Minutes of 36th meeting of SLBC Jharkhand held on 09th November’2011
At Hotel capitol Hill, Ranchi

        The 36th meeting of SLBC was held on 09th November’2011 at Hotel Capitol Hill, Ranchi, under the chairmanship of Sri D. Sarkar, Executive Director of Allahabad Bank and was co-chaired by Sri Debashis Gupta, Development Commissioner of Jharkhand.
       Hon’ble Chief Minister of Jharkhand, Sri Arjun Munda was the Chief Guest in the meeting.
       The meeting was attended by Sri D. K. Tiwari, Pr. Secretary to CM, Sri A. K. Pandey, Pr. Secretary( IF & PI), Sri A. K. Singh, Secretary, ( Agriculture and Sugarcane Dev. & Co-operative), Sri A. P. Singh, Secretary (Industry), Sri H. N. Panda, General Manager, Reserve Bank of India, Ranchi, Sri Bibhas Kumar Srivastav, General Manager (PSC), Allahabad Bank , HO Kolkata, Sri D. Chakraborty, Field General Manager, Allahabad Bank, Ranchi, Sri Jiji Mammen, General Manager, NABARD, Ranchi and other senior functionaries of State Government, Controlling Heads of various Banks/Financial Institutions and other agencies. The list of participants is given in Annexure – 1.
Sri D. Chakraborty, Field General Manager, Allahabad Bank, Ranchi, welcomed the dignitaries and participants. He praised the member bankers for their co-operation in conducting 04 regular quarterly meetings of SLBC Jharkhand,  strictly within 45 days of close of each quarter, as per guidelines of RBI. During the period between the 34th  SLBC on 9th August’2011 and the present 36th SLBC meeting, several important directions have been received from MoF, GoI regarding enhancement of pace of Agriculture lending, Financial Inclusion and e-payments of all funds under State & Central Govt. Schemes. The progress was also reviewed by Secretary (FS), MOF,GOI, with the convenor bank of SLBCs at New Delhi on 3rd Nov’2011. He solicited continued co-operation, support and involvement in the smooth conduct of the meeting and for meaningful and vibrant deliberations.
Sri D. Sarkar, Executive Director, Allahabad Bank and chairperson of SLBC welcomed Hon’ble Chief Minister of Jharkhand, Sri Arjun Munda, Sri Debashis Gupta, Development Commissioner and other senior functionaries of State Govt., Controlling Heads of Banks/Financial Institutions and other invitees in the 36th SLBC meeting and sought active cooperation from all the stake holders to resolve the relevant issues pertaining to Banks and the Govt.
             Sri Sarkar in his key note address highlighted the overall performance as well as challenges ahead of Banking sector in the State –

1. C:D Ratio of the State has improved to 56.62% as on 30th September’2011considering “credit as per place of utilization”. The low and stagnant C: D Ratio was the major concern for the Banking sector in the State. This issue was also discussed at length in the meeting of Hon’ble Chief Minister and Hon’ble Governor of RBI with senior State Govt. officials and Bankers held on 14th December, 2010. In terms of direction of that meeting, it was planned to achieve 50.30% C: D Ratio by March’2012 taking into consideration of “credit sanctioned by Bank branches in the state”. Banks have now achieved 50.67% C: D Ratio by September’2011 and this achievement is praiseworthy.

            Sri Sarkar also expressed that looking into prevailing position of the State that there is imperative need to create enabling situation to improve CDR to achieve national benchmark of 60% immediately, for which co-operation is required from State Govt. In certain areas like, Updation of Land record and amendment in Tenancy Act to enable the loan takers to offer their land as  security, availability of village wise list of farmers, waiver of stamp duty on agriculture loan up to Rs.5.00 lacs, revamping of cooperative credit institutions, development of irrigation potential and rural electrification.

1. Priority sector Advance increased to Rs.19164.97 crore as on Sep’2011 from  Rs. 16688.39 crore as of Sep’2010, registering a growth of 14.84% on YOY basis. Share of the priority sector credit stands at 48.74% of Gross credit that is well above the benchmark of 40%. Agriculture credit increased to Rs.4128.66 crore as on Sep’2011 from Rs.3708.16 crore as of Sep’2011, registering a growth of 11.34% on YOY basis. However, the share of Agriculture Credit to total credit is only 10.50% against the Benchmark of 18%, which needs serious attention of all concerned.
2. As the Govt. of India envisaged that all eligible farmers are to be issued Kishan Credit Card in a time bound manner, Banks in Jharkhand issued 3,42,937 KCCs against the annual target of 4.50,100 by the end of Sep’2011. However, out of 39 lakhs farmers in the State, almost 19 lakhs farmers are yet to be covered under KCC/GCC. This needs to be geared up.
3. MSME sector advance grew from Rs.7427.34 crore as March’2011 to               Rs. 8547.25 crore as on Sep’2011,registering annualized growth of around 30%. The share of credit to Micro Enterprises in total credit to MSE is 29.00% as on Sep’2011, which has to reach the targeted level of 55% by March’2012 and 60% by the end of March’2013.
4. Disbursement under Annual Credit plan is Rs.6551.43 crore as on Sep’2011 against the annual target of Rs.15000.00 crore, which constitute 43.68% of annual target. Agriculture is the mainstay of majority of population of the State, therefore this sector needs focused attention of all stakeholders and Banks have made disbursement to the tune of Rs.721.58 crore up to Sep’2011 against the annual target of Rs.2403.00 crore achieving 30.03 %. Credit delivery system should be strengthened by Banks to ensure 100% achievement of ACP’2011-12. However, Sri Sarkar expressed concern over the fact that disbursement under ACP by most of the Private Sector Banks is Zero/ negligible which requires immediate attention by their controllers/higher authorities.
5. Achievement under SGSY (71.34%) & PMEGP (64.17%) is very much satisfactory and there should not be any zero lending Branches under Govt. sponsored scheme. As the Govt. sponsored programme basically aim to provide livelihood to under privileged people of the society to ensure poverty alleviation, more focused attention and well directed efforts is needed by all stake holders to achieve 100% target under such programme.
6. ISHSUP scheme launched by GOI is yet to take up in the State, which needs to be specially looked into by GRDA and NHB.

