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PROCEEDINGS OF 110TH SLBC MEETING HELD ON 20.07.2007

AT BHUBANESWAR

The 110th SLBC Meeting of Orissa was held on 20.07.2007 at Bhubaneswar

under the Chairmanship of Shri V. K. Dhingra, Executive Director, UCO Bank

and Chairman SLBC, Orissa. Among others, it was attended by Shri P. C.

Ghadai, Hon'ble Finance Minister, Orissa, Shri A. K. Tripathy, Chief Secretary,

Govt. of Orissa, Dr. R. N. Bohidar, Addl. Chief Secretary-cum-Development

Commissioner, Orissa, Shri S. P. Nanda, Agriculture Production Commissioner,

Orissa, Shri R. N. Senapati, Principal Secretary to Govt., Finance Deptt., Govt.

of Orissa, Shri G. Jagan Mohan Rao, Regional Director, RBI, Bhubaneswar, Shri

S. A. Kareem, Chief Gen. Manager, NABARD, Regional Office, Bhubaneswar,

Shri M. N. Rao, Chief General Manager, SBI, LHO, Bhubaneswar. The list of

participants is annexed.

"At the outset, Shri Dhingra, Chairman, SLBC expressed deep concern on

devastating flood that has affected innumerable number of people including

the livestocks and caused damage to the standing crops in some parts of the

State, mostly in Balasore and Bhadrak Dist and some people have lost their

lives also. On his request, the house observed one minute silence to give

peace to the affected people/departed souls."

Then Shri A. N. Mohanty, Dy. General Manager, UCO Bank-cum-

Convenor, SLBC welcomed;

1. Shri P.C. Ghadai, Hon'ble Finance Minister, Orissa.

2. Shri V. K. Dhingra, Executive Director, UCO Bank & Chairman, SLBC, Orissa.

3. Shri A. K. Tripathy, Chief Secretary, Govt. of Orissa.

4. Dr. R. N. Bohidar, Development Commissioner, Govt. of Orissa.

5. Shri R. N. Senapati, Principal Secretary, Finance Department, Govt. of

Orissa.

6. Shri G. Jagan Mohan Rao, Regional Director, Reserve Bank of India,

Bhubaneswar.

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7. Shri S. A. Kareem, Chief General Manager, NABARD, Regional Office,

Bhubaneswar.

8. Shri M. N. Rao, Chief General Manager, State Bank of India, Local Head

Office, Bhubaneswar.

In his welcome speech he expressed as follows :

● The 110th SLBC Meeting is held in such a time, when Orissa is witnessing

vibrant economic activities, Banks and other financial institutions are

coping with it. The investment climate is very conducive for the Bankers.

● The CD ratio of Banks in Orissa as of 31/3/2007 is computed at 79.51%

which is satisfactory.

● Under Priority Sector lending, as of 31/3/2007 the percentage of PS

advance to total advance is calculated at 58.31% which is satisfactory.

● Under Branch expansion programme, 134 numbers of branches have been

opened during the 2006-07, 7 no. of rural branches, 58 no. of semi urban

branches and 67 no. of urban branches have been opened.

● Under financing to WSHGs, the Banks have done well during 2006-07 and

momentum is maintained for this year also. It is worthwhile to mention that

our State ranked 1st position in financing WSHGs in eastern India and 4th in

the country.

● Under ACP, financing to Allied Sector under agriculture lending have been

improved to 90% which is praiseworthy.

● Lastly he prayed Lord Jagannath, the almighty to shower his blessing to us

to carry out all the programme assigned to Bankers as well as to officials of

Govt. line Department successfully.

Then he requested Shri V. K. Dhingra, Executive Director, UCO Bank and

Chairman, SLBC, Orissa to deliver his key not address.

Key note address by Shri V. K. Dhingra, Executive Director, UCO Bank

and Chairman SLBC, Orissa.

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● The Executive Director, UCO Bank welcomed Shri P. C. Ghadai, Hon'ble

Finance Minister, Orissa and other dignitaries and participants to 110th

SLBC Meeting. In his key note address Shri Dhingra remarked as follows :-

● It gives him immense pleasure to be amongst all in 110th SLBC Meeting of

Orissa which deals with various Banking issues related to economic

development of Orissa.

● The State of Orissa has witnessed considerable progress in different areas.

As Executive Director of UCO Bank and Chairman of SLBC, Orissa, he

attended 110th SLBC meeting of Orissa for the first time and appealed all

Bankers and officials of Government line department to join hand in hand

for the economic development of the State.

● The Indian economy has been performing consistently well. The GDP

(Gross Domestic Product) grew at 9.4% during the fiscal 2006-07 as

against 9.00% during 2005-06. The manufacturing sector remained a key

driver of the industrial growth with a growth rate of 12.3%. The industries

and service sectors showed sustained growth of 10.2% and 11%

respectively. The agriculture sector showed a lower growth of 2.7%, hence

financing farm sector is to be given importance.

● The State is quite rich in mineral resources, long coastal line, plentiful

inland water, diverse forest wealth, plentiful ground water. Therefore, State

Government and Banks have got ample scope for development of

industries including SME and there is ample scope of lending to SME which

has high potentials for export.

● It is heartening to mention that investment of more than Rs. 4,00,000

crores in Steel, Aluminum, Petrochemical and Power sector have been lined

up and lot of industries are coming up in next 10 years. Steel giant like

POSCO & Mittal Group of Industries are going to set up Steel Plant with an

investment of Rs. 52,000 crores and Rs. 40,000 crores respectively. The

future of the Orissa is in-fact bright and Orissa will be shining. The Bankers

have great role to play in financing in a big way in secondary and as well

as tertiary sector.

● As a matter of fact, in the present scenario, lot of economic activities will

come up in view of large number of industries coming up which would

contribute immensely for the GDP growth of the State.

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● The finances to SME sector under cluster based approach has to be given

priority as it offers possibilities of reduction in transaction cost and also

provide an appropriate scale for improvement in infrastructure and

financing SMEs and Agriculture should be the thrust area for all the Banks.

