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AGENDA: 1 119th SLBC

CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING

The minutes of the 118th State Level Bankers’ Committee Meeting convened on 26.06.2009 (already circulated vide SLBC letter dated 10.07.2009) may be confirmed.

AGENDA: 2 New Issues

1. Coverage of handicrafts artisans provided with Artisans Credit Cards (ACC) under Credit Guarantee Scheme (CGTMSE)

Regional Director of Office of the Development Commissioner (Handicrafts), Southern Region, Chennai has advised as under vide letter dated 16.07.2009.

Quote:With a view to extend credit facility to various segments of handicrafts artisans, the Development Commissioner (Handicrafts) has placed an amount of Rs.2.80 Crores with CGTMSE, Mumbai towards guarantee fee and annual service fee so that Member Lending Institution (MLI) Branches could inform the eligible cases to CGTMSE directly and request them for debiting the guarantee fee / annual service fee from the corpus held by CGTMSE and thus get the guarantee fee for the loans sanctioned to handicrafts artisans.

ACC Scheme for handicrafts artisans under CGTMSE may kindly be given wide publicity among the Members of the state Level Bankers’ Committee and the MLIs could be requested to implement the Scheme in respective Banks.

The Assistant Directors of the Office of the Development Commissioner (handicrafts) located in the State of Tamil Nadu, specified in the enclosed list are covering several Districts and they will be recommending the eligible loan applications to the nearest branches. Member Banks may please be advised to extend ACC facility to the handicrafts artisans under the above Guarantee Scheme.

Unquote:

Member Banks are requested to take note of the above and extend ACC facility to handicrafts artisans under above credit guarantee scheme.

Annexure

Details of Assistant Directors (Handicrafts)And Districts covered

S No Assistant Director (H) Districts covered

1

Assistant Director (H), Handicrafts Marketing & Service Extension CentreNo.129-D\ICJoshu Street, Raj Nagar, Nagercoil 629 001 Phone No.04652-232361

8 Districts viz. Kanyakumari, TheniRamanathapuram, Madurai, Sivagangai, TirunelveliThoothukudi andVirudhunagar

2

Assistant Director (H)Handicrafts Marketing & Service Extension CentreNo.184 Chinnakadai Street(upstairs)Salem 636 001Phone No.0427 - 2260722

11 Districts viz. Dharmapuri, Krishnagiri, Salem, Namakkal, Karur, Pudukkottai, Trichy, Coimbatore, Erode, Nilgiris, Dindigul

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Assistant Director (A&C)Development Centre for Musical Instrument759 Anna Salai, Chennai 600 002Phone: 044-28593485

5 Districts viz. Chennai, Thiruvallur, Vellore Kanchipuram, and Tiruvannamalai

4

Assistant Director (H)Handicrafts Marketing & Service Extension Centre14 Ponnagar Main RoadReddiyar PalayamPuducherry Phone No.0413-2206615

6 Districts viz. Villupuram, Nagapattinam, Cuddalore, Tanjore, Perambalur & Tiruvarur

2

New Issues 119th SLBC

2. Loans to Denotified Nomadic Tribes (DNTs)

Indian Banks’ Association, Mumbai has requested SLBC to examine the following and convey the outcome to them:-

Quote:

The National Commission for Denotified Nomadic and Semi Nomadic Tribes (NCDNSNT) has interalia recommended that bank loans should reach Denotified Nomadic Tribes (DNTs) to enable them to undertake suitable economic activities and an appropriate percentage be fixed for the group within the overall target of PSL and the sub target for weaker section. Further the progress of disbursement of loans to DNTs may be reviewed and monitored by the District Level Consultative Committees and State Level Bankers’ Committees so as to ensure that the DNTs receive an equitable portion of the bank credit.

We request to examine the matter and place it for discussion at the next SLBC Meeting and convey to us the outcome.

Unquote:

Reserve Bank of India has advised IBA to prepare the modalities for implementation of the above recommendation of the National Commission.

The forum is requested to deliberate on the issue and offer its views / suggestions on the recommendations of the above National Commission.

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3. TN IAMWARM Project – Implementation of Micro Irrigation Scheme – Extending Loans to the Eligible Farmers towards contribution Amount

Chief Engineer (AE) i/c, Government of Tamil Nadu vide letter dated 14.09.2009 has advised as under on the captioned subject.

Quote:

Agricultural Engineering Department is implementing TN IAMWARM Project in 63 Sub basins covering Villupuram, Vellore, Tiruvannamalai, Salem, Krishnagiri, Erode, Coimbatore, Tiruppur, Thanjavur, Pudukkottai, Ariyalur, Madurai, Theni, Virudhunagar, Sivaganga, Tirunelveli, Thoothukudi. It is programmed to implement the installation of Drip and Sprinkler Irrigation Systems for all Horticultural crops vegetables, fruit crops, flowers, fodders, sugarcane etc., in the ayacut area of Tanks in the above said Districts. It is programmed to take up 22487 Ha at the cost of Rs.63.58 crores. As per the Government of India guidelines, the beneficiary farmers are eligible for subsidy of 50% of the cost of the system subject to a maximum ceiling prescribed based on crop spacing and land area of the beneficiary farmer. Now, Tamilnadu Govt. has enhanced the subsidy pattern to 65% in order to encourage more farmers to adopt Micro irrigation systems.

The farmers have to contribute the balance 35 % cost of the micro irrigation system as individual beneficiary contribution and most of the farmers prefer loan for the balance amount. The loan for this component is not readily available and farmers are finding it difficult to install this system. AED is also finding it difficult to promote this Drip and Sprinkler irrigation systems as the investment cost of this system is high and do not exactly match with the Percentage of subsidy due to the ceiling fixed by GOI. Hence, it is requested the Banker may extend their co-operation and provide loan assistance to the farmers for installation of Drip and Sprinkler irrigation Systems in the ayacut area.

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The methodology adopted for implementation of the scheme is as follows:

i. The field officers of the department and the contractor conduct demonstration to educate the farmers and canvass applications for installation of micro irrigation System.

ii. Estimates are prepared based on the field inspection and proper design and the same is approved by the concerned Assistant Executive Engineer (AED) available in every District and the subsidy component is calculated based on the existing norms. A copy of the subsidy details are communicated to the farmer for providing Contribution amount by the farmer. In case the farmers avail the bank loan, the copy of the subsidy and contribution details are communicated to the concerned Bank.

iii. Based on the Provisional sanction by Bank, the work orders are issued to the Contractors to commence the works.

iv. The contractor has to commence the works immediately and complete the works within 15 days

v. The works will be inspected at the time of installation and after the completion of the works to the satisfaction of the farmer, the concerned Assistant Engineer/Junior Engineer will measure and record the systems and the same will be verified by the Assistant Executive Engineer.

vi. The performance of the system will be checked based on the performance indicators like wetted perimeter for uniformity and the quality of the materials will also be checked as per the specification prescribed by BIS.

vii. The Bills of the contractor, pertaining to the subsidy portion will be settled within 30 days after the installation directly to the contractor as per the Contract and the same will be intimated to the concerned Bank for the release of the Contribution Amount or loan Amount to the contractor.

The drip and Sprinkler irrigation systems are guaranteed for One year and any defects within the guarantee period will be rectified by the contractor as per the contract Provisions.

5

The Department has executed 4089.59 Ha in the last two years and more area could be brought under Micro Irrigation System, if the Banks come forward to extend loans to the farmers. There is a lot of scope for Bankers to provide assistance to the farming community.

In this regard, I request that this may kindly be added in the Agenda Point in SLBC to be held in September – 09.

Unquote:

The forum is requested to deliberate and offer its views / suggestions on the above.