Financial Inclusion – Focusing to the Financial Inclusion Plan, Sri Sarkar commented that Financial Inclusion Plan envisaged by the Govt. of India with regulatory guidelines/instruction of RBI has assumed the center stage of challenges by the banks to bring the entire population into the banking fold, particularly the under privileged and vulnerable section of the society. As the Financial exclusion being very high, more than 55% in the state of Jharkhand, the task has to be taken up on priority basis by the banks and the State Govt. in regard to:-

1. Providing Financial Inclusion to Identified 1541 village over 2000 population by the end of December’2011, rather than waiting till March’2012. Out of 1541 village 992 village has been covered by the Banks up to Sep’2011, rest of 549 villages should be covered on priority basis by 31st December’2011.
2. As per GOI instruction, the banks to implement the FIP for all villages of the allotted Panchayats following Service Area approach.
3. Banking Correspondents will have to function on a viable basis by taking into consideration all EBTs, Micro Pension and Micro Insurance schemes.
4. Electronic Transfer of funds in respect of all State Govt. and Central Govt. schemes should be put in place on priority basis.
5. Financial Inclusion Plan should not confine to opening of No-Frill A/Cs only. Rather each and every A/c under FIP should be operative in terms of KCC, GCC, Small OD in SB and EBT payments.

Sri Sarkar apprised that during the last half year 56 bank branches were opened and there by the total no of Branches in the state went up to 2136. But in Jharkhand, average population per Bank branch office is very high and in 16 districts concentration of Bank branches is very low. Therefore, branch expansion plan should take up in a massive way, especially by RRBs. Private Sector Banks should also take up service area Bank branches.

1. Commenting on the recovery position, Sri Sarkar expressed his concern over mounting NPA which is Rs.247.34 crores by the end of Sep’2011 constituting 4.29 % of Gross Credit. Timely credit delivery, proper end use and effective recovery mechanism should be put in place by all concerned. State Govt. is requested to extend support for recovery in certificate cases under agriculture and Govt. sponsored schemes.
2. Sri Sarkar also reviewed the functioning of RSETIs. In all 24 districts, RSETIs have been set up, which is really a good achievement but independent directors are not posted in all RSETIs and land allotment by State Govt. is also awaited for 03 RSETIs.

       At the end of his deliberation, Sri Sarkar extended thanks to the state Government and various development agencies for excellent support & Co-operation rendered to banking sector in all the spheres of banking activities. He hoped and requested the same level of mutual co-operation and synergic action amongst the Bankers and various Govt. departments in future.

Hon’ble Chief Minister of Jharkhand, Sri Arjun Munda while addressing the house expressed his pleasure to attend the SLBC meeting for the second time. Sri Munda congratulated the Bankers in Jharkhand that when he attended the SLBC meeting last year on 30th December’2010, the CD Ratio of State was 46.06% and this time it is 56.62%. He described this achievement as encouraging. He reminded the house that in his meeting with RBI Governor and Bankers on 14th December’2010 it was decided to achieve the national benchmark of 60% of CD Ratio and we have to make all out efforts to get this achievement. CD Ratio in the rural areas is 36.20% and this area requires improvement. Although, share of Priority sector advance to total advance in Jharkhand is well above the national benchmark of 40% but the matter of concern is that this percentage slipped from 58.52% as on Sep’2010 to 48.74% as on 30th Sep’2011 and this trend should be reversed. Share of agriculture advance is 10.50% and this is a major concern for all of us. SLBC is the right forum to discuss the issue and find out the way to improve the situation.
        Sri Munda informed that on the ensuing foundation day of the State on 15th November’2011, the next year is going to be declared as “Bitiya Varsh” or ‘Year of Girl Child ’. Therefore, it is necessary to promote women entrepreneurship in next year with a great pace. The share of advance to women in total advance is only 4.56% and a minimum level of 10% to be achieved by next year. Achievement under agriculture sector in ACP 2011-12 is only 30%, which is very unsatisfactory, and this situation needs real improvement. Every Bank should achieve 100% ACP target without fail. Out of estimated 40 lakh farmers in the State a large number of farmers are yet to be provided with KCC. The Govt. of India has also set the target of 100% covering of farmers under KCC. Therefore, concerted efforts by the Bankers & Govt. officials are needed to provide KCC to all farmers in the state. Significant efforts should be taken to facilitate the Agriculture Insurance and formation of SHGs also.
                Commenting on certain pending issues with State Govt., Sri Munda assured that waiver of stamp duty on Agriculture loan up to Rs.05 lakhs, Amendment in PDR Act and Bihar Money Lenders Act will be considered in next Cabinet meeting. For providing one acre of land to RSETIs, only two districts have been left and it will be completed very soon. Expressing concern over non-availability of land records in the State, Sri Munda informed that several measures are in process to complete the task within a reasonable period on priority basis. He also assured that in Jharkhand State, coverage under ‘UID’ (Adhar) will be completed very soon.
            Further, saving is very important in development and increase in rural savings is the real capital. Therefore, saving structure should be strengthened in rural areas and by doing this the State can make prosperity. For improvement of rural entrepreneurship, Jharkraft has proposed to form 50000 SHGs within one year and Banks are requested to facilitate these SHGs in opening of account and financing. International level marketing facilities to the product of these SHGs is needed.
           Hon’ble Chief Minister, Sri Munda emphasized that for the “SARVANGIN VIKAS” of the State, the development and upliftment of rural people is very crucial. The study of village and rural economy is necessary. We have to strengthen the Rural Agro based economy for the complete all round development of State. Maximum utilization of manpower is also very essential and Banks in the State will play a vital role for the maximum manpower utilization. For the development of rural economy priority sector lending will play a crucial role.
            At the end, Hon’ble Chief Minister of Jharkhand called upon the Banks in the State of Jharkhand for collective effort for better result as for striving the possibilities of State Banks will play a very decisive role and State Govt. is also working with determination.  He assured to attend the next SLBC meeting of Jharkhand.
Sri Debashis Gupta, Development Commissioner of Jharkhand and Co- Chairperson of SLBC meeting, in his brief but very useful address focused on the pending issue with State Govt. like amendments in PDR act, Money lenders Act and uploading of agriculture data of the State. He assured the Govt. will address these issues very soon. He informed that Agriculture census by the Govt. is going on and agriculture data will be uploaded by the end of February’2012.
             He also sought co- operation from banking sector in forming of 50000 SHGs through ‘Jharkraft’. He described ‘Jharkraft’ as a vibrant organization and requested Banking sector in Jharkhand to support these SHG in opening of account and financing.
Sri H. N. Panda, General Manager, Reserve Bank of India, Ranchi, in his deliberation depicted some of the achievement of banking sector in Jharkhand. According to him during last one year banks in Jharkhand worked very diligently. After the visit of RBI Governor in the State in December’2010, some very good progress has been made.  In September’2010, the CD Ratio of the State was 46.06% and RBI Governor said bankers to sit together and set a ‘realistic yet challenging target’ of CD Ratio in the State. We all put our hands together and set a target of CD Ratio of 50% plus by March’2012. He expressed his pleasure that in Sep’2011, the CD Ratio of the State is 56%. He said that every one in this meeting will fell happy that we are contributing our might for the development of the State.

