Date : 30.03.2011 Time: 11.00 A.M. - slbcap.nic.in SLBC of AP Meeting.pdf2 173rd Meeting of the SLBC of Andhra Pradesh was conducted on 30.03.2011 at Jubilee Hall, Public Gardens,

SLBC of Andhra Pradesh Convenor: Andhra Bank

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Proceedings of

173rd Meeting of SLBC of Andhra Pradesh

Date : 30.03.2011

Time: 11.00 A.M.

Venue : Jubilee Hall, Public Gardens , Hyderabad

STATE LEVEL BANKERS’ COMMITTEE OF A.P

CONVENOR :: ANDHRA BANK

Head Office, Andhra Bank, Dr.Pattabhi Bhavan, Saifabad, Hyderabad - 500 004

Phone : 040-2323 1392(D) 2325 2000 Extn :2375, 2387

Fax : 2323 4583 & 23232482

Email :[email protected]

Visit us at: http://www.slbcap.nic.in


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173rd Meeting of the SLBC of Andhra Pradesh was conducted on 30.03.2011 at Jubilee Hall, Public

Gardens, Hyderabad at 11.00 a.m.

Sri R. Ramachandran, President of SLBC of AP and Chairman and Managing Director of Andhra Bank extended a warm and hearty welcome to all the participants of 173rd meeting of SLBC of Andhra Pradesh. Hon’ble Chief Minister of Andhra Pradesh Sri N. Kiran Kumar Reddy; Hon’ble Ministers; Sri S.V. Prasad,

IAS, Chief Secretary; Principal Secretaries, Secretaries, Commissioners, Directors, Heads of Departments

of Govt. of AP; Officials from Government of India and Andhra Pradesh; Sri A.S. Rao, Regional Director,

Reserve Bank of India; Executives from Reserve Bank of India; Mrs. Renu Challu, M.D, SBH; Sri Anil

Girotra, Executive Director, Andhra Bank; Sri Rakesh Sharma, CGM, SBI; Sri P. Mohanaiah, CGM,

NABARD; Executives from other Banks; Chairmen- RRBs; Lead District Managers attended the meeting.

The detailed list of participants is enclosed.

In his welcome address, Sri Ramachandran touched upon the following points:

Natural calamities

He has drawn the attention of the house to the effects of heavy rains and floods in the State during

November-December, 2010 and the steps already initiated by the banking system. He informed that

Banks have rescheduled crop loans to the extent of Rs. 777 Cr. as per the provisional information

received. He informed that as per RBI guidelines, the rescheduling process is to be completed within

three months from the date of occurrence of the calamity and the Government has requested for

extending the date.

Banking Key Indicators in Andhra Pradesh as on 31.12.2010

Sri Ramachandran informed that the C.D. ratio of Andhra Pradesh stood at 116.76% as on 31.12.2010 as

against the minimum RBI stipulation of 60% and is one of the highest in the country. The Priority Sector

advances at the end of December, 2010 were Rs.1,46,028 Crores constituting 47.55% of advances against

minimum RBI stipulation of 40%. Agricultural advances as at the end of December, 2010 were Rs. 80,252

Crores, constituting 26.13 % of total advances as against minimum RBI stipulation of 18%. Net increase in

agricultural advances during the nine month period was Rs. 11,594 Crores.

Achievement under ACP-2010-11 Sri Ramachandran informed that as per the provisional data available as on 19.03.2011, Banks have disbursed Rs. 8,050 Cr with an achievement of 92% under Rabi crop loans and Rs. 6,314 Cr with an achievement of 90% under Rabi term loans. The target set for the year would have perhaps been surpassed by this time though required data is yet to be received. He emphasized the need for improving the lending under ‘investment credit’ where assets created will yield consistent income to the farmer. Increased investment credit will result in creation of demand for short term agricultural credit. Activities allied to agriculture are also to be encouraged as they will supplement the income of rural population.


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With regard to other sectors, the achievement is 97% under SME sector and 66% under other Priority sector. Under SHG- Bank Linkage, Banks have disbursed an amount of Rs. 6,791 Cr to 4,57,954 SHGs against the target of Rs. 8,636 Cr for the year 2010-11 excluding target of Rs. 4,078 Cr under Community Managed Sustainable Agriculture (CMSA).

Loan Eligibility and other benefit Cards to Tenant farmers Sri Ramachandran has appreciated the initiative of the Government of Andhra Pradesh on introduction of Loan eligibility and other benefit cards to the farmers, as this is understandably the first of its kind in the country. This initiative coupled with the efforts of Agriculture Department in organizing tenant farmers into Joint Liability Groups (JLGs) will give lot of comfort to Banks in extending crop production loans and he hoped that the problems being faced by the tenant farmers will largely be addressed.