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4. Notification of Centres for creation of Equitable Mortgage

Karur Vysya Bank vide letter No. Legal/notified/general/kb/718/2009-10 dated 21.07.2009 addressed to the Secretary, Law Department, Government of Tamil Nadu has advised as under:

Quote:

In the State of Andhra Pradesh, the Government has already passed necessary orders long back that all the places wherever the branch of a Scheduled Commercial Bank or a Regional Rural Bank is having a branch in a place is notified / graded as a notified centre for creation of EM charge by deposit of tile deeds under Sec.58 (f) of T P Act. A similar provision, if made through a Gazette notification in the State of Tamil Nadu, will go a long way in minimizing the hardship faced by the borrowers / mortgagors in traveling to distance places just for the purpose of creation of mortgage while availing credit facilities from bankers or other lending institutions.

We will be highly thankful to Government of Tamil Nadu for considering our representation and passing necessary Government orders in this regard.

Unquote:

The forum is requested to deliberate and offer its views / recommendation on the above suggestion of Karur Vysya Bank.

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New Issues 119h SLBC

5. National Agricultural Insurance Scheme (NAIS) – Procedure for settlement of additional claims arising due to Mistakes / Errors / Omissions / Commissions of Financial Institutions

Regional Manager, Agriculture Insurance Company Ltd. (AIC), Chennai had advised vide letter dated 24.06.2009 that Government of India, Ministry of Agriculture sought the views of the Banks / State Government on the draft procedure for dealing with the above mentioned cases. The prescribed draft procedure suggested by GOI is as follows.

Quote:

1. AIC will collect and consolidate quarterly, the relevant papers/documents relating to additional claims, which may arise due to mistakes / errors, from Banks/PACS and place them before the State Level Technical Committee (SLTC).

2. If remittance of premium is delayed (beyond the stipulated cut off date) by Banks or due to delay in submission of required clarification / rectification by Banks SLTC, if deemed fit, may recommend acceptance of such declaration subject to payment of premium along with interest thereon for the period of delay on the part of the concerned Bank. The interest charged may be credited to the Sinking Fund.

3. SLTC after verification (including physical verification) may forward its recommendations through State Government to GOI with a copy to AIC.

4. Dept.of Agriculture. GOI would obtain comments of AIC on this and place it before the Central Technical Committee (CTC) headed by Joint Secretary (Credit).

5. In case it is decided by SLTC to impose liability of additional claims on the concerned Bank and the Bank is reluctant to bear this liability, under such circumstances, a 50% of the amount of additional claim

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liability payable may be adjusted out of the Bank Service Charges (BSC) which is payable to Bank. The remaining half of the liability would be debited to the Sinking Fund till 50% of additional claims liability is recovered from the Bank.

Unquote:

SLBC vide letter No: SLBC/NAIS/ 68/2009-10 dated 01.07.2009 had requested Member Banks to furnish their views / suggestions on the draft procedure for settlement of additional claims under the above stated circumstances.

Responses have been received from two RRBs only viz., Pandyan Grama Bank and Pallavan Grama Bank. Other Member Banks are requested to offer their views / recommendations if any, on the above.

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New Issues 119h SLBC 6. Financial Inclusion

RBI, Mumbai conducted evaluation studies by independent external agencies in districts where 100% financial inclusion was claimed. The study revealed that most of the accounts opened under financial inclusion drive remain inoperative. RBI has suggested that the momentum gained under financial inclusion should be sustained. Ministry of Finance, Govt.of India had also advised to discuss the findings of the evaluation study by external agencies in the quarterly meetings of Lead Bank.

SLBC vide letter dated 04.05.2009 had advised the DCC Convenors / Lead District Managers to discuss the findings of such evaluation study and initiate corrective action to overcome the deficiencies, if any in achieving 100% financial inclusion.

The progress made by the Member Banks under Financial Inclusion as on June 2009 is furnished in the Annexure I.

The District wise data as on June 2009 received from the 27 Lead Districts is furnished in the Annexure II. Other DCC Convenors /LDMs are requested to ensure submission of the data on financial inclusion to SLBC for review on time.

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Annexure IProgress under Financial Inclusion by Banks - Cumulative position

As on June 2009

S.No Name of the BankNo.of 'No-Frills a/c

opened

No.of General Purpose Credit Cards issued

1 Allahabad Bank 1190 0

2 Andhra Bank 3001 2

3 Axis Bank Ltd. 8918 0

4 Bank of Baroda 16837 11

5 Bank of India 37558 0

6 Bank of Rajasthan Ltd. 40 29

7 Bank of Maharashtra 254 0

8 Canara Bank 231207 8697

9 Central Bank of India 29409 829

10 Corporation Bank 34230 985

11 City Union Bank Ltd. 32788 0

12 Dena Bank 1342 20

13 Dhanalakshmi Bank Ltd. 6641 0

14 Federal Bank Ltd. 3634 484

15 HDFC Ltd. 14321 0

16 ICICI Bank Ltd. 156870 0

17 Indian Bank 1350014 5678

18 Indian Overseas Bank 719219 10109

19 ING Vysya Bank Ltd. 871 0

20 Karur Vysya Bank Ltd. 19923 0

21 Karnataka Bank Ltd. 2258 0

22 Lakshmi Vilas Bank Ltd. 18896 0

23 Oriental Bank of Commerce 1721 0

24 Pallavan Grama Bank 172330 281

11

S.No Name of the BankNo.of 'No-Frills a/c

opened

No.of General Purpose Credit Cards issued

25 Pandyan Grama Bank 373966 350

26 Punjab National Bank 10349 174

27 Punjab & Sind Bank 121 0

28 South Indian Bank Ltd. 34853 584

29 State Bank of India 404188 0

30State Bank of Bikaner & Jaipur 12 0

31 State Bank of Mysore 2430 0

32 State Bank of Patiala 31445 0

33 State Bank of Travancore 2514 0

34 Syndicate Bank 17743 253

35Tamil Nadu Mercantile Bank Ltd. 12267 75

36 Tamil Nadu State Co.op Bank 132829 3597

37 Union Bank of India 45250 488

38 United Bank of India 18 0

Total 3931457 32646

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Annexure IIDistrict wise data on Financial Inclusion – Cumulative position

As on June 2009

S.No Name of the DistrictNo.of 'No-Frills

a/c opened

No.of General Purpose Credit Cards

issued1 Ariyalur 86030 0 2 Coimbatore 21480 13503 Cuddalore 440407 10574 Dharmapuri 83116 1395 Dindigul 398821 24606 Erode 121772 0 7 Kancheepuram 122890 08 Kanyakumari 156359 31329 Karur 41164 31010 Krishnagiri 212386 33511 Madurai 479859 567112 Nagapattinam 137043 27413 Namakkal 76340 41114 Perambalur 75312 0 15 Pudukottai 173013 0 16 Ramanathapuram 156848 0 17 Salem 315566 3118 Sivaganga 171083 1929619 Thiruvannamalai 47417 85020 Tiruchirapalli 26610 36321 Tirunelveli 73515 2322 Tiruvallur 185813 0 23 Tiruvarur 92909 1024 Tuticorin 188531 17325 Vellore 218083 25626 Villupuram 65548 80327 Virudhunagar 3374 71

Total 4171289 37015

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New Issues: 119th SLBC

7. Setting up of Rural Self-Employment Training Institutes (RSETIs)

A Sub-committee of SLBC for RSETIs was constituted in the 117th SLBC meeting held on 26.03.2009 in line with the Guidelines for RSETIs issued by MORD, GOI, to assign districts to member Banks. In the Sub Committee meeting, assignment of Districts was done on the basis of the request by Banks.