Sri Panda categorically compared the CD Ratio of Jharkhand with neighboring states. The CD Ratio of Jharkhand is much better than Bihar and Chhattisgarh and we are trying to breach the barrier of 60%. The CD Ratio of Jharkhand is little less than of Bengal (62%) and much less than of Orissa (70%). Jharkhand has much higher per capita Deposit, more than Rs.24000 in contrast to Rs.11000 of Bihar. Our deposit is double of Bihar’s deposit figure. Jharkhand has also double of Bihar’s per capita deposit. Jharkhand has also a much higher per capita advance than of Bihar. Therefore, all credit goes to banking sector in Jharkhand for their persistent effort for this achievement.
Sri Panda reminded that last year the then Development Commissioner and present Chief Secretary, GOJ,  Sri S. K. Choudhary has set a target for opening of 260 new bank branches in the State and 192 branches have been opened up to September’2011. He desired speedy branch expansion in the State.
           Commenting on the ACP target, Sri Panda hoped that we are well on the way to achieve the ACP target of 2011-12, as up to September’2011, the achievement under ACP is 43.68%, of yearly target and this was also one of the major commitment given to the RBI Governor, as he viewed during his visit in the State that ACP target should achieved fully.
       In the area of Financial Inclusion, Sri Panda complimented the bankers in the State for opening of sixty lakhs ‘No frill Account’ means 18.5% of State population has been brought under the Banking fold and this movement has to go forward till 100% Financial Inclusion is achieved.
Sri Jiji Memmon, GM, NABARD, Ranchi, in his address congratulated the Banking sector in Jharkhand, for the good work done in CD Ratio and achievement under ACP. He also expressed his concern over certain issue like 2% growth under agriculture sector despite of very good monsoon and expected bumper crop after several year and negative growth under Priority Sector lending. He called upon the Banks for financing 100000 JLG during current FY. Sri Memmon requested the banks to rout their credit through identified Primary Co-operative society and LAMPS. Coming on to ‘Jharkraft’, he described it as a most entrepreneur institution in Jharkhand and ‘Jharkraft, is the promoter of 50000 SHGs proposed to form this year and 50000 by next year. He requested the Banks in Jharkhand to support this project.

     Thereafter, agenda wise discussion was initiated by Sri Bibhas Srivastav, General Manager (PSC), Allahabad Bank, Head office.

AGENDA NO-1- CONFIRMATION OF THE MINUTES OF 35th (Special)  STATE LEVEL BANKERS’ COMMITTEE MEETING ON CREDIT FLOW TO AGRICULTURE SECTOR HELD ON 07 SEP’ 2011.

The House confirmed the minutes of 35th (Special) State level Bankers Committee meeting on credit flow to Agriculture sector held on 9th May’ 2011.

AGENDA NO-2- Follow up action on compliance of the decision taken in previous SLBC meetings

2.1. Issues pertaining to State Government –

2.1.1. Updating of Land Records – During the discussion Hon’ble Chief Minister Sri Arjun Munda and Development Commissioner, Sri Debashis Gupta informed that by the end of February’2012, the Land records will be uploaded with G.I. mapping.

2.1.2.Waiver of Stamp duty up to Rs.5.00 lakhs for  Agriculture advance 2.1.3. Amendment in PDR act 2.1.4 Amendment to the Bihar Money Lenders Act

Hon’ble Chief Minister informed the house that these matters will be considered in next cabinet meeting, therefore, no separate discussion over the matter was required.

2.1.5. Formation of State Co-operative Banks in Jharkhand –
        Sri H. N. Panda, GM, RBI, informed that Bihar Govt. has consented for transfer of 05 branches of Bihar Co-operative bank to Jharkhand and after taking those 05 branches the Jharkhand Co-Operative Bank will start functioning.     
           Responding to the issue Sri A. K. Singh, Secretary, co-operative appraised the house that State Govt. has constituted the Board of Jharkhand State Co-operative Bank and it had its regular meetings also. But Bihar Govt. is not responding to the request to transfer the branches and there is no legal obligation on them of doing the same. Therefore, in larger interest of poor farmers of the state, 09 branches of DCCBs be upgraded as State Co-operative Bank by obtaining license from RBI through NABARD. Sri H.N. Panda, GM, RBI informed that without license for Banking operation, DCCB  branches can do only funding to PACS and there is no time limit for this. Therefore, it is advisable to take 05 branches from Bihar State Co- Operative Bank to start functioning of Jharkhand State co-operative bank as law permits that in case of bifurcation of an existing entity that entity can start banking operations after submitting application for license.