Fake Pattadar Pass Books

He felt that the major area of concern for the Bankers in the State is the incidence of Fake Pattadar Pass Books and requested the Hon'ble Chief Minister to take steps for introduction of fool proof land record system to address the problem. Sri Ramachandran requested that In the meanwhile, the State Government may give latest updated land records to the branch managers well before the commencement of this khariff season.

SME Sector Advances

The outstanding under SME sector in Andhra Pradesh is Rs. 24,921 Cr as on 31.12.2010. He informed

that for the first time our State has adopted a target of achieving a minimum of 10,000 units under

CGTMSE scheme. By the end of 15th March 2011, banks could disburse Rs. 418.73 Crores to 6,630 units

under the scheme. The sickness of the units under the SME sector is another major concern. In the

recent meetings, it was observed by RBI that the number of Sick-Viable units is very low in Andhra

Pradesh compared to other States. RBI has advised all the banks to scientifically study the reasons for

low level of Sick-Viable units in the State.

Educational Loans

Sri Ramachandran informed the House that the outstanding under educational loans was Rs. 5,651

Crore as on 31.12.2010 and the Banks have helped a large number of poor students to seek higher

studies. Mounting overdues under the sector is the major concern for the Banks.

Housing Sector

Sri Ramachandran informed that the outstanding under housing loans as at the end of December, 2010

is at Rs. 23,044 Cr. Under ISHUP (Interest Subsidy Scheme for Housing urban Poor) Scheme, the problem

of delay in claiming interest subsidy even after grounding of the units is continuing and needs to be

addressed. Banks are requested to utilize the budgetary allocations made under the scheme for the

benefit of housing beneficiaries and to implement the scheme in a speedier manner. He requested the

Government to extend necessary cooperation and support in recovering the loans extended under Rajiv

Gruha Kalpa and VAMBAY schemes.


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NPA/ Overdues

The President of SLBC shared his concern that a large number of crop loans disbursed during 2007 and

2008 are still remaining unpaid. The feedback received indicated that some of the farmers are expecting

another debt waiver and are not repaying their dues. He requested that Government may consider

undertaking or supporting a special publicity campaign highlighting the need for prompt repayment,

which results in further lending and with which farmers also get the benefit of Pavala Vaddi, crop

insurance, etc.

He also expressed concern with regard to increase in overdues under SHG-Bank Linkage, Education

Loans, and weaker section housing loans. Sri Ramachandran informed that recently, when one of the

branch managers approached for the recovery of overdue educational loan, he along with staff member

was beaten up by the family members of the beneficiary. Instances of such untoward incidents were

also reported in the campaigns organized for recovery of VAMBAY and RGK loans where the Banks’ staff

was gheraoed by the beneficiaries. Sri Ramachandran felt that such instances are to be tackled

effectively to maintain credit discipline.

Unless there is a continuous thrust on prompt repayment culture, it is difficult for the system to sustain.

President of SLBC of AP once again appealed to all the Government departments to extend necessary

assistance to Banks in recovery, especially under Agriculture, SHG-Bank Linkage programme, weaker

Section Housing and other Government sponsored schemes. He welcomed the initiatives of Agriculture

department, SERP and other agencies in this regard.

Implementation of Financial Inclusion Plan

Sri Ramachandran informed that as per the decision taken in the 172nd meeting of SLBC, a Sub-

Committee was constituted to review the progress and to ensure that all the villages having population

above 2,000 are provided with banking outlets by March, 2012. He appealed to the bankers to initiate

steps to cover all the remaining unbanked villages (18,080 villages) under Financial Inclusion Plan.

RSETIs and FLCCs

In Andhra Pradesh, the Banks have covered all the districts with Rural Self Employment Training

Institutes (RSETIs). In districts such as Srikakulam, Chittoor and Rangareddy, more than one RSETIs (

including APBIRED ) sponsored by banks are functioning. He requested that Banks may come forward to

open some more RSETIs in the backward districts of the State. RSETIs have to play an important role in

the days to come, in promoting rural entrepreneurship and skill development.

In Andhra Pradesh, only six Financial Literacy and Credit Counseling Centers (FLCCs) are functioning. The

member Banks are aware that unless financial literacy and credit counseling efforts are made

simultaneously with other Financial Inclusion initiatives, it is very difficult to achieve the desired results.

President of SLBC of AP appealed to all the Lead banks and other major Banks including RRBs to actively

participate in the efforts.