● The State has low productivity in agriculture sector, despite the fact that

the goals of the doubling of Agriculture Credit have been accomplished in

right earnest by the Banks within 2 years i.e. as of 31/3/2006, the Banks in

Orissa have been able to achieve doubling target one year prior to the time

given by Govt. of India.

● There should be improved farm technology, diversification of crops,

diversification of traditional agriculture to hi-tech agriculture and

commercial agriculture. Banks have great role to play in financing

agriculture, the primary sector of the economy as 85% people of the State

depend upon agriculture for their livelihood. There should be replacement

of hybrid seeds in variety of rice, wheat and vegetables to increase the

crop productivity in the State. Banks have to finance Horticulture,

Pisciculture and Animal Husbandry sector on priorities. The financing under

various Pisciculture schemes such as (1) Development of Freshwater

Aquaculture, (2) Development of Brackishwater Aquaculture, (3)

Development of Waterlogged areas, (4) Integrated Development of Inland

Capture Resources (Reservoirs/Rivers etc.) as approved by Govt. of India is

to be given priority. So that mission of Hon'ble Chief Minister of Orissa

regarding doubling of Inland Fish Production in the State be accomplished

within 5 years.

● As most of the farmers belong to small, marginal or landless category.

Banks should finance more and more on group lending either in Joint

Liability Groups (JLG) or Tenant Farmer Groups (TFG).

● The performance of Banks under ACP 2006-07 as on 31/3/2007 is 110% of

the target which is quite satisfactory.

● On year to year basis, taking into account the National Scenario of hike of

interest rates number of times and slackening of credit growth, the deposit

of Commercial Banks have grown by 28.70% and advances by 25.09%

which is satisfactory.

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● The overall CD ratio stands at 80% against the National Parameter of 60%.

The Priority Sector advances of Commercial Banks to Total Advances of

Commercial Banks is 56% as against the National Parameter of 40%. So

the Bankers and Govt. line Department deserve appreciation for this.

● It is learnt that Orissa has received the long awaited sanction from the

Center for setting up of its first Private Software Technology Park (STP) at

Bhubaneswar. All Bankers should now come forward to avail this

opportunity. In the process of globalization, IT sector of our country is

growing tremendously but in Orissa this sector is not developing as

compared to other States.

● In view of the present scope for industrial development in Orissa, the

Bankers have got a major role to play in financing under Education Loan

also.

● The SC and ST population represent the most backward and disadvantaged

group in the society. The credit flow to SC/ST sector is to be increased as

their concentration constitute 16.5% and 22.1% of the total population

respectively as per 2001 census. There should be a concrete plan of action

by Banks and Government Department to develop this segment by

financing more and more for their self employment and generations of

income.

● The SHG Bank linkage programme is a major plank of the strategy to

deliver sustainable finance services to the poor. Financing to Women Self

Help Groups under Mission Shakti of Govt. of Orissa is gaining momentum

with an objective of holistic empowerment of women. Orissa has Self Help

Groups of more than 20 lakhs of women who have banked more than Rs.

500 crores of rupees. Orissa is in the path of progress and prosperity.

● For Policy Makers, Planner, Financial Inclusion has emerged as a top

priority lately. Hence, the Financial Inclusion is the need of the hour.

Financial Inclusion of the Ganjam District taken up by SLBC during last year

has achieved a great success. In the second phase SLBC, Orissa has taken

up five districts i.e. Cuttack, Puri, Nayagarh, Rayagada & Keonjhar for

100% Financial Inclusion.

● The Financial Inclusion has become a major concern, bringing therefore,

the need of development strategies that covers all sections of the society.

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Access to finance specially by the vulnerable sections of society is a pre-

requisite for economic growth.

● It is very important to understand whether Financial Inclusion is a social

responsibility or business opportunity. Initially it may achieve the objective

of social responsibility but in long term it is an investment to tap business

potential.

● He appealed to all Bankers/Govt. line Department present here to

accomplish the task of completion of Financial Inclusion of Five Districts

taken up by SLBC by September 2007.

● Financial Inclusion in India is an enchanting dream, a dream that we alone

can fulfill. He quoted the words of Martin Luther King Jr.

● "A dream of equality of opportunity, of privilege and property widely

distributed; a dream of land where men will not take necessities from many

to give luxuries to a few; .....a dream of a nation where all gifts and

resources are held not for ourselves alone but as instruments of service for

the rest of humanity; the dream of a country where every man will respect

the dignity and worth of the human personality."

● Last but not the least, He once again appealed Bankers and dignitaries

from the Govt. line Department to work hard jointly to make this State very

progressive and prosperous in the economic map of our Country.

Then Dy. General Manager, UCO Bank requested Hon'ble Finance Minister,

Orissa to deliver his key not address

Address by Shri Prafulla Chandra Ghadai, Hon'ble Finance Minister,

Govt. of Orissa.

● While expressing pleasure in associating with SLBC and participating

the deliberations relating to various employment generation

programme and poverty alleviation programme of the State

Government which has been implemented by Banks and reiterating

the call of Shri V. S. Dhingra, Executive Director, UCO Bank to look

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forward in all activities concerning to Banks and Govt. line Deptt. for

all round development of the state, he expressed as follows -

● The most important task before Bankers as well as the official of Govt. line

Deptt. is how to rehabilitate the flood affected people by assisting them

and to engage themselves in various income generated activities with

liberal dose of Institutional credit & there by restore the economy of the

state.

● During the recent heavy flood as many as 858 villages covering 13,20,870

no. of Persons & 12,07,061 hectares of cropped area in 12 districts i.e.

Balasore, Bhadrak, Kendrapara, Jajpur, Keonjhar, Mayurbhanj, Angul,

Ganjam, Kandhamal, Koraput, Nayagarh & Sundargarh Dist of the State

have been seriously affected. There has been also loss of human life and

live stock population and quite a good no. of dwellings have been damaged

which necessities huge relief and rehabilitation operations and also liberal

extension of production and Investment credit by the Banks including

reschedulement and rephasement of Agriculture & other credit to the

farmers/people of flood affected areas to revive the economy of the State.