2.1.9. Unbanked Block – In the state of Jharkhand only Gudri is un banked block and BOI is all set to open a branch there.

2.1.8. Allotment of Land to RSETIs - As per Govt. of Jharkhand in only 02 Districts land is not allotted and Hon’ble Chief Minister Sri Arjun Munda assured that in all districts the allotment of land will be completed very soon.                                                                                                                                      -  03                                                                                                                                                                               02

2.2.1. Issues pertaining to Banks –

2.2.1. Branch Expansion in Rural Areas:-  Backlog of new Bank branches opening for 2010-11 was decided to be opened during Current FY. Still 82 backlog bank branches are to be opened by the respective banks. Jharkhand Gramin Bank informed the house that by the end of December’2011 they will open all the 29 allotted branches. Vananchal Gramin Bank also assured that by March’2012, all the 19 allotted branches will be opened.

AGENDA No. 3 KEY INDICATORS OF ALL SCHEDULE COMMERCIAL BANKS

3.1. Overall position under Key Business parameter

• Deposit of the state grew by Rs.15696.96 crore registering a growth of 24.20 % on YOY basis.
• Advance of the state grew by Rs.10803.65 crore showing a growth of 37.89% on YOY basis.
• Priority sector Credit constitutes 48.74% of Gross Credit (Norm: 40%)
• Share of advance to Weaker Section 11.21% (Norm: 10%)
• CD ratio of the state has reached 56.62% as on September’11.
• Agriculture credit being 10.50 % of Gross credit is below the benchmark norm of    18 % and is showing a declining trend in percentage.
• Share of advances to women are on decreasing trend in percentage term and reached to 4.56%. Special effort is needed to extend more credit to women and reach to 10% by the end of the year.

3.2. C :D Ratio of the State as on 30th September’2011
The CD ratio of the state has increased from 46.06 % as of Sep’10 to 56.62 % as on Sep’11’considering “credit as per place of utilization” as per RBI norm. However, in pursuance of the decision taken in the meeting of the RBI Governor and Chief Minister of Jharkhand with senior State Govt. Officials and Banks at Ranchi on 14.12.2010, it was decided in 32nd SLBC on 09.02.2011, to achieve                                                        50.30% C: D Ratio in the State by March’12, considering “credit as per place of sanction”.

• Quarterly projection vis-à-vis achievement of C : D Ratio(with “credit as per place of sanction”)

(Amt. in crore)

Quarter	Projection			Achievement
	Deposit	Advance	C: D Ratio	Deposit	Advance	C: D Ratio
June’11	73837	33895	45.91	73600.23	35632.56	48.41
Sep’11	76768	36005	46.90	80541.02	40815.40	50.67
Dec.’11	79109	37750	47.72
March’12	81093	40793	50.30

•  Banks achieved projected C : D Ratio for september’2011 :-

Name of Bank	CD ratio Projection for Sep'11	CD ratio Achievement  Up to Sep'11
Allahabad bank	52.44%	52.61%
State bank Of India	51.73%	60.49
Bank Of India	46.93%	51.57%
Indus ind Bank	82.51%	108.29%
BOB	52.37%	52.81%
AXIS Bank	62.89%	64.83%

• Banks not achieved projected C: D Ratio : Indian Bank 41.27%, Dena bank 38.59%, Vananchal Gramin Bank 38.18%, Karnataka Bank Ltd. 37.93%, Bank of Maharashtra 36.16%, Syndicate Bank 35.67%, ICICI bank 35.25%, Canara Bank 31.8%, Indian overseas Bank 31.46%, Union bank of India 30.02%, Central Bank of India 29.65%, United Bank of India 28.83%, Andhra Bank 27.80%, OBC 26.67%, Vijaya Bank 25.76%, Federal Bank 24.94%, UCO Bank 22.87%, Cooperative Bank 21.57%, SBBJ 21.27%,Corporation Bank 19.09%, J&K Bank 15.51%, South Indian Bank 14.11%, Kotak Mahindra bank 1.83%, and Laxmi Vilash Bank 0.06%.
• Sri D. Sarkar, chairperson of SLBC expressed displeasure over some Banks for not achieving their own projected quarterly CD Ratio and requested the concerned controllers to strengthening monitoring for improvement.
• As regards very poor performance of some Private Sector Banks, it was decided to hold a special review by SLBC sub-committee with the controller of such Banks by Dec’2011

3.3. Population Group wise distribution of C: D Ratio

• The C: D Ratio in rural area is 36.20%, in Semi – Urban Area is 37.54% and in Urban area is 62.04%.
• In rural areas, CD Ratio has increased from 34.41% as of Sep’2010 to 36.20% as on Sep’2011.
• Controlling Heads of the member Banks are required to closely monitor the achievement of the targeted C: D Ratio for FY 2011-12 through incremental growth of advances and 100% achievement of ACP targets.

AGENDA NO. 04 – BRANCH EXPANSION

A target was decided for opening 216 Bank Branches in Jharkhand during FY 2010-11. During FY 2010-11, 136 branches were opened and during half-year ended Sep’2011, 56 Bank branches were opened.
The total No of Bank Branches in the State of Jharkhand as on 30-09-2011 stood at 2136. Since some Banks have opened more than the targeted number of branches for 2010-11, the bank wise total backlog target for branch opening stands 82 as on 30th Sep’2011.
JGB and VGB are having major backlog and both banks have promised to clear the backlog by Dec’2011 and March’12, respectively.
All other Banks are advised to expedite opening of targeted branches.