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Streamlining SLBC Meetings

President of SLBC of AP invited the attention of Banks to the directions of RBI on the regular conduct of

SLBC meetings with effect from January 1, 2011. He requested for the support of all the Banks and

Government in this regard.

While concluding the address, on behalf of his fellow Bankers, President of SLBC and Chairman and

Managing Director of Andhra Bank once again assured Hon'ble Chief Minister that the Banks functioning

in Andhra Pradesh will continue to participate in meeting the developmental objectives of the State.

Hon’ble Chief Minister, Sri. N. Kiran Kumar Reddy, in his key note address mentioned the following

points:

Hon’ble Chief Minister in his address informed that the State has experienced heavy rains/floods during

November and December, 2010, which have caused heavy loss to the farming community in about 680

mandals. As per the details given by State Agriculture department, the reschedulement of Khariff, 2010

has taken place to the tune of Rs.980 crores which is 9% of the total eligible amount of Rs.11000 crores.

He expressed his concern and requested the Banks to pay required attention in this regard. As the

cutoff date for the reschedulement is coming to an end by March 31, 2011, the same may be extended

up to June 30, 2011 so that it will facilitate the needy farmers to reschedule their present loan and

obtain a fresh loan during the current Kharif season.

With regard to interest rate being charged on rescheduled crop loans, he felt that it is high as interest

subvention is not available. He informed the house that GoAP has taken up the matter with GOI for

providing interest subvention to the rescheduled loans also.

Government of Andhra Pradesh has taken a decision to waive the interest charged on the crop loans

availed from 01.04.2010 to 30.11.2010 in 680 heavy rain/ flood affected notified mandals. The banks

were requested to speed up the process for sending the claims.

He informed the House that there are still 22 lakh Tenant Farmers who are in need of bank finance. He

requested the banks to extend finance to them. He further informed that Government of Andhra

Pradesh is likely to promulgate an ordinance shortly on issuing Loan and other benefit eligibility cards to

tenant farmers facilitating the banks to extend required finance.

Hon’ble Chief Minister informed the House that the Government has already issued guidelines to waive

of 100% of principal amount to individual Handloom Weavers and requested all the banks to implement

the scheme without any further delay.

Hon’ble Chief Minister told the Bankers that the Government wishes that Rs 7,500-crore loans given by

microfinance institutions (MFIs) to SHGs is to be swapped by the Banks, to the extent possible. It needs

to be done to save the poor from high interest rates being charged by MFIs. Honble Chief Minister

requested the Banks to enhance the credit flow to SHGs to avert the adverse affects of lending by MFIs.


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He requested the banks to go beyond the targets under SHG-Bank linkage programme to achieve this objective. With regard to lending to Scheduled Caste / Scheduled Tribes, he requested the banks to take steps for

improving credit flow.

In his concluding remarks, the Hon’ble Chief Minister once again reiterated the following points:

Implementation of Handloom weavers Loan Waiver Scheme and Fresh Lending to Handloom

Weavers.

Thrust is to be given for lending to Tenant Farmers.

The benefit under Pavala Vaddi Scheme has not percolated properly among the farming

community and there is every need to popularize the scheme.

Reschedulement of the Crop Loans extended till 30.11.2010, to the maximum extent.

SHGs lending needs to go up beyond 100% of target.

Sri A.S. Rao, Regional Director, Reserve Bank of India, Hyderabad informed the House about the

developments on the regulatory front during the last quarter.

While expressing satisfaction on achievement of Annual Action Plan 2010 – 11 (81% as on 31st

December, 2010), he was confident that the set target would have been accomplished by now.

Under Financial Inclusion (opening of no frill accounts) he observed that fourteen districts have achieved

100% coverage of households by opening No Frills accounts and in the remaining eight districts, the

progress is between 80% and 95% which needs follow up for achieving the target. He requested all the

banks to pay focused attention in this regard.

In respect of Smart Card Project, banks have already issued 70 lakhs of the Smart Cards and another

estimated 50 lakhs Smart Cards are to be issued by banks in the State. This target is to be completed at

an early date.

Recently, Reserve Bank of India has organized Outreach Programme from 24th March, 2011 to 26th

March, 2011 in the district of East Godavari and reviewed Financial Inclusion Progress. During the next

financial year more and more such programmes will be conducted.

With regard to RSETIs there are twenty four Rural Employment Training Institutes in 22 districts and

RSETIs can play a vital role in the development of rural entrepreneurship. He advised the Banks to

improve the number of training programmes in the newly established RSETIs.

