Professionals and other members of the society about the details of credit facilities available and management of credit, repayment etc. Agenda Item No. - 1 The Proceedings of the 111th SLBC meeting held on 14.11.2007 at Bhubaneswar is taken as confirmed. Agenda Item No. - 2 (01) The performance of Banks in financing to SME sector requires improvement. Banks operating in the State & Govt. line Departments should take all possible steps for increasing credit flow to this sector. Action : Banks / Industries Deptt., Govt. of Orissa / Directorate of Textiles and Handloom. 1. The Banks should finance more & more under MSE sector and take coverage under Credit Guarantee Fund Trust Scheme for MICRO & SMALL ENTERPRISES which help the entrepreneurs to avail collateral free loan upto Rs. 50 lacs which includes REGP (Rural Employment Generation Programme). It was observed that average loan size covered under the scheme is Rs. 1.53 lacs which is less than the all India average of Rs. 2.76 lacs. Action : Banks / KVIB / KVIC / SIDBI (03) Financial Inclusion : (i) The 100% Financial Inclusion of five districts i.e. Cuttack, Puri, Rayagada, Nayagarh & Keonjhar identified in the month of April 2007 & rest fourteen districts i.e. Kendrapara, Koraput, Kandhamal, Kalahandi, Nuapara, Bargarh, Jharsuguda, Jagatsinghpur, Bhadrak, Balasore, Angul, Dhenkanal, Mayurbhanj & Gajapati must be completed by March 2008 and October 2008 respectively. The Govt. of Orissa is kindly requested to provide all support for completion of the Financial Inclusion of the State. Action : Banks / Govt. line Deptt. (04) As regards establishing Entrepreneurship Development Programme (EDP) training Institutes, United Bank of India, Bank of India and Punjab National Bank are in the process of setting up EDP centres and other Banks should come forward to open Institutes at the earliest without further delay. In each
  • 10. 14 district one EDP will have to be established. The action point in respect of above has to be sent by the Banks to SLBC before the SLBC meeting. Action : Banks / Industries Deptt., Govt. of Orissa. (05) As stated by Revenue Deptt., Govt. of Orissa, functioning of Special Certificate Courts at Cuttack, Bhubaneswar, Berhampur, Sambalpur & Rourkela is not yet streamlined. Due to shortage of OAS Officers, their services are not exclusively utilized for handling of certificate cases. However, the situation has improved and all those five courts will be properly functioning very soon. In these five districts certificate cases filed before the GM, DIC may be transferred to office of the Special Certificate Court for early disposal of the certificate cases. Action : GM, DIC / Revenue Deptt., Govt. of Orissa. (06) Regarding Implementation of the UP pattern of Recovery Act, Revenue Deptt. has to submit the report to the Govt. Actions : Revenue Deptt., Govt. of Orissa. (07) As regards financing two wheelers to "GOMITRA" it was decided that viability of the scheme is to be approved by the Small Committee consisting of representative of NABARD, UCO Bank, State Bank of India, Bank of India and Animal Husbandry Deptt. Animal Husbandry Deptt., Govt. of Orissa is requested to place the captioned scheme to SLBC for doing the needful. Action : NABARD, UCO Bank, SBI, Bank of India & Animal Husbandry Deptt., Govt. of Orissa. (08) District wise quarterly data in financing WSHGs are to be submitted from December 2007 onwards with joint signatures of LDM, DSWO & DDM or AGM, NABARD to Misson Shakti Department, Govt. of Orissa as well as to SLBC. The minutes of the Small Committee meeting on financing WSHGs held on 21.01.08 was ratified by SLBC. Action : Banks / LDM / Govt. line Deptt. (09) Under State Employment Missions, Banks have to achieve the targets allotted to them for 2007-08 to provide self employment to unemployed people in the State. Action : Banks / LDM / Govt. line Deptt. (10) As a matter of fact, improvement has been noticed in financing Handloom sector. Banks have to finance 73 clusters identified by the Govt. of Orissa in a big way giving maximum emphasis on individual finance to the individual weaver. Special Agenda for financing Handloom sector may be kept in coming SLBC for enhancing credit flow to the sector.