AGENDA NO. 5 – REVIEW OF ACHIEVEMENT UNDER ACP 2011-12

• Over all achievement under ACP at the end of 2nd quarter of current FY stands at 43.68% of the yearly target.  Achievement under Agriculture sector is 30.03% of annual target, whereas achievement under MSE is 42.30%.
• The overall achievement of 43.68% is more then of second quarter of last financial year.
• East Singhbhumi and Bokaro Districts have achieved more than 50 % of ACP target for FY-2011-12.
• The Districts which have performed extremely poor are -

Jamtara – 14.54%, Pakur – 18.48%, Simdega – 18.86%, Dumka-18.88% Gumla – 21.41% Saraikela -24.80% and Kunti- 24.97%.
LDM should convene monthly BLBC/DLCC to chalk out suitable strategy to improve the position.

• The Banks which have Zero Percent achievement under ACP    during 2011-12 are State Bank of Patiala, Axis Bank, Indus Ind Bank, Yes Bank,  Kotak Mahindra Bank, Laxmi Vilas Bank and Punjab & Sindh  Bank.
• The Banks which have performed extremely poor in ACP are-Bank of Maharashtra (2.24 %), Andhra Bank(2.47%) and Dena Bank(7.84 %).
• Punjab & Sind Bank, Kotak Mahindra Bank, ING Vysya Bank and Indus Ind Bank have not submitted the progress data.

Shri D.Sarkar, Chairperson of SLBC took a detailed Bank-wise review. He expressed his concern over poor lending under ACP by Pvt.  Sector Banks and advised that controllers of such Banks should be sent written communication by Convenor Bank. Detail deliberations were made in the meeting for improvements in lending especially under agriculture lending. As regards, non submission of SLBC data and non- participation by some member Banks, it was decided to refer the matter to the corporate office of such Banks.

AGENDA NO. 6 – REVIEW OF LENDING

6.1. Agriculture and KIshan Credit Card, including compliance report on action plan as advised by GoI on lending to Agriculture sector :-

• Total agriculture credit of all Banks in the state is Rs.4128.66 crores which constitutes 10.50% of the gross credit. Focused attention of all the stake holders i.e. state Govt., Banks, NABARD and other agencies is needed.
• During the first half year of 2011-12 Banks in Jharkhand issued 3,42,937 KCC against the annual target of 4,50,100 which constituted 76.19% of annual target.
• While nationalized banks have achieved 84.45 % of the Annual target of issuance of KCCs for the financial year 2011-12, Pvt. Sector Banks have achieved only 14.93 % of the Annual target. Both the RRBs achieved 48.04 % of the Annual target of issuance of KCCs for the financial year 2011-12.
• Co-operative bank has made excellent performance and against the target of issuance of 2000 KCC up to 31st Mar’12, total 6009 KCC cards were  issued  till 30th Sep’2011, which is appreciated by SLBC.
• Zero lending Banks in KCC

Punjab and Sind Bank, State bank of Bikaner & Jaipur, Corporation Bank, State Bank of Patiala, Bank of Maharastra, IDBI Bank, Fedral Bank, Karnataka bank Ltd, Axis Bank, Indus Ind bank, Jammu & Kashmir Bank, Yes Bank, Kotak Mahindra Bank, South Indian Bank and Laxmi Vilas Bank.

• Performer Banks are-

Name of Bank	Annual Target(No)	Achievement	% of achievement
State Bank of India	120000	130000	108.33 %
Bank of India	110000	89645	81.49 %
Punjab National Bank	12000	21404	178.36 %
Allahabad bank	35000	22519	64.34 %
Union Bank of India	10000	7363	73.63 %
Cooperative Banks	2000	6009	300.45 %

6.1.2. Compliance report of Action Plan as advised by MOF, GoI. –
The action points advised by GOI to enhance the pace of Agriculture lending were reviewed in details. Printing and supply of ‘Common Application form’ in all districts, Assignment of group of villages to field functionaries are yet to be completed.
In absence of land records in the State of Jharkhand, Banks to continue financing KCC up to Rs.50000/- without insisting for LPC.
Special SLBC meeting was conducted on 07th September’2011, and meeting of ‘Small Group of Bankers’ were also held at frequent interval. As decided, Kishan Melas were organized by 05 Banks viz PNB on 09.09.2011 at Tamar block, Ranchi, SBI on 20.09.11 at Daltanganj in Palamu, Allahabad Bank on 22.09.2011 at Devipur in Deoghar, Canara bank on 24.09.2011 at Tant Nagar in Chaibasa,  BOI on 30.09.2011 at Lohardaga.  NABARD is yet to organize such Kishan Mela.
“Village wise list of farmers” to be provided to the Bank (as per GOI Letter No. D.O. No.1(4)/2011-CP dated 19.08.2011) could not be effected due to non availability of such list at the Block/Circle office level.
6.2. Finance to Micro & Small Enterprises (MSE) and MSME Enterprises –

6.2.1. Finance to MSE (Priority Sector)

• Outstanding position of Micro Enterprises sector as on Sep’2011 is Rs.2482.66 crore, out of which Rs. 776.46 crore is under Manufacturing Sector and           Rs. 1706.20 crore in Service Sector.
• In small enterprises Manufacturing Sector outstanding is Rs. 4127.67 crore and in Service Sector the outstanding is Rs.1936.91 crore.
• Thus, total advance under MSE is Rs. 8547.24 crore as on Sep’2011.
• Share of credit to MICRO Enterprises in total credit to MSE secor as on Sep’2011 constitute only 29.02%.
• Controllers of all banks are advised to increase the share of micro credit in overall credit to MSE sector in order to achieve the stipulated target of 55 % by Mar’12, and 60% by March’2013.
• Credit flow to Medium enterprises (NPS) at the end of Sep’2011 is Rs. 1134.34 crore.