Under Financial Inclusion Plan, in Andhra Pradesh there are 6699 villages with a population 2000 and

above for opening banking outlets. The progress made in this regard is just 12%. The same is observed at

National Level also.


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There are 18,080 villages with less than 2000 population in the state. These villages are also to be

included in the Financial Inclusion Plan. Unless a comprehensive approach is adopted by the banks, it is

very difficult to go ahead in implementation of Financial Inclusion Plan as this is a huge task.

With regard to MFIs, he observed that for the purpose of financial inclusion, the MFIs are necessary and

requested the State Government to supply timely data to RBI. He also suggested to the State

Government, not to delay the process of registration of MFIs.

Regional Director of Reserve Bank of India appreciated the Convenor, State Level Bankers Committee for

incorporating the Reserve Bank of India circulars in the Agenda and also for making improvements in the

content of Agenda notes.

Smt. Sunitha Laxma Reddy, Hon’ble Minister for Indira Kranthi Pathakam, Pensions, Self Help Groups & Women Development, Child Welfare & Disabled Welfare and Juveniles Welfare appreciated Banks for reaching the target to the maximum extent under SHG bank linkage. She informed that as per the latest information received, against the target of Rs.7296 Crores, banks have achieved disbursement to the extent of Rs.6899 crores (94.5%). With regard to per Group Financing, the average per group finance is Rs.1.48 lakhs. She informed that Union Bank of India has come forward for extending Bulk Finance of Rs.50.00 lakhs to 20 Mandal Mahila Samakhyas (MMSs) and requested Banks to extend finance to all 500 MMSs. She observed that there are delays in extending finance between two linkages and requested the Banks to sensitize the branches to hasten the disbursement process. Hon’ble Minister requested State Bank of India to give their consent for data sharing and thanked other Banks for accepting to share the data with SERP for analysis. Hon’ble Minister informed that the proposed target under SHG-Bank linkage programme for the year 2011 – 12 is Rs.9083 crores and requested banks to plan for achieving the same from the beginning of the year. With regard to recovery, she felt that there is a lot of improvement of late and opined that Community Based Recovery Mechanism (CBRM) needs some more improvement. The repayment schedule of loans are to be uniform for all banks and the correct repayment schedule should be informed to SHG borrower at the time of sanction it self, so that there may not be any disparity in between the groups for same amount borrowed for the similar period. She informed that Mandal Mahila Samakhyas and Village Organizations will extend all the help to Banks in SHG-Bank linakge programme. Hon’ble Minister suggested that month-wise targets have to be set and follow for better flow of credit and monitoring. DRDAs will help in this regard. SERP also will give necessary support in this aspect. She observed that there are some anomalies in pension payments through Smart Cards and it needs immediate correction.


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Sri Kasu Venkata Krishna Reddy, Hon’ble Minister for Cooperation has felt that though Government is providing a subsidy of Rs.4500 crores under various schemes, still the farmers are in distress. He requested Hon’ble Chief Minister to take up the matter to increase the share of mandatory lending to Agriculture beyond 18% with Union Government since majority of the population depend on farm sector in the country. Hon’ble Minister emphasized the need to improve the lending to SHGs and down trodden. He also requested the Banks to popularize Pavala Vaddi scheme.

Sri Partha Sarathi, Hon’ble Minister for Secondary Education, Govt. Examinations, A.P. Residential Educational Institutions and Society for Hyderabad Public School & Intermediate Education emphasized the following:

1. Lending to Joint Liability Groups (JLGs) without any collateral security/ guarantee. 2. Allied activities to Agriculture like sheep and goat rearing to be encouraged and financed.

Government of Andhra Pradesh has provided a subsidy of Rs.350 crore for this purpose. 3. Working capital finance to be extended to SHGs undertaking Mid Day Meal Scheme in Schools

against the bills submitted to the government. 4. There is a need to improve lending to Scheduled Caste / Scheduled Tribe / Backward Class

communities and all the eligible candidates in these communities may be given loans. 5. With regard to Indiramma Housing Finance, thrust may be given in semi – urban and urban

centers for promoting G+ 3 model apartments, as land cost has increased. Hon’ble Chief Minister released a Telugu edition of “Inclusive Growth through Business Correspondent” published by Indian Institute of Banking and Finance. This book is the courseware for the business correspondent course started by IIBF. Hon’ble Chief Minister also released a Telugu calendar for 2011 – 12 published by NABARD, which is useful to the farming community. Sri Mohanaiah Chief General Manager, NABARD, said that in the recent budget, Union Finance Minister allocated 4.75 lakh crores for agriculture credit. The State focus paper prepared by NABARD projected the potential of Rs.45,000 crores under Crop loans and Rs.13,000 Crores under investment credit. He requested all the Banks to-

1. Issue Kisan Credit Cards to all the eligible farmers and cover them under Smart Card scheme to reap the associate benefits and for implementation of the same NABARD will provide the funds through FITF.