He requested Regional Director, RBI, CGM, NABARD, Regional Head of the

Bank present in the meeting to take necessary steps for extending liberal

production and investment credit in the flood affected areas.

● He requested Bankers not to insist upon recovery of agricultural loans in

those areas affected by flood till next cropping season.

● There has been good progress in extension of credit to agriculture & allied

activities which has been doubled by the end of 2005-06 and the progress

under various sector under ACP is reasonably satisfactory. This should not

make us complacent as the initial level of finance of Agriculture and other

areas of priority sector was very low.

● He laid emphasis in increasing the flow of Institutional credit to Agriculture

and allied activities, Small & Medium Enterprises (SME) and Small Scale

Industries, all of which are high potential for Income generation & key to

economic growth.

● As regards financing Small & Medium Enterprises he reiterated the call of

Union Finance Minister to double it by 2010.

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● He observed that as percentage of SSI advance to total advance is only

7.20% and the percentage of SME Advance to total Advance is only 12.98%

as of 31/3/07 which necessities increasing thrust on extension of credit to

more & more number of units under small scale industries and small &

medium enterprises.

● He impressed upon the Bankers to extend credit to the more number of

units under SSI & SME sector by covering under CGTSI scheme.

● As the Handloom sector occupies key position in the economy of Orissa in

providing income and employment to sizeable rural population, he

exhorted upon the bankers to increase the flow of credit to Handloom

Sector for which NABARD refinance is available for the working capital

requirement of primary weavers co-operate society.

● For improving financial inclusions in the state he expressed that Banks

should open more number of No Frill Account and provide General People

Credit and as during the year 2006-07, Banks in Orissa have opened

223452 No Frill Accounts and Issued 16580 GCC.

● He expressed that private sector Banks i.e. ICICI Bank, HDFC Bank,

Centurian Bank, Fedral Banks, Vysya Bank etc although are mobilizing

large amount of deposit in the state, their participation in employment

generation programme, poverty alleviation programme extension of credit

to Agriculture & Small & Medium Enterprise sector is not upto mark.

Hon'ble Finance Minister observed that in spite of fact that the matter has

been discussed in earlier SLBC meeting, no improvement had been noticed

till date.

● He once again exhorted upon all the representative of the private sector

Banks present in the meeting to participate actively in the programme of

state govt., failing which govt. may consider to decline it dealing with those

Banks.

● He congratulated the commercial Banks for having achieved the growth of

CD ratio to 74.37 as of 31/03/07, at the same time he advised the some of

the Banks such as Allahabad Bank, Canara Bank, Central Bank of India,

Corporation Bank, Indian Overseas Bank, PNB and Vijaya Bank to improve

the CD ratio as stipulated by RBI .

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● He expressed that the percentage of Agriculture advance to total advance

as of 31/03/07 stood at 19.7% which is no doubt a good sign for the state.

Some of the major Banks like Andhra Bank, Bank of Baroda, Bank of India,

Central Bank of India have to increase the flow of credit to Agriculture

sector to improve the percentage of Agriculture advance to total advance.

● Regarding DRI Advance, he expressed that the percentage of DRI advance

to total advance by the Commercial Banks as of 31/03/07 was only 0.3%

which is far below the National Parameter of 1% of the previous year

outstanding advance and expressed concern for the banks having nil DRI

advance. Banks have to achieve 1% of total advance under DRI. Still

39.90% of people in state are remained below the poverty line, Banks have

to lend more under DRI.

● Lastly he expressed that Banks have to play a key role for developing the

economy of the state and assured Bankers to render all co-operations from

the Govt. side to look forward for the development of the State.

Address by Shri G. Jagan Mohan Rao, Regional Director, Reserve Bank

of India, Bhubaneswar.

While expressing concern for the flood stricken areas of the state he

remarked as follow :

● As a steps for undertaking remedial measures special DCC meeting at

Bhadrak and Balasore district already been held on 10.06.07 and 13.06.07

respectively. Relief measures have been extended by the Banks.

● A small committee will visit the flood affected districts of Bhadrak &

Balasore to verify the relief measures extended by Banks.

● There is no necessity for holding special SLBC for the purpose because DCC

meeting already held to take care of the situations and if necessary,

special DCC may be held much before the quarter ending of those Dist.

and relief measures can be extended.

● Regarding non-participation of private sector Bank in priority sector

Advance, a meeting of private sector Banks was held and they are advised

to submit the correct data sector-wise to RBI and SLBC. Consumer loans

and Personal loans are mostly extended private sector Banks. Out of 28

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items of private sector lending, 8 items are given by them and those banks

have to participate according to priority sector guidelines.

● The percentage of Agriculture Advance to total advance stood at 19.60%

though exceeded the 18% of stipulation (i.e minimum level), it does not

mean that bank should stop lending to Agriculture sector. Bank must

continue to lend to the sector whenever there is a scope of Agriculture

finance.

● In fact doubling of Agriculture credit takes place within 2 years in Orissa,

he emphasized that Banks should give Investment Credit to increase Credit

Absorption Capacity of the farmers in the State.

● He urged upon the Govt. line Deptt. to give list of pending applications

under Agri-Business activities for various Banks, Branch Wise so that

necessary steps can be taken for the disposal of those application.

● As there is lack of enthusiasms by the farmers to take up new crops & to

increase the credit absorption capacity, he emphasized the role of State

Govt. official in extending extension services through their Agriculture

extension Officer, Animal Husbandry Extension Officer etc. He also

suggested that if Govt. corporation gives guarantee for repayment of loans

in a straight way, Bank may give loans to the eligible farmers.

● 100% Financial Inclusions of Pilot Project of Ganjam district has been

achieved by the Banks. In second phase five districts i.e Cuttack, Puri,

Nayagarh, Keonjhar & Rayagada had been taken up for financial inclusions

and Bankers are spending few lakhs of rupees in campaigning through

Doordarshan & All India Radio as a programme of financial education to the

vulnerable section of the society.