Allocation of Districts:

Bank wise allocation of Districts made till date for setting up of RSETIs in Tamil Nadu State is shown below.

Sl.No Name of Bank Districts approved for setting up RSETI1 Indian Overseas Bank Tirunelveli & Trichy (2)2 Indian Bank Salem, Tiruvallur & Vellore (3)3 Canara Bank Dindigul, Theni, Erode & The Nilgris (4)4 State Bank of India Tuticorin & Ariyalur (2)

Total 11 Districts

In the districts like Coimbatore, Madurai, Sivaganga and Thanjavur, Banks had already set up RSETI type of training institutions.

In the 118th SLBC meeting, Canara Bank had expressed willingness to set up RSETI in Tiruppur District.

Providing Land for construction of RSETIs:

SLBC had requested TNCDW to provide suitable land to the respective Banks to set up the training institutes with the funding assistance forthcoming from GOI. Allotment of land is required for preferring claim with National Institute of Rural Development (NIRD) for GOI assistance.Local Advisory Committee

14

Ministry of Rural Development, Government of India in the Guidelines for RSETIs had advised Banks to form Local Advisory Committee for effective administration / functioning of the training institutions.

A ‘Local Advisory Committee’ (LAC) at the Institute level should be formed with Regional Head of the sponsoring bank acting as the Chairman. Lead District Manager, District Development Manager( NABARD), GM, (District Industries Centre), PD (DRDA), the Employment Exchange Officer, Heads of vocational institutes in the district like ETCs, ITIs, Polytechnics, KVKs etc. and two or three eminent personalities connected with rural development training in the district may be included as members. The Director of the RSETI shall be the Convener. The LAC shall have representation from local business and industrial houses, and leading NGOs working in the areas of skill development and self-employment.

The assignee Banks are requested to advise the developments with regard to setting up of RSETI in the allotted districts.

Member Banks are requested to identify uncovered / unallotted districts for setting up of RSETIs. A meeting of the Sub-Committee will be convened shortly for this purpose.

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8. SETTING UP OF FINANCIAL LITERACY & CREDIT COUNSELLING CENTRES (FLCCC)

As per the decision of SLBC, a Sub-committee meeting was constituted to monitor the progress in setting up of FLCCCs by member Banks in Tamilnadu.

Meeting of the Sub Committee was held on 16.04.2009 wherein member Banks were urged to explore the possibilities of setting up FLCCCs in more places.

In the State of Tamilnadu the following Banks had set up FLCCCs.

Sl.No Name of FLCCC Sponsoring Bank Place

1 ABHAY Bank of India Chennai

2 DISHA ICICI Bank Ltd Chennai

3 FLCCC Indian Bank Dharmapuri

4 SNEHA Indian Overseas Bank Kanyakumari

Central Bank of India and City Union Bank Ltd have advised that they would start FLCCC in Villupuram and Tiruvarur districts respectively. The developments in this regard may be advised to RBI and SLBC.

Member Banks are requested to identify uncovered / unallotted districts for setting up of FLCCCs. A meeting of Sub-Committee will be convened shortly.

16


9. Government of India’s Agricultural Debt Waiver & Debt Relief Scheme 2008

Government of India has extended the period of payment of 75% of overdue portion by the other farmer under One Time Settlement Scheme under ADWDRS for another six months i.e., from 01.07.2009 to 31.12.2009.

Further, the Banks / lending institutions are allowed to receive even less than 75% of the eligible amount under OTS provided the Banks / lending institutions bear the difference themselves and do not claim the same either from the Government or from the farmer. The Government will pay only 25% of the actual eligible amount under debt relief.

Government of India have also clarified that lending institutions would not charge any interest on the eligible amount from February 29, 2008 to June 30, 2009. However, the Banks may charge normal rate of interest on the eligible amount from July 01, 2009 upto the date of settlement. 31st

January, 2010 will be last date for receiving grievances by all agencies as communicated vide SLBC letter dated 31.07.2009. SLBC had kept the member Banks informed of these developments.

The details of progress as on 14.09.2009 received from Member Banks are furnished in the Annexure III B. Loan amount pertaining to 11.01 lacs small / marginal farmers’ to the tune of Rs.2247.36 crores have been waived and 2.57 lacs other farmers have been offered relief to the extent of Rs.594.33 crores.

The details with regard to complaints / grievance petitions received by Lending Institutions as on 31.07.2009 are furnished in the Annexure.

A) Member Banks are requested to take advantage of the extension of time to provide relief to eligible other farmers.

B) Member Banks are requested to inform the progress (Annexure IIIA) every Monday to SLBC to enable SLBC to submit the consolidated report on every Tuesday to RBI.

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C) Member Banks are requested to dispose-off the pending complaints and advise progress to SLBC on monthly basis.

D) Member Banks are also requested to send soft copies of the data for each district, to the DCC Convenors / Lead District Managers concerned immediately, as LDMs are required to keep the CDs containing data for their respective lead districts as per the directions of the Ministry of Finance, Government of India.

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10. FLOW OF CREDIT TO AGRICULTURE

The target under farm credit disbursement by Banks for the current year 2009-10 is Rs.22611.76 Crores.

The performance details of Banks in respect of credit disbursement to Farm Sector for the 4 months period from 01.04.2009 to 31.07.2009 are furnished in Annexure.

As against the Annual Target of Rs.22611.76 Crores, disbursement during the current year (2009-10), upto July 2009 amounted to Rs.6044.73 Crores which works out to 26.73%.

Member Banks are requested to accelerate the credit flow to Farm Sector to ensure 100% achievement under ACP 2009-10.

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STATE LEVEL BANKERS' COMMITTEE, TAMILNADUCONVENOR : INDIAN OVERSEAS BANK

PROGRESS IN DOUBLING OF AGRICULTURAL CREDITBY THE BANKING SYSTEM IN TAMILNADUFOR THE PERIOD 01.04.2009 TO 31.07.2009

Provisional(Rs. in lacs)

Sl.No

Particulars Co-op RRBS Comm.Bks

Total

1 Loans Issued: 32242.59 27229.56 545000.87 604473.02

1A Crop Loans 31101.92 25465.28 472587.29 529154.49

1B Term Loans 1140.67 1764.28 72413.58 75318.53

2 No. of New Farmers Financed 7658 14222 165076 186956

3 No. of Agri Clinics Financed 0 0 8 8

4 % of New Loans issued of 1B above

9.65 20.46 37.82 33.64

5 Of 1 above, loans issued in respect of farmers who have been extended relief for

5a Distress 130 0 982 1112

5b Arrears 0 0 121 121

5c OTS 0 0 280 280

6 SHGs formed for Tenant FarmersNumber 71 0 211 282

Amount 38.2 0 187.36 225.56

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AGENDA No: 3 119th SLBC

REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY PARAMETERS AS OF JUNE 2009

KEY PARAMETERS (Amount – Rs. in crores)

ParametersJUNE 2008

JUNE2009

VARIATION & % OF GROWTH OVER

JUNE 2008No. of Branches 5549 5953 404Deposits

197571.74 234659.55 37087.81 (18.77%)Advances 231150.93 267492.27 36341.34 (15.72%)CD Ratio

117% 114% -3%Investments 4062.36 3486.56 -575.80Credit + Investment to Deposit Ratio 119% 115% -4%Priority Sector Advances 84236.51 106680.61 22444.10 (26.64%)% of Priority Sector Advances to Total Advances 36.71 39.58Agricultural Advances 31729.24 42658.54 10929.30 (34.45%)% of Agricultural Advances to Total Advances 13.83 15.83Micro & Small Enterprises (MSE) 19623.13 31148.88 11525.75 (58.74%)% of MSE to Total Advances 8.55 11.56Other Priority Sector Advances 32884.14 32873.19 -10.95 (-0.03%)% of OPS Advances to Total Advances 14.33 12.20Advances to Weaker Sections 17033.91 21784.41 4750.50 (27.89%)% of Weaker Section Advances to Total Advances 7.42 8.08DRI Advances 45.59 87.41 41.82 (91.73%)% of DRI Advances to Total Advances 0.02 0.03

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BRANCH NETWORK

As at the end of June 2009, the total number of Bank Branches in Tamilnadu increased to 5953 from 5549 in June 2008. Group wise spread of Bank branches in Tamilnadu as of June 2008 and June 2009 are given below:

Name of the Group JUNE 2008

JUNE2009

Variation

State Bank Group 836 876 40Nationalised Banks 3194 3398 204Private Sector Banks 1241 1376 135RRBs 256 280 24Foreign Banks 22 23 1Total 5549 5953 404

The Population per Bank Branch in Tamil Nadu now stands at 11084 as against national average of 15000 (based on 2001 census).