2. Encourage formation of Joint Liability Groups under allied activities such as Animal Husbandry and Fisheries, etc. and also under non-farm sector. In this regard, NABARD is providing an incentive of Rs.2000 per group to the entities instrumental for formation of the groups.

3. Use the eligible Farmers’ Clubs (a total of 5334 farmers’ Clubs are functioning of which 1203 are opened during 2010-11)as BC/BFs under financial inclusion. Required training will be imparted by NABARD.

4. Strengthen SHG-Bank Linkage programme in the State to retain No.1 position achieved. 5. Depute Branch Mangers to one day Orientation (sensitization) Programme on Mandal Mahila

Samakhyas(MMSs) and depute Senior Officers to zonal programmes proposed to be organized.


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6. Utilize the support scheme of GOI for strengthening the Handloom sector. 7. Initiate Financial Literacy programmes through Financial Literacy Credit Counseling Centres.

CGM NABARD informed that generally unit costs will be reviewed during the months of May/June every year. Quite a number of times, banks have raised this matter in the meetings. The matter was referred to their Head Office and hoped that Unit Cost Committee meeting will be conducted during the month of May this year. He expressed that CD ratio is high in our state. To meet the demand for funds by the RRBs and Cooperative sector, he urged the State Government to place funds with them, so that their resource base will be improved. He requested SLBC of AP to include NABARD circulars in the agenda book. Further he suggested to furnish Rural and Urban SHG data separately in the Agenda to have more clarity. While appreciating the efforts of Banks in implementing GOI schemes, CGM requested the Banks to sensitize their branches to submit Utilization Certificates in time with correct information (Branch wise/Scheme wise) for onward submission to GOI. Smt. Renu Challu, Managing Director, State Bank of Hyderabad informed that as part of Financial Inclusion Plan, Bank has opened around 300 banking outlets and opened about 53,000 accounts. The remaining 600 villages will be covered by 31st March, 2012. With regard to SHG finance, MD, SBH assured to continue to extend finance under the sector despite slow recoveries and requested Government to extend support for recovery of overdues. With regard to Fake Pattadar Pass Books, she said that their branches are facing operational constraints due to incidence of fake Pattadar Pass Books and requested the Government to initiate necessary steps. Sri Rakesh Sharma, CGM, SBI informed that SBI has already achieved over 90% of ACP target and expressed his confidence of achieving 100%. He informed that under Financial Inclusion Plan, 571 villages have been provided with banking facilities under various types and assured that the remaining will be completed by March, 2012. CGM requested Government of Andhra Pradesh to support the Banks for recovery under crop loans and SHG loan portfolio. Sri. V. Nagi Reddy, IAS, Principal Secretary, Agriculture suggested that Banks may take up re-schedulement of crop loans during April - June, 2011, since it is lean period and farmers can spare their time to visit the branches. He requested the House to extend the reschedulement period till 30.06.2011 as the process of reschedulement has not yet geared up. With regard to overdues under agricultural loans, he requested the Banks to continue to adopt the normal recovery procedure and he assured that Government will provide required support in recovery of dues from willful defaulters. Sri N.K. Prasad, IAS, Managing Director, APSHCL requested the House to pass resolution on implementation of GO No. 42 in respect of Rajiv Gruhakalpa, VAMBAY and INDIRAMMA housing loans as