● With the help of Dist. administration captioned programme has been kick

started and survey of financially excluded villagers have been undertaken.

Financial consultant has been appointed by SLBC and Banks in Orissa are

sharing all the expenses in connection with the programme.

● He emphasized for door step Banking. Earlier people are coming to Bank

for opening of Account, now Bankers are going door to door, requesting

them to open a bank account with no cost, even the cost of photograph is

being borne by the Bank. He desired that No Frill also can be opened in

large number for reaching goal of financial inclusion in Orissa.

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● Regarding achievement of financial inclusions he requested all the Govt.

officials and Bankers to take it as a Mission. All the 100% eligible people

are to be included in banking fold for inclusive growth.

● Financial inclusion is not only opening of Bank Account, all the Banking

facilities is to be extended to the poor people with no cost or at an

affordable cost.

● He urged upon the Bankers to take up Gajapati Dist. having sizeable

population of minorities for 100% financial inclusions. The methodology

followed in the five districts will also be followed in Gajapati Dist.

● An outside agency will be appointed by the RBI to verify whether the 100%

financial inclusion have been achieved or not.

● He emphasized that the decisions of SLBC is to be followed up meticulously

to yield desired result.

● The Banks may lend SHGs consisting of SC/ST members & physically

handicapped beneficiaries under DRI finance for increasing flow of credit to

DRI Beneficiary.

● Regarding Education loans extended by Bank, he expressed that no body

should be deprived of higher studies for want of money. Regarding

sanction of Education loan, apart from Engineering / Medical / Professional

studies Banks have to sanction Education loans to other studies also.

● As far as Orissa is concerned, one notable feature is that workable

coordination exits between the Govt. & the bankers & he urged the Animal

Husbandry Deptt. & Fisheries Deptt. to give more Bankable scheme to be

financed by Banks.

● He told that under RIDF, apart from constructing infrastructure like Road &

Building, the funds can be utilised for technological Parks, Computerization

Programme, Animal Husbandry Development Scheme and other

programme also.

Agenda Item No. 1

The Proceeding of 109th SLBC Meeting held on 14.03.2007 at

Bhubaneswar is taken as confirmed.

Agenda Item No. 2

ACTION TAKEN REPORT

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1. Under performance to SME sector, the Banks as a whole in Orissa have

achieved 185% of the target which is praiseworthy.

The performance of SSI & ME sector to the Net Bank Credit as of

31.03.2007 was 7.20% and 5.78% respectively required to be improved.

The Banks which have adopted the cluster should chalk out concrete

plan of actions to extend credit under cluster based approach & Govt.

may extend infrastructure support and to develop the cluster for

increasing flow of credit under cluster approach. The Banks which have

not adopted the cluster must adopt the clusters identified by state Govt.

as well as by the Directorate of Handicrafts & Cottage Industry and

Directorate of Textiles and Handloom Deptt. Govt. of Orissa. The base of

SME financing in 2005-06 was very low, the Bankers are requested to

adopt as many as cluster as possible where there is large area. In view of

large industries coming up, on the basis of existence of small & medium

Enterprises, Govt. of Orissa has identified locations such as Cuttack,

Bhubaneswar, Paradeep, Kalinga Nagar, Berhampur, Rayagada,

Sambalpur, Jharsuguda, Angul & Dhenkanal for financing under cluster

approach.

The major Banks operating in Orissa may set up specialised SME

branches in that location to increase the credit flow to SME sector. It has

been decided to set up at last one SEFC (Small Enterprise Financial

Centre) branch in Orissa, Preferably at Kalinga Nagar by SIDBI.

Action :- Banks, Industries Deptt., Govt. of Orissa, SIDIBI

(02) Banks should finance more & more to MSME (Micro, Small, Medium

Enterprise) unit & take coverage under CGTSI scheme which help the

entrepreneurs to avail collateral free loan upto Rs. 25 lakhs which

includes REGP (Rural Employment Generation Programme). It was

observed that the average loan size covered under the scheme is Rs.

1.55 lakhs which was less than all India average of Rs. 2.48 lakhs. So it is

necessary that all Banks should make considerable efforts to cover high

loan size under CGTSI scheme as coverage available upto Rs. 50 lakhs as

reported by SIDBI.

Action :- Banks, KVIB, KVIC, SIDBI

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1. 100% Final Inclusion of Pilot Project of Ganjam Dist. was achieved by

SLBC as reported by the Andhra Bank having lead district responsibility

and SLBC announced 100% Financial Inclusion of Ganjam Dist. before the

House.

The meeting on implementation of Financial Inclusion of five districts i.e.

Cuttack, Puri, Nayagarh, Rayagada & Keonjhar was held on 24.04.07 and

01.06.07. The minutes of both the meeting were placed before the SLBC

& ratified. Banks, Govt. line Department and all concerned were

requested to the implement the decisions wholeheartedly for

implementation of Final Inclusion in a Time Bound Programme.

Action :- Banks, Govt. Line Deptt., RBI

2. As regards establishing Entrepreneurship Development Programme

(EDP) training Institute, UCO Bank will set up (EDP) training Institute at

Puri very soon. All other Banks which have not yet opened such Institute

should open the Institute without further delay. Most of the Banks find it

difficult to set up the Institute of their own. Till opening EDP Institute by

Banks they may utilize the services of IED (Institute of Entrepreneurship

Development).

Regarding allotment of land to RUDSETI, it was advised by Hon'ble

Finance Minister, Orissa to Authorities of RUDSETI to meet Secretary,

Industry and Chairman IDCO to sort out the problem.

Action :- Banks, Industries Deptt., Govt. of Orissa, IED, RUDSETI,

IDCO

3. The Special Certificate Courts at five district Centres i.e. at Cuttack,

Bhubaneswar, Berhampur, Sambalpur & Roukela will be started

functioning very soon as opined by Revenue Deptt. Govt. of Orissa in the

house.