  • 11. 14 The minutes of sub-committee meeting for enhancing credit flow to Handloom & Handicraft sector was ratified in SLBC meeting. Action : Banks & Govt. line Department. (11) Regarding sick MSME revival plan, special package has been announced in IPR-2007. District level committee may identify the sick industry which have potentials for revival and refer to SLIIC for the revival package of MSME. In the package, sick MSME is entitled to all physical incentives which the new industrial unit is entitled. The captioned sick MSME can get capital investment subsidy for any expansion, modernization or diversification. There is a provision of interest subsidy of 5%, vat reimbursement upto 75% for five years, electricity exemptions for five years and other benefit also. After the survey of sick MSME jointly by DIC and OSFC, identified unit which has potential for revival may be sent to SLIIC for recommendation to the Financial Institutions for finance. The Banks/Financial Institutions should follow the recommendation scrupulously. MSME Orissa Development Consortium, an autonomous body may be formed with equity participation of Govt. of Orissa, Industry Deptt., SBI, UCO Bank, Bank of India, Andhra Bank, SIDBI, SMERA etc. Action : Banks / Industries Deptt., SIDBI, APICOL. (12) The State Level Monitoring Committee was requested to look into the successful implementation of SJSRY in the State. Bankers are requested to dispose of all the pending applications sponsored to various semi-urban & urban branches of the Bank. Actions : Banks, Urban & Housing Deptt., Govt. of Orissa. Agenda Item No. - 3 The details of MSME (Micro Small & Medium Enterprises) has been given in Agenda Books. Accordingly, Bankers and all concerned have to take steps for financing more & more to this sector which has very important role to play in the economy of the State. Bankers have to finance more & more number of MSME units under cluster approach and outside the cluster. Necessary infrastructure may be built up in this regard by the Govt. line Department which will help both entrepreneurs & Bankers. Rice Mill clusters at Kalahandi needs technology upgradation and capacity building. Bankers operating in the Kalahandi district are requested to provide credit for the purpose.
  • 12. 14 Basing upon the Big Industries/MEGA PROJECT coming up in the State, necessary ancillary industries/small industries may be identified and Banks may extend credit to those industries. The performance of MSME sector can thus be improved to a desired extent. It was decided that Industry Deptt. should convene a meeting of all the leading Bankers, RBI, NABARD to make strategy and further boost to SME sector in Orissa. Action : Banks / Industries Deptt. Agenda Item No. 4 A. Bankers have agreed to finance Jatropha plantation and Bio-diesel production units subject to the viability of the proposals and to give boost to the production of renewable source of energy. Action : Banks & Govt. Line Department. B. Issue raised by Director of Industries, Orissa. In revised guidelines of PMRY the limit of finance under Industry activity has been increased to 5.00 lakhs. Govt. of India guidelines prescribed achieving 20% of target under Industry Sector. The Controlling Heads of the Bank are requested to impress upon their branches to finance industry sector under PMRY on priority. The Banks have to achieve the target set for PMRY 2007-08 and entire disbursement will have to be completed by March 2008. Action : Banks & Industries Deptt., Govt. of Orissa. C. Issue raised by OSFDC. Target set for Banks for financing SC Self Help Groups, ST Self Help Groups, Self Help Groups for scavengers and 4000 individual scavengers under credit linked schemes have to be achieved by the Banks by 31.03.08. Against the sponsoring of 1129 Groups Banks have financed only 284 Groups which is 25.15% of the total sponsoring. The Controlling Heads of the Bank are requested to take necessary steps for early disposal of applications sponsored from OSCSTDFCC Ltd. for increasing credit flow to SC, ST sector in the State. Action : Banks & OSCSTDFCC Ltd. D. Issue raised by Panchayati Raj Department, Govt. of Orissa. SGSY is a major poverty alleviation programme implemented in the State. Banks should take all possible measure to achieve physical as well as credit mobilisation target. The credit subsidy ratio should be 3:1. There was a irregular disbursement of SGSY loan to Maa Kichakeswari SHG, Sirispal by Baitarani Gramya Bank, Keonjhar which may be rectified at the earliest.