DEPOSIT GROWTH

Deposits of the Banks in Tamil Nadu have increased from Rs.197571.74 crores as of June 2008 to Rs.234659.55 crores as at June 2009, registering an increase of Rs.37087.81 crores. The year to year incremental deposit growth works out to 18.77% as against the growth of 18.14% from June 2007 to June 2008.

CREDIT EXPANSION

Advances by Banks in Tamil Nadu increased from Rs.231150.93 crores as of June 2008 to Rs.267492.27 crores as of June 2009, registering an increase of Rs.36341.34 crores with a growth rate of 15.72% as against the growth rate of 20.26% recorded in the previous year.

CD RATIO

The Credit Deposit Ratio of Commercial Banks in Tamilnadu decreased from 117% as of June 2008 to 114% as of June 2009.

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CREDIT + INVESTMENT TO DEPOSIT RATIO

The Credit + Investment to Deposit ratio in Tamilnadu decreased from 119% in June 2008 to 115% in June 2009.

Overall CD ratio in the State of Tamilnadu is shown as under:

Parameter JUNE 2008

JUNE2009

Variation over June 2008

CD ratio of Commercial Banks 117% 114% -3%

Credit + Investment to deposit 119% 115% -4%

PRIORITY SECTOR ADVANCES

Priority Sector advances of Commercial Banks including Foreign Banks have gone up from Rs.84236.51 crores as of June 2008 to Rs.106680.61 crores as of June 2009, thereby showing an increase of Rs.22444.10 crores which represents 26.64% growth. The share of Priority Sector Credit to Total Credit, as at the end of June 2009 was 39.58% as against the national norm of 40%.

Priority Sector Advances have shown an incremental growth of 17.97% during the period June 2007 to June 2008.

AGRICULTURAL ADVANCES

The Agriculture Advances in the State during the review period has witnessed an increase of Rs.10929.30 crores from Rs.31729.24 crores as of June 2008 to Rs.42658.54 crores as of June 2009, thus showing a growth of 34.45% as against an increase of Rs.4168.52 crores or 15.12% during the same period last year. However, the share of agricultural credit in total advances of June 2009 was 15.83% against the national norm of 18%.

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MICRO & SMALL ENTERPRISES (MSE)

As per the revised Priority Sector guidelines, Micro & Small Enterprises (MSE) comprises of both Manufacturing and Service Enterprises viz., Professional & Self employed, Small Business, Road Transport Operators etc.

Accordingly, the outstanding level of credit to MSE Sector stood at Rs.31148.88 crores as of June 2009 amounting to 11.56% of total credit.

As on June 2008 credit to SSI sector amounted to Rs.19623.13 crores.

OTHER PRIORITY SECTOR ADVANCES

As per the revised Priority Sector guidelines, Other Priority Sector Advances now consists of Retail Trade, Micro Credit, Education, Housing & State Sponsored Organisation for SC/ST only.

The outstanding Advances to Other Priority Sector by Banks as above was Rs.32873.19 crores.

As on June 2008, Other Priority Sector credit stood at Rs.32884.14 crores.

ADVANCES TO WEAKER SECTIONS

The advances to Weaker Sections under Priority Sector Credit by the Commercial Banks in Tamil Nadu registered an increase of Rs.4750.50 crores representing 27.89% growth. The outstanding amount has increased from Rs.17033.91 crores as of June 2008 to Rs.21784.41 crores as of June 2009. At this level, advances to Weaker Sections constituted 8.08% of the total credit. The growth in previous year (June 2007- June 2008) was 7.42%.

DRI ADVANCES

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The DRI advances have increased from Rs.45.59 crores as on June 2008 to Rs.87.41 crores as of June 2009, registering a growth rate of 91.73%.

NATIONAL NORMS

PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED NATIONAL NORMS ARE AS UNDER:

(Amount Rs.in Crores)

Particulars

National Norms for March 2010

Achievement upto June 2009

% Target Amount

% Amount

Priority Sector Advances to Total Advances 40 107824.42 39.58% 106680.61

Agricultural Advances to Total Advances 18 48520.99 15.83% 42658.54

Weaker Section Advances to Total Advances 10 26956.11 8.08% 21784.41

DRI Advances to Total Advances of previous year 1 2695.61 0.03% 87.41

Total Priority Sector Advances increased from Rs.84236.51 crores to Rs.106680.61 crores between June 2008 and June 2009. Consequently, the percentage of Priority Sector Advances to Total Advances has shown a marginal increase from 36.71% to 39.58% as at the end of June 2009.

The percentage of Agriculture Advances to total advances has increased from 13.83% as at the end of June 2008 to 15.83% in June 2009.

The share of advances to weaker sections has also increased from the level of 7.42% in June 2008 to 8.08% in June 2009.

Regarding the share of DRI advances to total advances also, it continues to remain below the National Norm of 1%.

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Member Banks are requested to take concerted action for increasing the advances to these vital segments.

ACTION AREAS:-

1. Member Banks have to enhance their lending under Priority Sector so as to achieve the annual target of Rs.107824.42 crores by March 2010.

2. Similarly credit disbursement to Farm Sector has to be accelerated for achieving the March 2010 target of Rs.48520.99 crores. Member Banks are requested to focus on improving the credit flow to agriculture by their branches in the districts of Coimbatore, Tiruppur, Tiruvallur and Virudhunagar districts as the share of Agri Advances to total credit in these districts is below the National Norm of 18%,

3. Member Banks are requested to step up their lending to weaker sections for attaining the annual target of Rs.26956.11 crores so that the national norm of 10% is achieved for this category of advances also.

4. Member Banks are requested to focus on increasing the advances under DRI.

CREDIT + INVESTMENT TO DEPOSIT RATIO

Commercial Banks including Regional Rural Banks have invested Rs.3486.56 crores in Government securities, shares, Bonds, Debentures etc., apart from credit outstanding of Rs.267492.27 crores.Hence, the Credit + Investment to Deposit Ratio as of June 2009 is 115%.

Overall CD Ratio as of June 2009 is as follows:(a) Commercial Banks : 114%(b) Including Co-operative Banks : 121%

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(c) Credit + Invest. Deposit Ratio (Comm.Bks.) : 115%(d) Credit + Investment Deposit Ratio : 126%

(including Co-operative Banks)

DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU

A comparative analysis of the performance of the commercial banks in Tamilnadu indicates the following:

a) Tiruppur district has the highest CD ratio at 189% followed by Dindigul & Virudhunagar districts (151%) & Theni (149%) .

b) Of the 31 lead districts, the CD ratio of 29 districts is above the RBI norm of 60%.

c) Kancheepuram and Tiruvallur Districts are having CD ratio of 48% and 58% respectively which is less than the National Norm of 60% and Member Banks are requested to focus their attention to improve their lending so as to achieve the National Norm for CD Ratio in that districts.