Action :- Banks, Revenue Deptt., Govt. of Orissa

1. As regards Waiver of Stamp Duty, Revenue Deptt., Govt. of Orissa had

decided that Banks have to deposit 50% Stamp Duty at the time of filing

of Certificate Cast and rest 50% will be deposited at the time of final

order. The circular of Revenue Deptt., is to be sent to SLBC for circulation

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amongst the Bankers. Bankers have to follow the same while filing the

Certificate Cases.

Regional Director, RBI requested the Hon'ble Finance Minister to

reconsider the Waiver of Stamp Duty while filing. Certificate Cases

before the Certificate Officer.

Action :- Banks, Revenue Deptt., Finance Deptt., Govt. of Orissa.

(07) Regarding Implementation of the UP pattern of Recovery Act, a small

committee already constituted would submit report to the Govt. for

doing the needful.

Action :- UCO Bank, SBI, Revenue Deptt., Govt. of Orissa.

(08) The Banks operating in Orissa have to finance Handloom Sector on

Priorities with emphasis on Individual Finance. The Banks have to adopt

the clusters identified by Handloom Deptt. as well as clusters selected by

Directorate of DH & CI, Govt. of Orissa.

Action :- Banks, Govt. Line Department.

1. On request of SLBC, RBI has extended the OTS (One Time Settlement

Scheme) for small Borrwal account which was approved by SLBC upto

31/12/07. The eligible Banks may take advantage of it.

Action :- Banks.

2. As the parting of District wise data by LDMs of all 30 districts of Orissa

could not be done till date with correct data, it was decided that District

wise data will be complied in a simplified format by LDM, DSWO and

DDM/AGM of NABARD with their joint signatures for authenticity of the

Data. The Dist. wise data will be submitted to Mission Shakti Department

as well as to SLBC from March 2005 onwards on quarterly basis.

Action :- LDM, DSWO, NABARD, Banks, SLBC

3. As regards financing Two wheelers to "GOMITRA", it was decided that

viability of the scheme is to be approved by the small committee

consisting of representative NABARD, UCO Bank, SBI, & Bank of India &

Animal Husbandry Deptt. Animal Husbandry Deptt., Govt. of Orissa is

requested to send the captioned scheme to SLBC for doing the needful

Action :- NABARD, UCO Bank, SBI, Bank of India & Animal

Husbandry Deptt., Govt. of Orissa

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4. Under State Employment Mission, Banks have to participate

wholeheartedly with sincerity and have to achieve the target set to

them for 2007-08.

Action :- Banks, State Employment Mission

(13) The list of farmers to hold KCC are to be supplied by Agriculture Deptt. to

Banks at Block level has been a long outstanding issue in SLBC Meeting.

It was decided that Banks operating in Block may collect the list of

farmers to hold KCC from Block Development Officer. Co-operation

Deptt. may submit the list of farmers who have not yet issued KCC to

BDOs at Block level.

Action :- Banks & Govt. line Deptt.

Agenda Item No. - 3

Fresh Issue

A) Issue raised by Reserve Bank of India

a) Setting up of Credit Counseling Centres on Pilot Basis.

As per Annual Policy statement for the year 2007-08, "FINANCIAL

LITERACY CUM CREDIT COUNSELING CENTRE" is to be set up on PILOT BASIS

in any one of the district of the State.

It has been decided to set up Credit Counseling Centre at Balasore by

UCO Bank on PILOT BASIS. It is the responsibility of the lead Bank of the

District to set up such centre in each dist.

Action :- UCO Bank, SBI, Andhra Bank, Bank of India

b) Review of Rashtriya Krishi Bima Yojana.

The Banks must implement the National Agriculture Insurance Scheme

(NAIS) or Rashtriya Krishi Bima Yojana in letter & spirit, for coverage of crop

loans as per co-operation Deptt. Govt. or Orissa resolution number III-CR-

17/2007Co.op, dated 09.05.2007. There should not be any gap between the

crop loan disturbed and crop loan insured. The Coverage of Insurance may be

made available to Kharif Sugarcane / Agriculture Deptt./Co-operation Deptt.,

was requested to kindly look into the matter.

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Action :- Banks, NAIS, Agriculture Deptt./ Co-operation Deptt., Govt.

of Orissa.

Issue raised by RBI, Central Office, Mumbai

c) Credit Flow to Micro, Small and Medium Enterprises Sector

Annual Policy Statement 2007-08 announced by the Governor advising

Banks to review their institutional arrangements for delivering credit to the

SME sector, especially in identified clusters in various parts of the country.

(Extract of the paragraph is - The definition of small scale industry and Small

Business Enterprises for the purposes of inclusion in priority sector has been

changed in alignment with definition adopted in the Micro, Small and Medium

Enterprises Development Act, 2006. Further, in order to improve credit

delivery to SMEs, Banks are urged to review their institutional arrangements

for delivering credit to the SME sector, especially in identified clusters in

various parts of the country, and to take measures to strengthen the expertise

in and systems at branches located in or near such identified clusters with a

view to providing adequate and timely credit). List of clusters identified by

United Nations Industrial Development Organisation (UNIDO) for Orissa is

given below;

Cuttack Cuttack (Jagatpur) Engineering & Fabrication

Cuttack Cuttack SpicesDhenkanal Dhenkanal PowerloomGanjam Ganjam PowerloomGanjam Ganjam Rice MillsKoraput Koraput Rice MillsPuri Puri Rice MillsSambalpur Sambalpur Rice Mills

Banks operating in Orissa should step up credit to Small & Medium

Enterprise under cluster approach.

Action :- Banks, Govt. line Deptt.

d) SJSRY (Swarna Jayanti Sahari Rojgar Yojana)

1. SJSRY (Swarna Jayanti Sahari Rojgar Yojana) which aims at providing

gainful employment to the urban poor people must be implemented by

Banks in letter and spirit.