6.3. Education Loan –

• Performance of Banks in Jharkhand under Education loan sector is praiseworthy as during the Current FY in 6584 Account Rs.416.12 crore has been disbursed.
• Outstanding position as on 30th Sep’2011 is Rs.1330.26 crore in 42811account.
• Under central scheme, Interest Subsidy is provided for the period of moratorium on Education Loan i.e course period plus one year or six months after getting job, whichever is earlier, on loans taken by students belongs to economically Weaker Sections(Annual gross parental/family income from all sources up to Rs.4.5 lakhs per year),from scheduled banks under the education loan scheme of the India Banks’ Association , for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India. Income proof is required for interest subsidy and in Jharkhand GOJ has notified SDO as the competent authority in each subdivision for issuance of such certificate.
• All member Banks are advised to pass on this benefit to all the eligible students.

6.4. Housing Loan –

• Housing loan outstanding as on 30th Sep’2011, is Rs.2666.53 crore in 46896 accounts. Disbursement under ACP 2011-12, is Rs. 252.95 crore in 2306 accounts.
• In the union Budget of 2011-12, the scheme of 1% interest Subvention is liberalized and extended to all Housing Loan up to Rs. 15 Lakh, where the cost of house does not exceed Rs.25 Lakh. This scheme is not applicable to NRI, for construction of Farm house, and staff Housing Loan.
• Controllers of all the Banks are advised to pass these benefits to all eligible Housing Loan customers.
• The progress under’ Interest subsidy scheme for Housing to Urban Poor’ (ISHUP), is ‘Nil’. The Scheme launched by the Govt. of India for urban poor to access affordable loans with subsidy support for housing could not be implemented in the state during 2009-10 and 2010-11.State Govt. has notified Greater Ranchi Development Authority (GRDA) as implementing agencies for the scheme through scheduled commercial Banks, Housing Finance Companies registered with NHB. The Implementing agency needs to take up the scheme. Accordingly the matter was taken up with G.R.D.A for sponsoring the loan application to banks for lending under the scheme, but it is yet to take up. National Housing Bank (NHB) , has also been requested to take-up the matter with the implementing agency and organized one day seminar /work shop at Ranchi to create awareness amongst the concerned   Govt. Departments and Bankers’ for lending under the scheme.

6.5.1. Artisan Credit Card (ACC) and 6.5.2. Swarojgar Credit Card (SCC)
Overall progress under these schemes may be considered satisfactory. However, participation is needed by the RBBs, Private Banks and some of Public Sector banks.
6.6. Credit Flow to special Category of Borrowers –
The amount of credit flow to minority community has increased by Rs.163.78crores during the half year ended 30th September’2011. The share to priority sector credit has reached to 8.31% which needs substantial improvements so as to reach benchmark level of 15% of priority sector credit.
During the half year period outstanding credit to women has increased over
Rs. 25.19 crore but it has decreased in percentage term from 5.33% to 4.55% , The Benchmark of 5% lending to women need to be maintained and surpassed. Special efforts are needed to enhance credit flow to women in Jharkhand to achieve 10% by next year.
Banks are required to accelerate DRI lending to achieve 1% of aggregate advances of the preceding year. Focused attention need to be given to urban & rural poor. Beneficiaries of Indira Awas Yojana should specially be assisted under DRI scheme.
The over all credit to SC/STs has decreased by Rs.826.41 crore (from Rs.2891.55 cr to Rs.2065.09cr) during the half year ended Sep’11 and the share of credit has decreased from 8.71 % to 5.25 %, which is unsatisfactory.

AGENDA NO. 7 – REVIEW OF PROGRESS UNDER GOVT. SPONSORED SCHEME FOR THE YEAR 2011-12 AS ON 30TH SEP’2011

The progress under various Govt. sponsored scheme viz. PMEGP, SGSY etc was not encouraging. Special attention and priority to be accorded by the Banks to achieve 100% target under the scheme. The Chairperson of SLBC advised the controller of all Banks to monitor disposal of all Govt. sponsored proposals especially SGSY & PMEGP strictly as per RBI stipulated time frame. Sponsoring of sufficient number of proposals under SGSY & PMEGP is needed by implementing agencies of the State Govt. to meet 100% achievement in FY 2011-12
         Under PMEGP Scheme, it is observed that huge gap in disbursed cases and subsidy released by Nodal branches for the FY 2010-11. Sri A. P. Singh, Secretary, Industry, GoJ, informed the house that current FY 2011-12 is the terminal year for PMEGP scheme and margin money balance with Nodal Bank will be withdrawn on 01st April’2012, through e-transfer by the KVIC, Central office, Mumbai. No subsidy amount will be permitted to be released by the nodal banks to the financing banks after 31st March’2012. Therefore, all the financing banks are advised to submit the margin money claims to their concerned nodal banks well in advance.

AGENDA NO. 8 – FINANCIAL INCLUSION

The Bankwise/Districtwise/Quarterwise outlet modelwise matrix was finalized for providing Banking outlet to 1541 identified villages with population over 2000 by 31st March 2012. It was advised in the 34th SLBC Meeting held on 9th August, 2011,to cover all 1541 villages by November, 2011 i.e. before target date of March, 2012. Till September, 2011 total 992 no of villages have been covered against the target of 1226 villages. Banks should make the endeavor to cover all the allotted villages within Nov’11, i.e. before the target date of 31st March2012.
The progresses under various parameters are as under:-

Smart card issued (cumulative up to 30.09.2011)	2,27,727
No Frill accounts(cumulative up to 30th sep’2011	60,78,196
GCC issued	31,782
BC appointed	904