Agricultural advances to total advances in the following districts is below 18%.

Coimbatore -- 12.13%Tiruppur -- 14.13%Tiruvallur -- 15.67%Virudhunagar -- 12.93%

31

REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF JUNE 2009

As at the end of June 2009, there were 784 branches of Co-operative Banks (both, District Central Co-operative Banks and State Agricultural and Rural Development Banks) in Tamilnadu. The details are furnished for the information of the members.

Classification of BranchesJUNE 2008

JUNE2009

Rural 283 256Semi-Urban 183 210Urban 205 203

Metro 111 115TOTAL 782 784

(Amount – Rs. in Crores)

ParticularsJUNE 2008

JUNE2009

Deposits 14239.24 16350.72Advances 15724.42 17589.13Investments 4701.53 6583.09

CD Ratio 110.43% 107.57%Credit + Investment to Deposit Ratio 143.45% 147.84%

32

(Amount – Rs. in Crores)S.No. Particulars June 2008 June 2009

1 Agricultural Advances 2921.90 2565.76 Of which, Direct Advances 1087.36 505.852 Micro & Small Enterprises 204.64 262.73

3Retail Trade

244.37 453.334 Education 441.52 519.395 Housing 60.99 68.996 Micro Finance & Others 372.49 969.66 TOTAL PRIORITY SECTOR ADVANCES 4245.91 4839.86

ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS

(Amount – Rs. in crores)

JUNE 2008

JUNE2009

Total Advances to Weaker Sections 2485.89 11452.44 Of which,

(i) Advances under SC/ST 291.60 1807.22 (ii) Advances under IRDP/SGSY 48.35 66.62 (iii) Advances under DRI 2.44 26.22

33


REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2009 – 2010: APRIL 2009 TO JUNE 2009

As per the quick information report obtained from the Lead District Managers, Banks in Tamil Nadu have disbursed total credit of Rs.8910.94 crores under Annual Credit Plan during the first quarter ended June 2009 as against the plan allocation of Rs.10171.97 crores, representing 88% achievement under ACP for the year 2009-10.

Amount in Rs. crores

SectorCredit Allocation Credit Disbursed

% of AchievementApril 2009 to

June 2009April 2009 to June 2009

Farm 5288.72 4997.63 94Non-Farm 2565.14 2055.16 80OPS 2318.11 1858.15 80TOTAL 10171.97 8910.94 88

Credit flow to Farm Sector aggregates to Rs.4997.63 crores as against the allocation of Rs.5288.72 crores, representing 94% achievement.

Under Non-Farm Sector the disbursement upto the first quarter works out to Rs.2055.16 crores against the Plan allocation of Rs.2565.14 crores, which comes to 80%. Under the category of Other Priority Sector Advances, the achievement by Banks during the first quarter was Rs.1858.15 crores as against the Plan allocation of Rs.2318.11 crores, which works out to 80% of the allocation.

37

A Comparative position of disbursement under ACP during quarters ended JUNE 2008 AND JUNE 2009 is furnished below:

Amount Rs. in crores

SectorCredit disbursed from April 2008 to June 2008

Credit disbursed from April 2009 to June 2009

Variation in percentage

Farm 4122.53 4997.63 21.23Non-Farm 1818.67 2055.16 13.00OPS 1750.61 1858.15 6.14TOTAL 7691.81 8910.94 15.85

District wise performance:

District wise/Major Sector wise performance for the period ended June 2009 is furnished in Annexure – I. Banking System in Tamilnadu has achieved 88% of the Plan allocation during the period under review. The performance of the individual districts varies from 38% to 137%. The following 13 districts have achieved 100% of the target.

Sl. No.

District % of Achieve-

ment

Sl. No.

District % ofAchieve-

ment1. DHARMAPURI 137 8. THENI 1012. TIRUCHIRAPPALLI 123 9. MADURAI 1013. VIRUDHUNAGAR 114 10. COIMBATORE 1014. PERAMBALUR 104 11. ERODE 1015. DINDIGUL 104 12. TIRUVALLUR 1006. T.V.MALAI 102 13. NILGIRIS 1007. KRISHNAGIRI 102

The performance of Banks in Tuticorin District (38%) is very low and Banks have to improve their performance vastly under ACP 2009-10 in the remaining months.

38

Sector wise performance:

A. Farm Sector (Agriculture and Allied Activities):The performance under Farm Sector is satisfactory with 94% achievement during the first quarter ended June 2009. In the following 16 districts, the performance is 100% & above of the Plan allocation for June 2009. Performance in other districts has to be scaled up to 100%.

Sl.No. District

% of Achieve-

ment

Sl.No. District

% of Achieve-

ment1. VIRUDHUNAGAR 219 9. DINDIGUL 1042. TIRUCHIRAPPALLI 135 10. TIRUVALLUR 1023. KRISHNAGIRI 115 11. THENI 1014. DHARMAPURI 113 12. MADURAI 1015. PERAMBALUR 113 13. COIMBATORE 1006. NAGAPATTINAM 112 14. RAMANATHAPURM 1007. SIVAGANGA 109 15. ERODE 1008. T.V.MALAI 108 16. NILGIRIS 100

Non-Farm Sector – Industries:

Performance of Banks under Non-Farm Sector is 80% of the Plan allocation. The following districts have performed well by achieving the target allocated for the first quarter ended June 2009.

Sl.No. District % Sl.No. District %1. TIRUCHIRAPPALLI 167 5. ERODE 1012. THENI 104 6. MADURAI 1013. DINDIGUL 103 7. COIMBATORE 1004. NILGIRIS 103

Districts other than the above have registered less than 100% achievement.

39

The performance of Banks in the following districts under Non-Farm Sector is much below 50% and the LDMs of these districts are requested to bestow their attention and co-ordinate with Member Banks to improve the performance under Non-Farm Sector during the current year.

Sl.No. District % Sl.No. District %1. KARUR 45 6. THANJAVUR 352. T.V.MALAI 44 7. TIRUVARUR 253. KRISHNAGIRI 41 8. NAMAKKAL 224. SALEM 40 9. NAGAPATTINAM 165. KANYAKUMARI 39 10. TUTICORIN 12

Other Priority Sector:

Performance of Banks in Tamilnadu under Other Priority Sector Advances works out to 80% of the Plan allocation during the first quarter ended June 2009. Performance of the following 9 districts is above 100%.

Sl.No. District % Sl.No. District %1. DHARMAPURI 225 6. MADURAI 1022. VIRUDHUNAGAR 146 7. TIRUVALLUR 1023. KRISHNAGIRI 105 8. THENI 1014. DINDIGUL 103 9. ERODE 1015. COIMBATORE 103

In the following districts the performance of Banks under OPS is very low. Banks have to focus their attention on accelerating the lending to other priority sector in these districts to achieve 100%.

Sl.No. District % Sl.No. District %1. Tuticorin 25 5 Tirunelveli 452. Namakkal 37 6. Karur 483. Tiruvarur 38 7. Cuddalore 494. Sivaganga 39

The details of progress made under ACP 2008-09 upto the year ended March 2009 have also been furnished in the Annexure for information.

40


SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY):-

Guidelines of SJSRY have been revised with effect from 01.04.2009. The same has been circulated to Member Banks vide SLBC letter dated 18.09.2009.

SJSRY has now the following two credit cum subsidy schemes.

Urban Self Employment Programme (USEP)Urban Women Self-Help Programme (UWSP)

The operational details of the schemes are furnished in Annexure II and III.