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The State level Monitoring Committee for focused approach towards

SJSRY in the model suggested in Govt. of India (Found in details in page

79 in Annexure X of Agenda Notes) may be constituted in our state to

over see the programmes of SJSRY in Orissa.

Action :- Urban Deptt., Govt. of Orissa, SUDA, Banks

B) Issue raised by NABARD

a) National Bamboo Mission - Development of Bamboo Sector in

Orissa.

2. For development of Bamboo Sector in Orissa, Banks may finance to this

sector to increase the Bamboo Production in the State. The details of

Bamboo Mission has already been circulated in the SLBC Meeting held on

20.07.07.

Action :- State Bamboo Mission, Banks

b) Financing of Handloom Weavers Groups - Provision of Short

Term Refinance Facility to SCBs/DCCBs - Policy for 2006-07.

3. The guidelines for financing Handlooms Weaver Groups (HWGs) is

already circulated in the SLBC Meeting held on 20.07.07. For RRB and

Co-operate Bank refinance is available from NABARD, so they may take

opportunities in financing HWGs.

Action :- OSCB, RRB, Banks, Govt. Line Deptt.

c) Jatropha cultivation in the Southern districts of Orissa -

Allegation against Orissa Nature Care Council Pvt. Ltd.

The financing banks may be cautioned to take appropriate care in

selection of promoting/sponsoring agency prior to finalising tie-ups for

Jatropha cultivation with particular reference to their reputation, past

experience, financial position, permanency local presence, ability to provide

sound forward and backward linkages, technical & managerial competence,

etc. The banks may also be advised to make themselves convinced by the

yield & income projections made by the sponsoring agencies and they should

ensure about the technical feasibility, financial viability and bankability of such

proposals before financing.

Action :- Banks, Govt. line Deptt. & NABARD

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C) Issue raised by Panchayati Raj Department, Govt. of Orissa.

4. SGSY scheme is to be successfully implemented by the Banks. Banks

have to achieve the physical as well as credit modernisation target for

the financial year 2007-08. No applications should be kept pending

beyond reasonable period beyond 15 days at branch level. Banks have to

achieve the national target of credit subsidy ratio to 3 :1. Where farm

pond has been taken up in large numbers in land owned by SC/ST family

under NREGA for providing sustainable livelihood Individual Finance

under SGSY may be provided with assets to utilise farm pond, for

cultivation of vegetable, oil seeds & pulses in Rabi season.

Action :- Govt. line Deptt., Banks.

D) Issue raised by the Director of Agriculture and Food Production,

Orissa, Bhubaneswar.

5. While financing crop loan under "B" component, instead of cash, kind

components like seeds, fertilisers & pesticides may be made compulsory

through Govt. Sale Centres located at various level mostly at Block and is

mostly applicable to co-operate Bank.

Action :- Banks, OSCB & Govt. line Deptt.

E) Issue raised by the Director of Handicrafts & Cottage Industries,

Orissa, Bhubaneswar.

6. To promote Handicraft Sector, SHGs promoted in Handicrafts & Cottage

Industries Sector in Clusters should be Credit linked with Banks and each

Bank operating in the area should adopt the cluster which will provide

employment to the people in KBK & Non KBK Dist.

Action :- Banks, DH & CS, Govt. Of Orissa

E) Issue raised by the Orissa Schedule Caste & Schedule Tribe

Development Finance Cooperative Corporation Limited.

a. The scheme of Self Employment Scheme for rehabilitation of Manual

Scavengers (SRMs) has been circulated in the SLBC Meeting and it has

been decided to finance the scheme to rehabilitate all the remaining

scavengers and their dependants by March 2009 through the Bank.

Action :- Banks, OSCSTDFCC Ltd.

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Loan finance to SC/ST Self Help Groups under Bankable IGS & loan

finance to Scavengers engaged on Hazardous Works.

b. To increase the Credit flow to SC & ST sector, the Bank may finance to

SC/ST Self Help Groups under Bankable IGS & Scavengers engaged in

Hazardous works. The Banks may expedite submission of UC

immediately & may take steps for disbursement of pending applications

without further delay. The Banks should achieve the target under SC &

ST sector the year 2007-08. SC/ST population constitutes around 38% of

the total population of the state and credit flow to SC/ST sector in our

state is the need of the hour & Banks should implement the scheme of

OSCSTDFCC LTD. with all sincerity and dedication.

Action :- Banks & OSCSTDFCC Ltd.

F) Issue raised by the Orissa Khadi & Village Industries Board,

Bhubaneswar.

a. The guidelines for implementation of REGP in respect of adjustment of

margin money of KVIB should be scrupulously followed by Banks. As per

guidelines of REGP. Those margin money are to be kept in Term Deposit

Receipts for two years and the same shall be adjusted in favour of

entrepreneur after successful implementation of the project.

Action :- KVIB, KVIC, Banks

G) Issue raised by Revenue & Disaster Management Department,

Govt. of Orissa.

(14) Land Pass Book is a novel scheme introduced by the State Government

w.e.f 26.01.2006 with aim to distribute Land Pass Book to all the

individual land holding families in the state. The programme is being

implemented successfully all over the state.

(a) After a thread bare discussion on the issue, it was decided that Land

Pass Book has a potential to be useful tool as it provides full informations

at one place not only about the borrower but also about the family

member. Therefore the Banker can take advantages of the scheme.

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(b) Bankers may also explore the possibility of the checking the Land Pass

Book mandatorily for every land based loan to be sanctioned after

1.4.2008.

(c) It is also clarified that Land Pass Book can not be a mortgageable

document.

Action :- Banks, Revenue Deptt., Govt. of Orissa.

H) Issue raised by UCO Bank, Convenor, SLBC, Orissa.

a) Special Housing Loan

(15) As a matter of facts, good number of Special Housing Loan turned NPA,

the Banks have to list out the name of the DDOs (Drawing & Disbursing

Officers) of the various Govt. Department who are not deducting the

installments for remitting to the Bank branches for crediting into loan a/c

and the name of those DDOs is to be sent to Finance Deptt., Govt. of

Orissa, so that Govt. may take necessary steps in this regard.