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agreed upon in the Steering Committee meeting. Further he requested all the Banks to identify one Nodal Bank Branch at Hyderabad. Convenor, SLBC informed that though major Banks have agreed in principle for implementation of the Scheme, written confirmations are yet to be received after obtaining necessary approvals from their competent authorities. He requested the Banks to take an early decision in the matter. Sri Rajasekhar, IAS, Chief Executive Officer, SERP said that the achievement for this financial year is 94.5% and disbursement of Rs. 6890 crores against the target of Rs.7290 crores under rural SHGs is higher compared to last two years and conveyed the greetings to all bankers. CEO requested for Bulk Finance for Mandal Mahila Samakhyas. He felt that it is very important that the finance should be made in the cash credit system for SHGs. This will be very useful so that these groups may not have to approach MFIs. Banking for the poorest of the poor (PoP) Groups: SERP has identified 6.5 lakhs families in 339 Mandals and most of them are belonging to Scheduled Caste /Scheduled Tribes. The tentative plan proposed is Rs.1200 crores with a subsidy of 10% from SGSY for the coming year. He informed that the analysis of SHG data will be useful for tracking SHGs, their credit history and repayment and requested the Banks to share their data with SERP. With regard to MFIs, he informed that an excellent credit bureau was established by the GoAP. MFI registration can be tracked from the website. As on date there is no pendency with regard to the registration of MFIs. Sri Raymond Peter, Principal Secretary, Social Welfare department said that there are two issues with bankers. He informed that a meeting will be convened shortly to sort out the issue on payment of service charges to Banks for Student Scholarship accounts. He requested the Banks to extend additional financial support to the educational institutions till July, 2011 as State Government is clearing their dues by that time as per the Supreme Court directions. Managing Director of APSC Corporation said that by analyzing the data provided, the financing to SC/ STs needs to be improved and requested all the banks to reiterate the instructions to branches for improvement in the performance. Smt. Vani Mohan, IAS, Managing Director of Dept. of Youth Services said that the performance of Banks is very good in respect of their schemes and congratulated the banks and requested the Banks to continue the same spirit. Sri M.V. Reddy, Director, Animal Husbandry, GoAP informed that a target of 2600 units was set for financing under Mini Dairy Scheme. Pavala Vaddi Scheme is also available. The field level response is good. But, there is some communication gap with the Bank branches. This needs to be addressed.


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Sri B. Narendranatha Reddy, Convenor, SLBC of Andhra Pradesh and General Manager, Andhra Bank took up and completed the regular agenda for discussion. Vote of Thanks was proposed by the General Manager, Deccan Grameena Bank.


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Action Points Emerged in 173rd Meeting of SLBC of AP

The following Action Points emerged in the 173rd Meeting of SLBC of Andhra Pradesh

Agriculture & Allied Activities:

All the Controlling Authorities of respective Banks:

May take steps for implementation of NAIS / WBCIS by their branches without any deviation as important risk mitigation.

May take steps for early submission of claims pertaining to interest waiver on crop loans

allowed in 680 flood / heavy rain affected mandals.

May encourage financing investment credit to Agriculture and for allied activities to agriculture for improving income levels of finance.

SLBC of AP may take up with RBI on extending due date for reschedulement of crop loans

allowed from 01.04.2010 to 30.11.2010 in the 680 Floods / Heavy rains affected mandals of Andhra Pradesh.

NABARD may constitute Unit cost committee to fix unit costs for all investment credit activities

under Agriculture & allied activities.

GoAP may take steps for releasing operational guidelines under “Loan eligibility and other benefit Cards” to tenant farmers. While formulating operational guidelines, the concerns expressed by banks are to be take care of.

Increased thrust may be given by all the controlling authorities of respective banks for lending

under Horticulture Sector.

All the controlling authorities of respective banks are advised to take up financing of at least 100 new farmers by all their Rural & Semi – Urban branches during the year 2011 – 12 & submit progress made to SLBC secretariat.

All the controlling authorities of respective banks to take steps for increasing KCCs at least by

20% both in number and amount during 2011 – 12 & Smart Cards may be issued to KCC holders.

Agriculture Department of GoAP may assist the Banks in recovery of loans and in enumerating uncovered farmers & Tenant farmers.

(Action: All Banks, LDMs, SLBC, NABARD, AIC of India,

State Agriculture & Horticulture Depts.)


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Financial Inclusion:

All Lead District Managers are advised to achieve 100% Financial inclusion Opening of No Frills

accounts is to be completed in the districts Karimnagar, Krishna, Mahabubnagar, Nalgonda, Visakhapatnam, Khammam, East Godavari and West Godavari by 30.06.2011.

All the controlling authorities of respective banks to take steps for issuing Smart Cards to

estimated, uncovered 50 lakhs MGNREGS & SSP beneficiaries.

Reserve Bank of India is requested to extend incentive scheme for Smart Cards up to 30.06.2011 from the earlier date of 30.06.2010.

All the Five Lead Banks to take steps for opening FLCCCs in terms of guidelines of RBI.

All the controlling authorities of respective banks are advised to instruct their branches (Rural &

Semi Urban) to finance at least one trainee of RSETIs per each quarter. The DCC may monitor the progress.

All the RSETIs are advised to streamline their activities and ensure that their presence is felt in promoting rural entrepreneurships.

APBIRED may continue to co-ordinate the activities of RSETIs at State Level and submit progress

to SLBC secretariat every quarter.