A) Member Banks are requested to take note of the revised guidelines and ensure successful implementation of the Scheme.

B) The progress made under SJSRY for the programme year 2008-09 as on 14.09.2009 is furnished in Annexure I. C) Municipal Administration Department is requested to advise SLBC on the SJSRY targets and action plan for the current year (2009-10) to enable SLBC to advise the same to Member Banks / DCC Convenors / LDMs.

46

Annexure I

Progress made under SJSRY for the Programme year 2008-09

(Amount Rs.in Lacs)

NO. PARTICULARSSJSRY-USEP

SJSRY-DWCUA

TOTAL

1 Applications sent to Banks 9413 1094 10507

2 Applications sanctioned 6323 1014 7337

3 Applications rejected 755 13 768

4 Applications Pending 2335 67 2402

5 Subsidy allotted 184.76 566.25 751.01

6 Subsidy utilized 166.20 539.13 705.33

7 Subsidy pending 18.56 27.12 45.68

8 Utilization of Subsidy 90 95 94

47


Prime Minister’s Employment Generation Programme (PMEGP)

For the Programme year 2009-10 against the target of 3517 projects creating employment to 35165 persons with a margin money assistance of Rs.42.20 Crores, Banks have sanctioned 639 loans involving margin money of Rs.11.32 Crores. (Details are furnished in the Annexure)

During the review by the State Level Monitoring Committee on 14.09.2009 Banks were advised to comply with the following for effective implementation of PMEGP Scheme.

1. All the Loan Applications received by Bank Branches upto 30.06.2009 should be disposed off immediately in any case on or before 30.09.2009, with specific reason in case of rejection.

2. EDP training for the beneficiaries is imparted on the basis of the sanction letter given by Banks under the scheme. In several cases banks do not disburse loans on completion of training on the ground that the sanction letter given was a provisional one. As the scheme has no provision for provisional sanction, Banks have to issue regular sanction letter after completing the assessment and disburse loans expeditiously on undergoing of EDP training by beneficiaries.

3. Banks have to institute a mechanism to follow up the progress under the scheme by their branches, getting the data from their District Coordinators, who may be advised to liaise with DIC / KVIC / KVIB Officials.

4. Banks should claim margin money immediately after the first disbursement.

5. Loan applications should not be returned / rejected on the ground that the target is achieved or there is no target.

Member Banks are requested to take note of the same for compliance.

Member Banks and Nodal Agencies are requested to work together for 100% achievement of the target in the current year.

51

Annexure

Bank wise Progress made under PMEGP Scheme (2009-10) during the first quarter ended June 2009

Rs. In lacs

S.No Bank

Target Performance

No. of Projects M.M. Emp.

FORWARDED SANCTIONED

NO MM NO MM

1 State Bank of India 644 773.35 6444 913 1475.30 96 176.522 Canara Bank 546 654.30 5452 512 929.33 78 152.033 Indian Overseas Bank 520 624.65 5205 722 907.27 97 150.584 Indian Bank 445 534.00 4450 782 1011.37 133 196.465 Bank of India 224 268.65 2239 129 211.01 20 27.336 Union Bank of India 195 233.70 1947 156 283.65 30 52.767 Central Bank of India 157 188.80 1573 124 227.05 14 12.738 Bank of Baroda 149 179.20 1493 88 225.56 12 47.009 Syndicate Bank 112 134.70 1122 127 212.82 16 33.44

10 Vijaya Bank 91 108.65 905 32 46.76 11 13.5111 Punjab National Bank 82 98.20 818 61 137.40 14 33.2012 Dena Bank 29 35.20 293 9 6.54 2 0.7513 Corporation Bank 29 35.30 294 84 196.13 15 18.01

14State Bank of Travancore 18 22.00 183 64 66.07 7 4.54

15 UCO Bank 17 20.50 171 42 61.92 14 18.6616 State Bank of Mysore 15 17.65 147 19 55.63 3 0.7117 Andhra Bank 13 16.00 133 27 41.67 8 12.9418 State Bank of Hyderabad 13 15.65 130 10 8.06 2 0.8319 Allahabad Bank 12 14.40 120 24 78.85 4 9.2520 Other Banks 204 245.33 2044 184 352.95 63 171.62

TOTAL

3517 4220.23 35165 4109 6535.33 639 1132.85

52


SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY 2009-10)

During the year 2009-10, Banks in Tamilnadu have disbursed credit to the tune of Rs.67.59 crores under SGSY against the credit mobilisation target of Rs.212.19 crores thereby achieving 31.85% of the target in 4 months from April to July 2009.

Performance of the Banking System in Tamilnadu under SGSY 2009-10 as on 31.07.2009Amount in Rs. Lacs

S.No. PARTICULARSJULY 2009

ECONOMIC ACTIVITY REVOLVING FUND TOTAL

SHG INDIVIDUALS TOTAL 1 No. of Loans granted 675 2215 2890 7665 105552 Swarozgaris 13092 2215 15307 118210 1335173 Amount Disbursed 2815.50 111.10 2926.60 3832.40 6759.004 % of Credit disbursment to Annual Target 31.85%5 Subsidy Utilised 938.50 37.03 975.53 766.48 1742.016 Credit Subsidy Ratio 3.00 3.00 3.00 5.00 3.887 Coverage Under:- SC/ST 7051 699 7750

% (Norm 50%) 53.86 31.56 50.63 WOMEN 12903 736 13639 % (Norm 40%) 98.56 33.23 89.10 DISABLED 381 912 1293 % (Norm 3%) 2.91 41.17 8.45

I. Performance under Economic Activity:

a. For the period ended 31.07.2009, Banks have extended credit assistance to the tune of Rs.2815.50 lacs along with subsidy assistance of Rs.938.50 Lacs for taking up economic activities to 675 Self Help groups benefiting 13092 swarozgaris.

b. During this period, Rs.111.10 lacs with a subsidy of Rs.37.03 Lacs has been granted to 2215 individual swarozgaris to take up economic activities.

53

II. Performance under Revolving Fund:

Revolving Fund assistance of Rs.3832.40 lacs has been extended to 7665 Self Help Groups with a subsidy assistance of Rs.766.48 Lacs.

III. Achievement under Sub-sector Norms:

The Sub-sector norms for Economic Activity Viz. 50% for SC/ST, 40% for Women and 3% for Disabled have surpassed by achieving 50.63%, 89.10% and 8.45% respectively.

DETAILS OF ECONOMIC ASSISTANCE (AGENCY WISE) AND REVOLVING FUND DISBURSED UNDER SGSY 2009-10 AS AT THE END OF JULY 2009

Amount in Rs. LacsAGENCY CREDIT DISBURSED

Economic ActivityCommercial Banks 2116.62RRBs 303.58Co-operative Banks 459.69Other Banks 46.71TOTAL CREDIT UNDER ECONOMIC ACTIVITY 2926.60

CREDIT UNDER REVOLVING FUND 3832.40TOTAL CREDIT TO SGSY 6759.00

Subsidy Credit Ratio:

Banks in Tamil Nadu have achieved a Subsidy Credit Ratio of 1 :3.88 and surpassed the stipulated subsidy credit ratio of 1:3 during the first 4 months period ended July 2009. Member Banks and TNCDW are requested to carry forward the same during the rest of the financial year.