  • 13. 14 As reported by PD, DRDA, Bolangir, Banks operating in the district were showing negative attitude in respect of sanction and disbursement of loan applications of SGSY scheme. The Controlling Heads of Banks which have branches in the district were requested to take a note of it and impress upon their branches in Bolangir district for successful implementation of the SGSY in the district. The State Bank of India, Lead Bank of Malkangiri who is a major partner of development activities was requested for successful implementation of the SGSY in the district. Action : Banks & Govt. line Department. A. Issue /Studies and observation made by NIRD in the area of credit deployment under SGSY and other poverty reduction schemes. Banks are requested to scrupulously follow the suggestions made by NIRD mentioned in Agenda Book (Page No. 39 to 41). Action : Banks & Govt. line department. H. Issue raised by UCO Bank, Convenor, SLBC, Orissa. It was once again decided that Banks have to list out the name of DDOs (Drawing & Disbursing Officers) of various Govt. Deptts. who are not deducting the installments for remitting to the Bank branches for crediting into loan account and names of those DDOs is to be intimated to Finance Deptt., Govt. of Orissa, so that Govt. may take necessary steps in this regard. Action : Banks, Finance Deptt., Govt. of Orissa. I. Under SARFAESI (The Securitization and Reconstruction of Financial Assets and Enforcement of security Interest) Act. 2002, wherever there is possibilities of resistance at the time of taking over physical possession of mortgaged/hypothecated property, Authorized Officer makes an application to DM seeking his help for taking possession of the secured assets. Banks have recovered positive response from most of the districts, however some of the District Magistrates are not extending the necessary help for which Bankers are not able to recover the dues. The appropriate authorities of Govt. of Orissa were requested to urge upon the District Magistrates to extend sincere help to the Bank/Authorized Officer in the recovery efforts. Action : Govt. of Orissa / Banks.
  • 14. 14 J. Issue raised by APICOL The scheme of Small Farmers Agri Business Consortium (SFAC) have to be implemented by Banks & Agriculture Deptt., Govt. of Orissa, APICOL with zest and zeal to increase the crop production of the State. The following projects sponsored to Banks have to be disposed of at the earliest. S. N. Projects sponsored to SFAC Cost Bank 01. Ma Kanaka Bio Fertilizer 80.00 lacs Syndicate Bank, Kalpana Square, Bhubaneswar 02. Onion Processing 200.00 lacs Andhra Bank, Haladi, Titlagarh 03. Sericulture 400.00 lacs SBI, Sonepur Action : Banks, Agriculture Deptt./APICOL. Agenda Item No. - 5 Banking Key Indicator of Orissa as on 30.09.07 The CD Ratio of Public Sector Banks such as Allahabad Bank, Bank of Maharastra, Canara Bank, Central Bank of India, Corporation Bank, Punjab National Bank, Punjab & Sind Bank, State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore, Syndicate Bank, Union Bank of India, United Bank of India and Vijaya Bank and Private Sector Banks such as Federal Bank, Rajasthan Bank Ltd., Vysya Bank, Axis Bank and The South Indian Bank Ltd. has been less than 60% as of 30.09.07 which is a matter of concern for the State. The CD ratio has to be improved by all the Banks. Except Canara Bank, Indian Overseas Bank, Punjab National Bank and Syndicate Bank, none of the Banks have achieved the National Parameter under DRI advance. Rest of the Banks which have not achieved the National Parameter under DRI are advised to achieve the National Parameter of DRI i.e. 1% of total outstanding advance of the previous year. The CD Ratios of the Districts have improved. LDMs Deogarh, Gajapati, Jagatsinghpur, Malkangiri, Nuapada and Sambalpur should take all possible steps to improve their CD ratio. The percentage of PS Credit to total Advance as on 30.09.07 is commendable. Action : Banks mentioned above / all Banks / LDMs of Deogarh, Gajapati, Jagatsinghpur, Malkangiri, Nuapada, Rayagada & Sambalpur. Agenda Item No. - 6