 Strategy and Guidelines on Financial Inclusion – as per Ministry of finance, GOI, letter
            D.O.No. 1(4)/2011-CP dated 19th August, 2011
            F.No.21/13/2009-FI(Pt) dated 7th September, 2011
            F.No.11/4/2011-FI dated 24th October, 2011
As per instruction of Ministry of Finance, GOI, Service Area approach would be adopted for coverage of entire country for financial inclusion. Each DCC will prepare a plan in a specified format (Annexure- A) , changing in existing allocation where ever required and could be finalized at the level of DCC and the same will be approved and finalized by SLBC. As Gram Panchayats are at the centre of the various development and welfare scheme, bank to whom the areas under Gram Panchayat’s are allocated would be responsible for the financial inclusion activities in such areas. However, residents would be free to approach any bank within or outside the service area for any banking services. GoI vide letter no. F.No.11/4/2011-FI dated 24th October, 2011, advised to upload the information on Panchayat/village allocations to Banks at the district level web site which has been duly percolated to LDMs and State Govt. for necessary compliance.  Sub committee of SLBC is requested to review and confirm compliance.

AGENDA NO. 9 GREEN INITIATIVE e - payment

Ministry of Finance, GoJ advised that payments to be made to beneficiaries in respect of all scheme of GoI and State Govt.,no payments to be made or received through cheques except from such institutions which do not have core banking facilities w.e.f. 01st October’2011. The convener bank of SLBC has been advised to co-ordinate implementation of aforesaid e-payments by banks. The decision of GoI, on e-payment w.e.f. 1st October, 2011 has been conveyed to all member banks and discussed in the meeting of Small Group of Bankers. A meeting was convened by The Principal Secretary, IF & PI, GoJ, with various departments of GoJ and major Banks, wherein identification of the schemes by State Govt. Departments was discussed. Readiness of Banks to open No-frill A/Cs using simplified A/c opening form was also conveyed. In the special SLBC meeting held on 7th September, 2011, the matter was discussed and was advised to be further reviewed in the Banker’s Small Committee meeting as well as FIP sub-committee of SLBC. The FIP sub-committee has submitted the recommendation to GoJ on 21.09.2011. In terms of RBI & GOI instructions, the concept of “One District, many Banks, One leader Bank” should be adopted and no other approach to be adopted.

AGENDA NO. 10 – RSETIS

       Setting up of functional RSETIs in all the Districts should be the priority agenda of all the involved Banks. The Development Commissioner, GOJ, informed that in 02 district land is not allotted to RSETIs but he assured to complete the formalities very soon. Directors of the RSETIs should take up the matter with concerned district authorities for allotment/transfer of land. All the sponsoring banks are requested to appoint permanent director in RSETIs for conducting regular training programme.

REVIEW OF NPA/ RECOVERY MATTERS

The recovery under Priority sector is 63.92 % and recovery under Govt. sponsored schemes is 45.06% as on Sep’11. The overall NPA (including written off debt) has mounted up to Rs.1687.62 crore as on Sep’2011, from Rs.1440.28 crore  as on Sep’2010 , which is a matter of concern as it has direct impact on credit flow. The number of certificate file cases increased from 91,085 as on
March’11 to 97,571 as on Sep’11, which indicates that disposal of certificate cases is very poor. The overall recovery position of the bank loans in the state of Jharkhand is extremely poor and deteriorated during the year 2011-12. The entire recovery mechanism including the legal framework needs to be revamped in the State of Jharkhand. Improvement in recovery scenario is pre requisite for recycling of bank loan and increased credit flow under priority sector, Govt. sponsored schemes etc.

AGENDA NO. 12 - FUNCTIONING OF VARIOUS SUB- COMMITTEES OF SLBC

In pursuance of the decision taken in 33rd SLBC meeting held on 9th May’11 presently 09 (nine) sub-committee of SLBC is functional. Action points decided in various sub-committees should be followed at appropriate level for implementation. The convener of the respective sub-committee requested to convene the meeting at least once in a quarter or at more frequent intervals. The minutes should be placed in subsequent SLBC meeting. In addition to the aforesaid regular sub-committees, Bankers’ Small committee was constituted in terms of instruction of the Govt. of India letter dated 17th August, 2011. Decisions and action point in the various committees need be complied be the concerned institutions/ organizations/ departments etc.

AGENDA NO. 13 - MISCELLANEOUS

13.A. Calendar for holding SLBC meeting for calendar year 2012 –
As advised by the RBI vide letter no. RPCD.CO.LBS.BC.No.44/02 19.10/2011-12 dt. 29.12.2010, the schedule for holding SLBC meetings should be drawn in advance for the entire calendar year for blocking the future dates of senior Govt. officials and Bankers. Accordingly, the schedule for the calendar year 2012 was approved in the SLBC meeting, which is as under:-

For the Quarter ended	December,2011	March,2012	June,2012	September,2012
Proposed date	9th Feb,2012	9th May,2012	9th Aug,2012	9th Nov,2012

13. B. Convergence of sub – committee/state level meetings –
In order to ensure proper participation of State head (2nd man in his absence) for effective discussion in such committee/sub-committee meetings, it has been decided to converge 4-5 meetings in a single day.
SLBC convener Bank should co-ordinate holding such meetings.
13. C. scheme for poultry venture Capital fund (subsidy) –
In respect of the revised scheme of Poultry Venture Capital Fund (Subsidy) mobilizing and sponsoring of application for bank finance from prospective promoters should be considered in the sate of Jharkhand. The progress will be reviewed in the meetings of the sub-committee on Agriculture and Allied activities.
13. D. Disposal of application seeking finance from Public Sector Banks:-
The Ministry of Finance, Department of Financial Services, GoI, has advised vide letter No. F.No.7/99/2011-BOA dated 22nd September, 2011, that in respect of the projects sanctioned by the banks but disbursement is pending for want of clearances from various agencies/departments of State Govt. will be taken up by the SLBC convener bank for early clearance of the pending projects.  The list of such projects sanctioned by the banks/FIs, but pending implementation (disbursement) for want of clearances may be furnished by banks/FIs with the details of the clearances awaited, for further necessary action.
13. E. SHG – Bank linkage intensification programme, HARSH :-
NABARD, Ranchi has advised that, one SHG-Bank linkage programme named ‘HARSH’ has been formulated in co-ordination with Jharkhand Silk, Textile and Handloom Development Corporation Limited (JHARCRAFT). The objective of the programme is to promote and bank link 100000 new SHGs in the state of Jharkhand and to provide these SHGs livelihood activities support within a period of three years i.e. up to March, 2014.The banks are advised to open the SB Accounts of the SHGs to be formed for financing. NABARD is requested to provide the detailed modalities and frame work for financing by Banks.