(Amount Rs. in Lacs)

54

DISTRICT / AGENCYWISE CREDIT DISBURSED UPTO THE MONTH OF JULY 2009S.No District Revised

TargetRevolving

FundCredit Disbursed for Economic Activity Total

CreditCom.Bks Co-op Bks RRBs Others

1 Ariyalur 359.290 40.00 31.500 5.250 5.250 0.000 82.000

2 Coimbatore 973.650 168.00 38.350 9.720 4.725 0.000 220.795

3 Cuddalore 884.550 211.50 24.750 4.125 4.125 0.000 244.500

4 Dharmapuri 551.470 97.50 1.430 1.120 0.000 0.000 100.050

5 Dindigul 669.010 64.00 62.625 36.000 0.000 12.000 174.625

6 Erode 770.360 39.00 60.806 10.134 10.134 0.000 120.075

7 Kancheepuram 975.740 191.50 111.000 12.000 0.000 0.000 314.500

8 Kanniyakumari 467.230 26.50 55.215 9.203 9.203 0.000 100.120

9 Karur 413.430 58.50 56.500 15.800 0.000 0.000 130.800

10 Krishnagiri 601.190 54.00 126.380 0.000 0.000 0.000 180.380

11 Madurai 768.820 105.00 84.980 22.620 23.950 0.000 236.550

12 Nagapattinam 568.420 161.50 41.800 14.675 0.000 0.000 217.975

13 Namakkal 557.910 192.00 20.700 2.250 2.250 0.000 217.200

14 Nilgiris 168.330 34.00 20.700 0.000 0.000 0.000 54.700

15 Perambalur 211.040 36.50 27.900 3.000 3.000 0.000 70.400

16 Pudukkottai 546.990 41.00 53.798 8.966 8.966 0.000 112.730

17 Ramanathapuram 499.850 149.50 18.000 12.000 3.000 0.000 182.500

18 Salem 990.620 214.50 45.225 7.538 7.538 0.000 274.800

19 Sivagangai 493.500 61.50 86.340 9.216 9.230 0.000 166.286

20 Thanjavur 869.320 69.00 138.000 33.000 0.000 0.000 240.000

21 Theni 398.260 112.50 87.420 15.000 0.000 0.000 214.920

22 Tirunelveli 939.280 279.00 45.730 8.810 6.563 5.275 345.378

23 Tiruvallur 807.100 204.50 140.850 7.500 0.000 0.000 352.850

24 Tiruvannamalai 938.930 198.00 66.000 15.000 12.000 21.000 312.000

55

25 Tiruvarur 600.970 18.40 21.150 3.525 13.990 8.430 65.495

26 Thoothukudi 707.450 169.50 60.470 7.078 7.078 0.000 244.126

27 Tiruchirapalli 649.970 79.00 78.000 36.000 0.000 0.000 193.000

28 Vellore 1483.100 402.50 150.750 0.000 0.000 0.000 553.250

29 Villupuram 1748.260 239.00 211.443 108.500 85.260 0.000 644.203

30 Virudunagar 604.940 75.00 90.310 31.915 77.570 0.000 274.795

31 Tirupur 40.00 58.500 9.750 9.750 0.000 118.000TOTAL 21218.980 3832.400 2116.622 459.694 303.581 46.705 6759.002

56


CREDIT FLOW TO WOMEN

Government of India and Reserve Bank of India have advised banks to strengthen the credit flow to women and ensure that their share in Bank Credit is increased to 5%.

As the recovery under the loans granted to Women Self Help Groups is encouraging, Banks are requested to maximise their credit flow to women by involving NGOs / SHGs besides Tamilnadu Corporation for Development of Women Ltd., (TNCDW Ltd.,).

The details of performance of the Banks in Tamilnadu under credit flow to women entrepreneurs as of June 2009 are furnished below:

(Amount in Rs. Crores)

S.No PROGRAMMEDisbursement made during the Quarter

Outstanding position as of June 2009

Accounts Amount Accounts Amount

1 SGSY 2027 17.3 77332 395.34

2 PMRY * 244 2.59 34319 102.85

3 DRI 1120 1.29 14130 23.69

4 Micro & Small Enterprises 1330 26.18 55605 799.11

5 OTHERS 176575 525.39 2825073 11084.08

TOTAL 181296 572.75 3006459 12405.07

* PMRY was discontinued w.e.f 01.04.2008

At the level of Rs.12405.07 crores, advances to women constitute 4.64% of total Bank credit.

Member Banks are requested to maximise their credit flow to women so as to achieve the share of credit to women to 5% of the total Bank Credit.

57


SELF HELP GROUPS (SHGs)

The Self-Help Group is an effective tool for delivering credit to rural poor for their economic empowerment and social development.

As approved in the 118th SLBC held on 25.06.2009, the SHG credit linkage target for 2009-10 is Rs.2400 Crores including the Non Mahalir Thittam Groups. In the current year up to 31.08.2009 disbursement to SHGs amounted to Rs.566.67 Crores against the annual target of Rs.2400 Crores.

Reserve Bank of India & Government of India are closely monitoring the observance of one day in a week as "SHG Banking Day". Hence, Member Banks are requested to ensure that "SHG Banking Day" is being observed by their Bank Branches in Tamil Nadu.

The District wise performance under Mathi and NonMathi groups in the current year as on 31.08.2009 is furnished in the Annexure I.

The nodal agency viz., TNCDW Ltd is requested to furnish the details like number of SHGs formed, graded and credit linked cumulatively and also during the current year.

58

Annexure ISHGs-Bank Credit linkage-District wise Performance – 2009-10 As on 31.08.2009 (Rs.in Crores)Sl. No.

District Mahalir Thittam Non - Mahalir Thittam

Total

Target Achi. Target Achi. Target Achi.1 Ariyalur 14.4 0.93 3.15 0.19 17.55 1.122 Chennai 46.35 28.55 40.95 13.1 87.3 41.653 Coimbatore 22.5 6.69 5.85 0.52 28.35 7.214 Cuddalore 29.25 14.45 9.9 3.47 39.15 17.925 Dharmapuri 38.25 41.66 24.75 16.86 63 58.526 Dindigul 19.8 6.72 2.7 8.5 22.5 15.227 Erode 25.65 11.13 5.85 4.19 31.5 15.328 Kancheepuram 31.5 15.84 7.65 4.2 39.15 20.049 Kanyakumari 33.75 10.8 10.8 5.83 44.55 16.6310 Karur 15.3 6.74 1.35 1.66 16.65 8.411 Krishnagiri 15.75 8.19 38.25 11.8 54 19.9912 Madurai 26.1 21.25 9.9 12.19 36 33.4413 Nagapattinam 20.25 17.57 7.2 2.36 27.45 19.9314 Namakkal 20.25 13.29 2.7 3.47 22.95 16.7615 Nilgiris 11.7 3.86 2.7 3.25 14.4 7.1116 Perambalur 6.3 4.31 0.45 0.16 6.75 4.4717 Pudukottai 26.1 5.18 17.55 5.82 43.65 1118 Ramnad 14.4 5.59 8.55 3.12 22.95 8.7119 Salem 29.25 13.37 5.85 9.16 35.1 22.5320 Sivagangai 20.25 9.3 2.7 5.38 22.95 14.6821 Thanjavur 26.1 7.9 5.4 4.01 31.5 11.9122 Theni 22.5 12.07 5.85 2.43 28.35 14.523 Thirunelveli 40.5 26.86 13.05 10.61 53.55 37.4724 Thiruvallur 26.1 12.11 10.35 4.87 36.45 16.9825 Thiruvannamalai 27 14.4 10.35 3.73 37.35 18.1326 Thiruvarur 17.55 4.39 5.85 1.59 23.4 5.9827 Thoothukudi 20.25 8.08 4.05 1 24.3 9.0828 Tiruppur 18 1.26 6.3 0 24.3 1.2629 Trichy 23.4 14.43 5.85 7.44 29.25 21.8730 Vellore 33.75 18.25 6.3 2.55 40.05 20.831 Villupuram 33.75 23.26 11.7 7.07 45.45 30.3332 Virudhunagar 21.6 12.11 8.55 5.5 30.15 17.61

Total 777.6 400.54 302.4 166.03 1080 566.57

59


CREDIT FLOW TO MINORITY COMMUNITIES

The progress made by the Banks in Tamil Nadu under Credit Flow to Minority Communities as of June 2009 is furnished below:

Amount in Rs. CroresSl. No.