Action :- Banks, Finance Deptt., Govt. of Orissa

b. Recovery in Govt. sponsored Schemes

1. Under major Govt. sponsored programee i.e. SGSY & PMRY, the recovery

positions of 31/12/2006 beings 34.14%, 18.08% respectively was very

poor. Banks and Govt. Department may have joint strategies to improve

the performance of recovery for better recycling of funds. Govt. would

render all possible steps to improve the recovery in Govt. sponsored

scheme. In case of misutilisation of assets by the beneficiaries under

Govt. sponsored schemes like PMRY, they will be booked & will be

punishable.

Action :- Banks & Home Deptt., Govt. of Orissa.

c. Recent happening Flood in Orissa

1. In flood stricken districts Banks are requested to extend Relief Measures

as per RBI guidelines. Necessary loans are to be provided to

farmers/others for raising crops and other source of livelihood.

Action :- Banks & Govt. Line Deptt.

Agenda Item No. 4

Banking Key Indicator as on 31.03.07

23

The CD ratio of Public Sector Banks such as Canara Bank, Corporation

Bank, State Bank of Hyderabad, State Bank of Mysore, Vijaya Bank and Private

Sector Banks such as Rajasthan Bank Ltd., South Indian Bank and Centurian

Bank, has been less than 60% as of 31.03.07 which is a matter of concern for

the State. The CD ratio has to be improved by all the Banks. Except Canara

Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, none of

the Banks have achieved National Parameter of DRI advance. Rest of the

Banks which have not achieved the National Parameter under DRI are advised

to achieve the National Parameter of DRI, i.e. 1% of total outstanding advance

of the previous year.

The CD ratios of the Districts have been improved. LDMs of Deogarh,

Gajapati, Malkangiri, Nuapada and Sambalpur should take all possible steps to

improve their CD ratio. The percentage of P.S. credit to total advance as of

31.3.07 have been declined on year to year basis. Banks have to improve their

Priority Sector or Advance.

Action :- Banks mentioned above/all Banks/ LDM of Deogarh,

Gajapati, Malkangiri, Nuapada, Sambalpur

Agenda Item No. - 5

Recovery

The overall recovery position as of 31.03.07 is very poor. The

percentage of recovery of IRDP/SGSY and PMRY as on 31.03.07 were 36.25%

& 20.01% respectively requires improvement. Government machinery were

requested to render adequate help and assistance in organizing recovery

camp to improve the performance of recovery for better recycling of funds.

Bankers express concern for the low recovery which will stand as a barrier for

credit growth in the state.

Action :- Banks / Govt. line Deptt.

Agenda Item No. - 6

Review of Performance under Annual Credit Plan as on 3.103.07

Under ACP, financing to Allied Sector under agriculture lending have

been improved to 90% which is praiseworthy. The performance of the district

like Ganjam, Jagatsinghpur, Nayagarh, Puri require improvement. The LDMs of

23

the concerned district should take all possible measures to improve the

performance of their district under ACP 2007-08.

LDMs should take a note that credit flow to agriculture and allied sector,

SSI & SME. SHGs, REGP under KVIB & KVIC are to be enhanced to a

considerable extent in their districts.

Action :- Banks & LDMs Govt. line Deptt.

Agenda Item No. - 7

Under doubling of Agriculture Credit as on 31.03.07, the achievement

being 113% for all Banks was satisfactory. Although the doubling of

Agriculture came to end by 31.3.07, as decided in Steering Committee

Meeting of SLBC held on 18.07.07, Banks will continue to submit the

statement to SLBC as before to boost Agriculture Finance in the state and for

review & monitoring of agriculture credit by Banks. The targets have been

circulated which will be monitored on quarterly basis. The Private Sector

Banks which have not yet started lending to Agriculture sector, should come

forward to lend the primary sector to boost the economy of the State.

Action :- Banks & Pvt. Sector Bankers.

Agenda Item No. - 8

Review of Performance under PMRY & SGSY

It is worthwhile to mention that, the performance of Banks in

implementation of PMRY 2006-07 was quite satisfactory. As of 30.06.07, the

percentage of disbursement to target was 93% which was highest taking into

account the performance of disbursement to target in last 10 years.

SGSY schemes is to be successfully implemented by the Bank. Credit

subsidy ratio should be increased to 3:1 from 2.25:1 under SGSY during the

financial year 2007-08. Banks have to achieve the physical as well as credit

mobilisation target. No applications should be kept pending beyond 15 days at

branch level.

Action :- Banks & Govt. Line Deptt.

Agenda Item No. - 9

Progress under SJSRY (Swarna Jayanti Sahari Rojgar Yojana)

23

Banks have to implement the scheme with all sincerities and dedication

to uplift the urban poor above the poverty line and target for 2007-08 under

SJSRY has to be achieved by each Bank operating in the State.

Agenda Item No. 10

Progress under Self Help Groups (Mission Shakti)

During 2006-07, Banks have done a commendable job by credit linking

good number of WSHGs.

Banks operating in the state assigned with target of financing WSHGs

during 2007-08 have to achieve the target and should give highest importance

in financing WSHGs for empowerment of women as our social objectives.

Banks should take proactive steps to increase the per SHG credit to Rs.

45,000/- as has been decided in the Meeting.

The Private Sector Banks may be entrusted with financing urban SHGs.

As the parting of Dist. wise Data by LDMs of all 30 districts in the State

could not be done till date, it was decided in the small committee meeting

held on 12.07.07 under the chairmanship of Smt. Usha Padhee, IAS, Director

of Mission Shakti, Orissa that District wise Data will be complied in a simplified

format by LDM, DSWO & DDM & AGM of NABARD with their joint signature for

authenticity of the Data. The Dist. wise data will be submitted in simplified

format to Mission Shakti Deptt. as well as to SLBC from March 2005 onwards

an quarterly basis.

Action :- Banks / Govt. Line Deptt.