(Action: All Banks, LDMs of concerned Districts, RBI, All RSETIs, APBIRED & Rural Dev. Dept. of GoAP.)

Financial Inclusion Plan:

All the 26 controlling authorities of respective banks implementing FIP in the State are advised

to take steps for completion of the project in respect of villages with population of 2000 and above by March, 2012 as envisaged.

Simultaneously steps are to be taken for coverage of villages with population of below 2000.

Every month progress report is to be submitted to SLBC secretariat to enable them to submit

progress to Union Ministry of Finance, State Finance Dept. and RBI.

All Lead District Managers are advised to complete the village allocation process in respect of villages below 2000 population by 30.04.2011.

Common Service Centers opened under National e-governance plan may be utilized by Banks as

CSPs as per their suitability.

District Level Sub- Committees may meet every month to review the progress.

(Action: All 26 Banks implementing FIP and LDMs)


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Housing Loans:

All the controlling authorities of respective banks are to take steps for implementation of

Interest Subvention scheme of GoI.

Under ISHUP scheme, all the controlling authorities of respective banks are advised to take steps for covering all the eligible applicants and claim interest subsidy without any time lag.

Steps are to be taken for implementing revised GO Ms. No. 42 Dt. 29.11.2008 by duly obtaining

approval from their competent authorities.

All the controlling authorities of respective banks & APSHCL to undertaken joint publicity for convincing the borrowers on prompt repayment.

All the controlling authorities of respective banks are advised to encourage Reverse mortgage

scheme for the benefit of Senior Citizens.

( Action: All Banks, APSHCL and LDMs)

Education Loans:

All the controlling authorities of banks are to take steps for implementation of Interest Subsidy

Scheme.

Lead District Managers are to resolve the issues arising due to non – issuing of income certificates by the designated officer in the DCCs and unresolved issues may be brought to the notice of SLBC secretariat.

Govt. of AP may assist the Banks in recovery of chronic overdues under educational loans.

( Action: All Banks, LDMs & Finance (IF) Dept. of AP )

SME Sector:

Andhra Pradesh Industrial Investment Promotion Policy 2010 – 15 provisions may be

popularized by the controlling authorities of respective banks among the bank borrowers and prospective entrepreneurs.

Special thrust may be given for financing in Industry Clusters and SEZs. Steps are to be taken for

opening branches of Banks in all the clusters.

GoAP may take steps for creation of Central Registry at the earliest as per the recommendations of Chakrabarthy Committee.

All the Lead District Managers to co-ordinate with DICs and take steps for preparation of Project


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projections in respect of identified activities by involving KVIC / KVIB. This task is to be completed latest by 30.06.2011.

All the controlling authorities of respective banks to encourage financing under CGTMSE

scheme. Industry Associations to conduct awareness camps among prospective entrepreneurs.

As instructed by RBI, all the banks are advised to conduct viability studies in respect of sick units and take steps for their rehabilitation.

( Action: All Banks, LDMs, GoAP & Industry Associations )

Handloom Weavers:

All the controlling authorities of respective banks are advised to take suitable decisions and take

steps for implementation of Loan Waiver scheme for Hand Loom Weavers as approved by GoAP.

GoAP may extend the scheme implementation period up to 30.06.2011.

( Action: All Banks & Hand Looms & Textiles Dept., of GoAP )

Social Welfare Schemes:

Scholarship schemes of GoAP:

GoAP, Social Welfare Dept., may reimburse the charges to the concerned Banks as per the modalities accepted under the scheme.

( Action: Social Welfare Dept., GoAP ) Minority Communities: All the controlling authorities of respective banks to give:

Thrust for opening of bank branches in the Minority concentrated areas of the state.

Thrust is to be given for financing persons belonging to minority communities to achieve a minimum of 15% of credit to Minority communities.

( Action: All Banks & LDMs ) Credit flow to SC / ST, Weaker Sections & Women:

All the controlling authorities of respective banks to give thrust for financing SC / STs, Weaker Sections and women.

( Action: All Banks & LDMs )


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Credit under DRI Scheme:

All the controlling authorities of respective banks to take steps for achieving 1% of their Net Bank Credit under DRI sector.


Self Help Groups- Bank Linkage Programme:

Adequate thrust may be given by the controlling authorities of respective banks for extending

finance under the scheme in terms of Core Committee recommendations.

Separate GL heads may be created by the controlling authorities of respective banks for Rural & Urban SHGs.

Thrust may be given for financing disable groups by all the controlling authorities of respective

banks.

GoAP is requested that it may review implementation of Pavala Vaddi scheme as per the suggestions given by SLBC.