AGENDA NO. 14. ANY OTHER MATTER WITH PERMISSION OF THE CHAIR

14.1. Nomination of ‘Nodal Officer’ by MoF,GoI :- Ministry of Finance, Govt. of India, vide office memorandum no. F. No. 2/6/2011-FI dated 20th September, 2011, has advised nomination/ allocation of States/UTs among Director/Deputy Secretary for State Level Bankers Committees (SLBCs).
Sri A. Bhattacharya, Joint Secretary, MoF, GoI, has been nominated as nodal officer for the State of Jharkhand.
14.2. Meeting of Secretary(F.S.) MoF, GoI, with Convener Banks of SLBC on 03.11.2011 at New Delhi :- The Secretary(FS),MoF, GoI convened  the meeting with Convenor Banks of SLBC which was inter-alia attended by Shri Alok Nigam(J.S), Umesh Kumar(J.S), Shri Rakesh Singh AS(F.S) and Dr. Alok Pandey, Director, DFS.            On behalf of Allahabad Bank, representing Convenor of SLBC for Jharkhand, Shri D. Chakraborty, General Manager, Ranchi attended the meeting.
In pursuance of the discussions held in the aforesaid meeting, the following action points requires compliance
A - KYC Requirement and facilitating opening/operation of accounts of the bank customers (in terms of GOI letter No. F No.31/3/2011-BO.11 Dated 22.09.2011)

• in cases of close relatives e.g. wife, son, daughter and parents etc who live with husband, father/mother and son, as the case may be, the bank can obtain an identity documents and utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her.
• The PSBs may consider extending full operational facilities to the spouse staying at different stations. The husband and wife both can access most of the normal banking services while staying at different places by using ATM/Debit cards and mobile banking for cash withdrawals , purchases/ merchandising services, etc and most of the other services, such as , purchase of draft, transfer of funds , utility bill payments, purchases  etc by using “on-line” banking facilities.
• It has been decided that all PSBs provide account portability to their customers, whereby, a customer desirous of shifting his/her account to another branch of the same bank or some other bank need not be required to submit KYC documents afresh.
• To achieve the objective of Universal Financial Inclusion and to minimize inconvenience to the prospective customers, RBI has issued guidelines on “Small Deposit Accounts” providing relaxed KYC requirements, whereby, such accounts may be opened provided the “photograph of the customer who proposes to open the account and also his address need to be certified by introducer, or any other evidence as to the identify and address of the customer to the satisfaction of the bank.

Sensitization of the Grass root level Bank officials on the above areas through District level meetings. Special drive should be taken up by banks for opening accounts of migratory labourers especially in Metropolitan/Urban areas.
B. Financial Inclusion Plan:- Implementation of financial inclusion guidelines as per the plan of each district (approved by DCC) as per GOI letter no. DO. NO. 1(4) 2011-CP dated 7th Sep’11 should be implemented in right sprit. Branch officials must visit service area villages at least once in a week to patronized Business Correspondence (BC) as the effective banking outlet. Service Area Plan of each district should be uploaded in the district level web site as per instruction. FIP implementation for villages with population over 2000 should be completed before 31st Mar’2012. Massive drive for opening of accounts under FIP should be taken up by all Banks. Accounts opened under FIP should not be allowed to become in-operative. RRBs should take up massive branch expansion plan, expectedly at 10 % increase and Private Sector Banks to open service area branches.

C.   e- payment and EBT:-In respect of the state where the EBT has not yet been fully implemented should be taken up on priority basis and intensified campaign for all section of customers should be taken up for minimizing/discontinuing issue of cheques.
“One District many Banks One leader Bank” model to be adopted for implementation of EBT and its convergence with the financial inclusion plan as per MOF, GOI letter No.  F.No.21/13/2009-F1(PT) dated07.09.2011  

Implementation of the strategic guidelines will be reviewed on ongoing basis by the FIP Sub- Committee of SLBC, which stands reconstituted as under:-
Name of Committee- FIP & EBT subcommittee of SLBC
Chairperson – Dev. Commissioner of Jharkhand (Convener- SLBC convener Bank)
Members of the committee:- Principal Secretary, (PI & IF), Secretary, (Rural Development), Secretary, (Welfare),GOJ,  RBI, NABARD, Nodal officer of both Public Sector Insurance Co.( life & Non life),SBI, BOI, PNB, Canara Bank, Union Bank and  JGB.
Periodicity of meeting: Monthly on 5th day of each month (Next working day if 5th is holiday).
D. Agriculture Credit to Farmers:- the Banks should ensure that every non defaulter farmers of the country get the benefit of KCC and other agriculture credit facilities on priority basis.
E. - Swavalamban Scheme- New Pension Scheme (NPS) by GOI:- GoI has announced “Swavalamban Scheme “in the budget for 2010-11, for the workers in informal sector to mitigate the longevity risk and encourage them to save for their retirement. The scheme will be implemented through bank who will act as point of presence (POP).
The Meeting ended with vote of thanks by Sri Tarlochan Singh, Dy. General Manager, Bank of India.