Agenda Item No. 11

The performance of Banks under SC/ST/Scavenger/ITDA and financing

under REGP/KVIB/KVIC.

a) Banks should lend more & more to SC/ST borrowers so that there should

be adequate credit flow to SC/ST sector. The SHGs sponsored by

OSCSTDFCC Ltd./OSFDC under SC/ST/Scavenger should be financed by

with utmost sincerity as an objective of Increasing Credit Flow to Women

as well as to SC/ST Sector.

Action :- Banks, OSCSTDFCC Ltd.

b) All the pending applications under KVIB & KVIC are to be disposed off at

the earliest. Banks have to follow scrupulously guidelines regarding

23

adjustment of margin money of REGP of KVIB/KVIC. Under KVIC, Banks

should achieve the quarterly target which has been circulated.

Action :- Banks, KVIC, KVIB, Govt. Line Deptt.

Agenda Item No. 12

Performance under SCC/ACC/KCC

The Commercial Banks have to Issue KCC to all eligible farmers. The

performance of Banks under ACC is not at all satisfactory. Against the annual

target of 9200 ACC, the Banks have issued only 8301, under SCC the Banks

have issued as 39226 SCC against the Annual target of 59100 during 2006-07.

Banks were requested to take all possible measures to achieve the

targets under ACC & SCC for the year 2007-08.

Action :- Banks & Govt. Line Department.

Performance under Pisciculture

All the pending eligible proposals under Pisciculture should be

sanctioned & disbursed on priorities. Banks should sanction Short Term Credit

just like crop loan in agriculture to fish farmers to augment fish productions in

the state. To fulfill the Mission of Hon'ble Chief Minister, Orissa, Banks

operating in the state to double the Inland fish production (1.9 lakhs MT to 3.8

lakhs MT and triple the export i.e. Rs. 350 crores to Rs. 1000 crores in the

coming 3 years i.e. by March 2010). The Banks operating in the State may

finance various Pisciculture scheme such as (1) Development of Freshwater

Aquaculture, (2) Development of Brackishwater Aquaculture, (3) Development

of Waterlogged areas, (4) Integrated Development of Inland Capture

Resources (Reservoirs/Rivers etc.) as approved by Govt. of India is to be given

priority.

Action :- Banks & Govt. Line Department

Agenda Item No. 13

National Housing Loan, House Loan, Rural Housing Finance, Finance

to Ex-serviceman, Finance to Minority Community.

Under the above schemes, Banks have to improve their performance

and correct reporting should be made by Banks.

Agenda Item No. 14

Education Loan

In education loan, every bank to keep in mind the directions given by

the Hon'ble Union Finance Minister that :-

23

"No eligible student should forego higher education for want of money."

Banks should give priority to Education loan & finance more & more to this

sector.

Agenda Item No. - 15

Progress under National Horticulture Board

To promote integrated development of Horticulture in Orissa Banks

were requested to dispose off the applications sponsored by 'NHB' as early as

possible.

Action :- Banks, Govt. Line Deptt., NHB

Agenda Item No. - 16

Final Inclusions

The SLBC has achieved 100% financial inclusions in Pilot Project of

Ganjam Dist. SLBC Orissa has to achieve 100% Financial Inclusions of five

Districts i.e. Cuttack, Puri, Keonjhar, Raigada & Nayagarh which were

identified in April 2007 in a time bound programme. The Gajapati Dist.

dominated with Minority Community was identified in SLBC Meeting for 100%

Financial Inclusions.

To have access vast segment of population especially who are in the

vulnerable sections of the society, Banks should open No Frill A/C in a massive

scale and also to issue GCC under Financial Inclusions. The District

Administrations may extend all possible helps to open no frill account in a big

way.

The methodology which was applicable to achievement of Financial

Inclusions in five districts will also be applicable to Gajapati District.

Under NREGS (National Rural Employment Guarantee Scheme), Banks

are advised to open No Frill Accounts of all beneficiaries on productions of Job

Cards as a major programme to fulfill the corporate goal of Banks under

Financial Inclusions.

Action :- All Banks, District Administration.

The minutes of the meeting of the steering committee of SLBC held on

18.07.07 was placed and ratified by SLBC. Banks, concerned agencies, Govt.

line Department were requested to implement the decisions taken in the

meeting.

Action :- Banks & Govt. Line Department.

23

At last Sri A. P. Chandra, Chairman, Kalinga Gramya Bank, proposed

vote of thanks to Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa, Shri V. K.

Dhingra, Executive Director, UCO Bank & Chairman, SLBC, Orissa, Shri A. K.

Tripathy, Chief Secretary, Govt. of Orissa, Dr. R. N. Bohidar, Development

Commissioner, Orissa, Shri S. P. Nanda, Agriculture Production Commissioner,

Orissa, Shri R. N. Senapati, Principal Secretary to Government, Finance

Department, Govt. of Orissa, Shri G. Jaganmohan Rao, Regional Director, RBI,

Bhubaneswar, Shri S. A. Kareem, Chief General Manager, NABARD, Regional

Office, Bhubaneswar, Shri M. N. Rao, Chief General Manager, SBI, LHO,

Bhubaneswar, Shri A. N. Mohanty, DGM, UCO Bhubaneswar & participants

from Government, other agencies and Banks who have spent their valuable

time in 110th SLBC meeting for taking very important decisions which will

certainly support in a big way in building of Modern Economically vibrant

Orissa where a large chunk of people will have a better living by taking up

sustainable economic activities.

He requested Banks and Govt. line departments to make Govt.

sponsored programmes and SHG credit linkage successful. There should be

adequate credit flow to agriculture and SME sector.

All Govt. sponsored schemes have to be successfully implemented by

the Banks in Orissa with the assistance of Government line Department.

Adequate credit flow must be made to SC/ST Sector and there should be

enhancement of credit flow to Handloom and Handicraft Sector.

Banks and Govt. agencies should work in tandem for diversification of

Agriculture which would help the State for better employment.

"We transform vision to reality"

"Our Culture, Agri-Culture"