  • 15. 14 Recovery The over all recovery position as on 30.09.07 is very poor. The percentage of recovery of IRDP/SGSY and PMRY as on 30.09.2007 were 41.17 & 19.84% respectively and requires improvement. Govt Deptts. may have joint strategies to improve the performance of recovery for better recycling of funds. The Govt. Machineries were requested to render adequate help and assistance in organising recovery camp to improve the performance of recovery. Bankers expressed concern for the low recovery which will stand as a barrier for credit growth in the State. Action : Banks / Govt. Line Deptt. Agenda Item No. - 7 Review of performance under Annual Credit Plan as on 30.09.07 Under ACP, financing to Allied Sector under agriculture lending have been improved to 90% which is praiseworthy. The performance of the districts like Jagatsinghpur, Nayagarh & Puri needs improvement. The LDMs of the concerned district should take all possible measures to improve the performance of their district and achieve the target for 2007-08. LDMs should take a note that Credit Flow to Agriculture and Allied sector, SSI & SME, SHGs, REGP under KVIB & KVIC are to be enhanced to a considerable extent in their districts. Action : Banks / LDMs and Govt. Line Deptt. Agenda Item No. - 8 Review of performance under Agriculture Credit as on 30.09.2007. Under Agriculture Credit as on 30.09.07, the achievement being 103% for all Banks was satisfactory. It is high time the private sector banks which have not yet started lending under Agriculture Sector, should come forward to lend to Agriculture sector to boost the economy of the state. Action : Private Sector Banks. Agenda Item No. - 9 Review of Performance under PMRY & SGSY It was noticed that sanction under PMRY 2007-08 as of 30.09.07 is 73.74% only. In fact the Bankers were instructed to sanction 120% of the target so as to ensure 100% disbursement against target. Banks should speed up their lending under financing PMRY and ensure 100% disbursement. SGSY Schemes is to be successfully implemented by the Banks. Banks have to achieve the physical as well as credit mobilization target. No applications should be kept pending beyond 15 days at branch level.
  • 16. 14 Action : Banks & Govt. Line Deptt. Agenda Item No. - 10 Progress under various Govt. sponsored programme like SJSRY (Swarna Jayanti Sahari Rojgar Yojana) Banks have to implement the scheme with all sincerity and commitment to uplift the urban poor above the poverty line and target for 2007-08 under SJSRY has to be achieved by each bank operating in the State. Action : All Banks. Agenda Item No. - 11 Progress under Self Help Groups (Mission Shakti) Banks operating in the State assigned with target of financing WSHGs during 2007-08 have to achieve the target and should give highest importance in financing WSHGs for empowerment of Women as our social objectives. Banks should take proactive steps to increase the per SHG credit to Rs. 45000/- as has been decided in the meeting. The Private Sector Banks may be entrusted with financing urban SHGs. The district-wise data will have to be submitted in simplified format to Mission Shakti Deptt. as well as to SLBC on quarterly basis. MFI operating in the State have been financing to WSHGs in large number which are to be monitored. Hence, SIDBI and other Banks financing to MFIs were requested to submit the data of WSHGs financed by MFIs to SLBC & Mission Shakti Deptt. Action : Banks / Govt. Line Deptt./LDMs. Agenda Item No. - 12 The performance of Banks under SC/ST/Scavengers/ITDA and financing under REGP/KVIB/KVIC. a) Banks should lend more and more to SC/ST borrowers so that there should be adequate Credit Flow to SC/ST sector. The SHGs sponsored by OSCSTDFCC Ltd./OSFDC under SC/ST/Scavenger should be financed with utmost sincerity as an objective of increasing credit flow to women as well as to SC/ST sector. Action : Banks / OSCSTDFCC Ltd. b) All the pending applications under KVIB & KVIC are to be disposed of at the earliest. Banks have to follow scrupulously guidelines regarding adjustment of margin money of REGP of KVIB/KVIC. Under KVIC, Banks should achieve the quarterly target which has been circulated.