SERP & MEPMA may extend necessary assistance to banks in recovery of overdues. The CBRM

mechanism may be strengthened.

The issues relating to 1. Extending finance MMSs and 2. Financing Poorest of Poor (PoP ) Groups may be taken up by the Steering Committee SLBC for further deliberation.

All the controlling authorities of respective banks may extend required co-operation to SERP /

MEPMA in their data analysis efforts, which will be useful to Banks also.

( Action: All Banks, LDMs, SLBC, SERP & MEPMA )

Implementation of Lead Bank Scheme:

All the controlling authorities of respective banks & Lead District Managers are advised to

implement the guidelines of RBI given under the scheme and submit quarterly progress report to SLBC secretariat, to enable them to submit to RBI.

All the controlling authorities of respective banks and concerned Government departments may

note the yearly calendar circulated by SLBC on conducting SLBC meetings.

( Action: All Banks, LDMs & concerned Govt. Departments )


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Govt. Sponsored Schemes:

All the controlling authorities of Banks are requested to give adequate thrust for implementing

Central & State Governments schemes and ensure set targets are achieved. ( Action: All Banks )

Overdue / NPA Position:

All the controlling authorities of respective banks are advised to furnish the required data to

SLBC secretariat to enable them to make meaningful analysis.

GoAP is requested to extend necessary cooperation to banks in recovery of overdues under Agriculture, SHGs, Housing, Education and other Govt. sponsored schemes.

The services of the Deputy Tahsildars who are deputed to Lead District office may be effectively

used for the banks in recoveries.


Bank Sponsored FSCSs:

Responding to the agenda item placed in the meeting, the Registrar of coop. societies has sent reply, which is given below:

1. Whether the NABARD guidelines on expenditure and Man Power Norms and model byelaws of PACSs are applicable to FSCSs sponsored by Banks.

YES

2. The Model byelaws of PACSs are not containing the role and responsibilities of Managing

Directors. The Model byelaws in respect of FSCSs are under finalization. The same will be communicated as soon as its finalization.

3. The procedure to be followed for reimbursement of the salary of staff of FSCS including

Managing Director. As per the NABARD guidelines Staff Cost has to be limited to 20% to 30% of total income (net interest income + other income) of the society.

4. As per the guidelines issued to PACS, the Staff Cost should not be more than 30% of the net income. When the salaries of staff including Managing Director of FSCSs exceed 30% the procedure to be followed. The Managing Committee has to limit the Staff costs in the range of 20-30% of total income


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(net interest + other income) of the society.

5. Whether it is mandatory to adopt the Model byelaws by the Bank sponsored FSCS.

YES The Registrar of Coop. societies is requested to takes steps for formulation & communicate the Bye – Laws for the Banks sponsored FSCSs.

(Action: Registrar of Co-op. societies, A.P.)

Important Communications Received:

SLBC is advised to include the important communications received from NABARD apart from RBI

& Government. ( Action: SLBC )

Submission of Information to SLBC:

SLBC can be effective only if all the Banks, LDMs & Govt. departments submit the required

information well within time.

As per RBI guidelines, the data for 31.03.2011 is to be submitted to SLBC secretariat by 15.04.2011.

( Action: All the Banks, LDMs and concerned Govt. departments )

Of the above Action Points, the following are categorized as LONG PENDING in our state:-

1. Introduction of Fool proof Pattadar Pass Book system in the state.

(Revenue & Agril Department, GoAP.)

2. Reimbursement of charges to Banks under Social Welfare Scholarships. ( Social welfare Dept., Govt. of AP)

3. Establishment of Central Registry as per the recommendation of Chakrabarthy Committee. (Finance (IF) Dept. of Govt. of AP & Industries Dept.)

4. Preparation of Project profile at District Level under SME sector involving DICs, Banks, KVIC & KVIB.

( LDMs, DICs & KVIC / KVIB )

5. Interest Subsidy is to be claimed immediately on grounding of units under ISHUP. ( All Banks )


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6. Banks have to complete 100% opening of No Frill accounts and all the districts are to be declared financially inclusion.

( LDMs of 8 districts, who are yet to achieve the task & All Banks ) 7. Opening of FLCCs in all the districts in terms of RBI guidelines.

( Lead Banks & Major Banks )

All the concerned are requested to take required steps to ensure that above are not reflected by 30.06.2011.

Documents

Date : 30.03.2011 Time: 11.00 A.M. - slbcap.nic.in SLBC of AP Meeting.pdf2 173rd Meeting of the SLBC of Andhra Pradesh was conducted on 30.03.2011 at Jubilee Hall, Public Gardens,