Name of the Community

Outstanding Position as ofJune 2009

Account Amount1. Muslim 686463 4226.992. Christian 862720 5320.723. Sikh 955 72.054. Zorastrian 255 57.125. Neo Buddist 4037 59.04

Total 1554430 9735.92

Ministry of Finance, Govt.of India has informed that Public Sector Banks have given a roadmap to step up lending to Minority Communities to 15% of Priority Sector Advances by 31st March 2010. On the basis of the targets advised by PSBs State wise target has been fixed and in respect of Tamilnadu State the target for lending to Minorities is fixed at Rs.11892.93 Crores (constituting 12.63% of PSA) for the year 2009-10.

In Tamil Nadu, Kanyakumari District has been identified as a Minority Concentration District and Member Banks are requested to improve credit flow to the clusters of Micro, Small and Medium entrepreneurs of the Minority Communities residing in the district.

Member Banks are requested to submit the details of credit flow to Minority Communities to SLBC on a quarterly basis.

60


BANK FINANCE UNDER HOUSING SCHEME:

In tune with the National Agenda 'HOUSING FOR ALL' Credit Flow to Housing Sector is identified as one of the major thrust areas by the Banks

As per Reserve Bank of India guidelines, each bank should attain a share of 3% of their incremental deposits of the previous year under housing finance. Accordingly, it is estimated that around Rs.1140.30 crores of credit should be extended to Housing Sector from banking system in Tamil Nadu during the year 2009 – 2010.

As per the feedback received from member banks, disbursement to the tune of Rs.346.42 crores has been made during the quarter ended June 2009.

The Bank wise disbursement details are furnished in the Annexure. Other Member Banks are requested to furnish the data to SLBC in time.

61

Annexure

Bank Finance under Housing Scheme – Direct Housing FinanceProgress Report during the quarter ended June 2009

(Rs.in Lacs)Sl.No. Name of the Bank Credit Disbursement

1 Bank of Baroda 4610.302 Bank of Maharashtra 265.003 Canara Bank 6348.064 City Union Bank Ltd. 1759.635 Corporation Bank 866.736 Dena Bank 11.007 Federal Bank Ltd., 1656.008 ICICI Bank Ltd. 799.009 Indian Bank 6697.0010 Indian Overseas Bank 2980.0011 Jammu & Kashmir Bank Ltd. 3.7512 Karnataka Bank Ltd., 58.6813 Oriental Bank of Commerce 165.5414 Pandyan Grama Bank 96.0015 Pallavan Grama Bank 30.2116 Punjab National Bank 519.4517 Punjab & Sind Bank 29.3118 South Indian Bank Ltd. 372.0019 State Bank of Bikaner & Jaipur 169.4320 State Bank of Hyderabad 858.0021 State Bank of Mysore 1800.5922 State Bank of Patiala 326.7223 Tamilnadu Mercantile Bank Ltd 31.6124 Union Bank of India 3182.8725 United Bank of India 69.6326 Vijaya Bank 935.45

Total Direct Housing 34641.96

62

AGENDA No: 11 (A) 119th SLBC

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)

The National Housing Bank has formulated the Golden Jubilee Rural Housing Finance Scheme (GJRHFS) in August 1997 on the occasion of the Golden Jubilee of India's Independence.

As per the feedback received from the member banks, 627 loans amounting to Rs.1043.53 lacs were disbursed under Golden Jubilee Rural Housing Finance Scheme during the quarter ended June 2009 as shown below:

Amount in Rs. Lacs

ParticularsScheduled Castes

Scheduled Tribes Others Total

No. Amt. No. Amt. No. Amt. No. Amt.Total Loans sanctioned during the Quarter

90 99.34 3 0.30 534 957.89 627 1057.53

Total Loans disbursed during the Quarter

90 99.34 3 0.30 534 943.89 627 1043.53

Member Banks are requested to furnish the details of housing loans under Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC.

63

AGENDA No: 12 119th SLBC KISAN CREDIT CARD SCHEME (KCC)

As per the progress report submitted by member Banks, 176275 KCCs to the tune of Rs.670.73 Crores have been issued during the period April 2009 to June 2009.

SLBC has requested the Lead District Managers to submit a Quarterly Progress Report on KCCs containing details like KCCs as at beginning of the quarter, issued during the quarter, position at the end of the quarter and cumulative position since inception of the scheme. The data is required in respect of both crop loans and term loans. Member Banks are therefore requested to arrange to furnish the details on the progress made under KCC to the LDMs concerned to enable consolidation of data at the district level and for smooth flow of MIS to NABARD and SLBC.

Member Banks are requested to furnish the data in the revised format to SLBC on time to enable timely review.

64

PERFORMANCE OF BANKS UNDER KISAN CREDIT CARD SCHEME FROM APRIL 2009 TO JUNE 2009

(Amount in Rs.Lacs)Sl. No.

Name of the BankCrop Loans Term Loans Total

No Amount No Amount No Amount1 Andhra Bank 242 81 0 0 242 812 AXIS Bank 95 196.57 67 220.43 162 4173 Bank of Baroda 406 243.12 12 6.25 418 249.374 Canara Bank 10441 4641.15 39 136.89 10480 4778.045 Central Bank of India 150 35.04 20 4.47 170 39.516 City Union Bank Ltd. 22 15.81 0 0 22 15.817 Corporation Bank 1395 483.14 22 447.6 1417 930.748 Dena Bank 5 3 0 0 5 39 Federal Bank Ltd. 2 12.25 0 0 2 12.2510 HDFC Ltd. 13 32 227 460 240 49211 Indian Bank 8290 2400.36 297 382.59 8587 2782.9512 Indian Overseas Bank 18959 8394 2083 1302 21042 969613 ING Vysya Bank Ltd. 6 4.38 2 1.13 8 5.5114 Karur Vysya Bank Ltd. 52 13.2 3 0.9 55 14.115 Pandyan Grama Bank 4289 653 0 0 4289 65316 Punjab National Bank 428 732.89 0 0 428 732.8917 South Indian Bank Ltd. 8 6 0 0 8 618 State Bank of India 54133 25223 0 0 54133 2522319 State Bank of Mysore 254 233.95 0 0 254 233.9520 Tamilnadu Mercantile

Bank Ltd. 66 24.7 60 23.8 126 48.521 Tamilnadu State Apex

Co-op.Bank Ltd. 64539 17348 1434 306 65973 1765422 Union Bank of India 6758 2340.18 1395 611.38 8153 2951.5623 Vijaya Bank 61 52.39 0 0 61 52.39

Total 170614 63169.13 5661 3903.44 176275 67072.57

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Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

As requested by Ministry of Finance, Government of India, SLBC had requested member Banks to dispose off the pending loan applications with their bank branches expeditiously.

Tamil Nadu Adi Dravidar Housing & Development Corporation Ltd. (TAHDCO) is monitoring the programme in Tamilnadu.

Principal Secretary, Adi Dravidar and Tribal Welfare Department, Govt.of Tamilnadu vide letter dated 12.09.2009 has requested Banks to process the pending applications and sanction loans before 30.09.2009.

Member Banks are requested to co-ordinate with TAHDCO officials and concerned Lead District Managers to rehabilitate all eligible scavengers and their dependants and expedite early disposal of pending applications under SRMS positively before 30th Sept 09 which is the deadline set by Government of India.

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