  • 17. 14 Action : Banks / KVIC / KVIB / Govt. line Deptt. Agenda Item No. - 13 Performance under KCC/SCC/ACC The Commercial Banks have to issue KCC to all eligible farmers. The performance of Banks under ACC is not at all satisfactory. Against the annual target of 9200 ACC, the Banks have issued only 2191 ACC from 1.04.07 to 30.09.07, under SCC the Banks have issued 15586 against the annual target of 40000 from 01.04.07 to 30.09.07. Banks were requested to take all possible measures to achieve the targets under ACC, SCC & KCC for the year 2007-08. Action :- Banks and Govt. line Deptt. Agenda Item No. - 14 Performance under Pisciculture All the pending eligible proposals under pisciculture should be sanctioned and disbursed on priorities. It will be easier to follow up if Bank branch wise pending list is submitted by the Deptt. to respective head of the institution with a copy to SLBC. Banks should sanction Short Term Credit just like Crop loan in agriculture to fish farmers to augment fish production in the State. Action : Banks & Govt. Line Deptt. Agenda Item No. - 15 National Housing Loan, Home Loan, Rural Housing Finance, Finance to Ex- Servicemen, Finance to Minority Community. Banks have to improve their performance and correct reporting should be made by the Banks in respect of National Housing Loan, Housing Loan, Rural Housing Finance, Finance to Ex-Service Man & Finance to Minority Community. Action : All Banks. Agenda Item No. - 16 Education Loan In education loan, every bank has to keep in mind the directions given by the Hon'ble Union Finance Minister that :- "No eligible student should forego higher education for want of money." Banks should give priority to Education loan and finance more & more to this sector. Action : All Banks.
  • 18. 14 Agenda Item No. - 17 Progress under National Horticulture Board To promote integrated development of Horticulture in Orissa, Banks were requested to dispose off the applications sponsored by 'NHB' as early as possible. All the pending proposals kept with the Banks sponsored by NHB should be disposed off at an early date. Action : Banks, Govt. line Deptt. & NHB. Agenda Item No. - 18 Financing under Textile/Handloom & Handicraft Sector. Under financing to Textile/Handloom and Handicraft Sector, Banks have to improve their performance and correct reporting should be made by the Banks. Banks should give priority to finance more and more to this sector. Action : Banks, Govt. line Deptt. Agenda Item No. - 19 Financial Inclusion The Financial inclusion of five districts i.e. Cuttack, Puri, Rayagada, Nayagarh & Keonjhar identified in the month of April-2007, may be completed by March - 2008 without fail. 100% Financial Inclusion of Kendrapara, Koraput, Kandhamal, Kalahandi, Nuapara, Bargarh, Jharsuguda, Jagatsinghpur, Bhadrak, Balasore, Angul, Dhenkanal, Mayurbhanj and Gajapati have to be completed by October 2008 at any cost. Banks, Govt. line Deptts. and all concerned were requested to implement the programme of Financial Inclusion whole heartedly in a time bound programme. LDMs of the districts must take it a challenge and take all possible measures for completion of Financial Inclusion of the State. Under NREGS (National Rural Employment Guarantee Scheme), Banks are advised to open No Frill Accounts of all beneficiaries on productions of job cards as a major programme to fulfill the corporate goal of Banks under financial inclusion. The State has to achieved 100% Financial Inclusion by 2009. Hence unidentified district for Financial Inclusion should also make a plan for opening of No Frill Account in large numbers which will enable them to complete the task of achieving the cent percent Financial Inclusion of the State by 2009. Action : Banks, Govt. line Deptt. & LDMs..
  • 19. 14 The minutes of the meeting of Steering Committee of SLBC held on 29.01.08 was placed and ratified by the SLBC. Banks, concerned agencies, Govt. line Deptt. were requested to implement the decisions taken in the meeting. Action : Banks, Concerned agencies & Govt. line Deptt. At the end, Shri V. K. Upadhyay, General Manager, UCO Bank, Head Office, Kolkata proposed vote of thanks to the Chair as well as participants. "We transform vision to reality" "Our Culture, Agri-Culture."