OF

134THMEETING OF SLBC HARYANA

HELD ON

DATE: 04.11.2015 (WEDNESDAY)

TIME: 10.00 A.M.

VENUE: HOTEL MOUNTVIEW,

SECTOR 10, CHANDIGARH

CONVENER: SLBC, HARYANA

OF

134THMEETING OF SLBC HARYANA

The 134thmeeting of State Level Bankers’ Committee (SLBC) Haryana to review the performance of banks for the period ended 30th September, 2015 was held on 4thNovember, 2015 at Hotel Mount View, Sector - 10, Chandigarh. Shri Dalip Singh, IAS, Additional Chief Secretary, Revenue, Disaster Management & Consolidation, Govt. of Haryanawas the Chief Guest and ShriGauri Shankar, Executive Director, Punjab National Bank, presided overthe meeting.Dr. R.S. Dhillon, IAS, Additional Secretary Finance, Govt. of Haryana, Shri Gulab Singh, Dy.Secretary, Department of Financial Services, Ministry of Finance, Govt. of India, Madam Rashmi Faujdar, Regional Director, RBI, Chandigarh, ,Shri Anjani Misra, General Manager, RBI, RO Chandigarh, Shri N.M. Sinha, Deputy General Manager, NABARD, Regional Office, Haryana, Dr Rakesh Gupta, General Manager, PNB, HO, New Delhi,Shri Rajesh Jindal, Field General Manager PNB and Convener, SLBC Haryana, were also present in the meeting. The list of participants is as per Annexure.

Shri Rajesh Jindal, Field General Manager, PNB and Convener SLBC extended hearty welcome toShri Dalip Singh, IAS, Additional Chief Secretary, Revenue, Disaster Management & Consolidation, Govt. of Haryana-Chief Guest, Shri Gauri Shankar, Executive Director, Punjab National Bank, & the Chairman – SLBC, Mrs. Rashmi Faujdar, Regional Director, RBI, Chandigarh, Other dignitaries on dais and other distinguished members present in the meeting. Hementioned that besides others, following important issues would be taken up for discussion-

  • Progress made by banks in providing relief to the people affected by Natural Calamities
  • Progress on implementation of PMJDY, 3 Social Security Schemes namely PMJJY, PMSBY and APY.
  • Effective implementation of newly launched Pradhan Mantri MUDRA Yojana (PMMY)
  • Achievements of Banks under National Goals
  • Progress under opening of FLCs in Haryana.
  • Progress under Annual Credit Plan 2015-2016
  • Recovery of advances
  • Govt. sponsored Schemes

Shri Jindal informed the house that a special fund of Rs. 2000 crore has been set up in NABARD by the Central Govt. to make available affordable credit to Agro-Processing units in the designated food parks. He further informed that2 food parks have already been developed by HSIDC at Saha (Ambala District) & Rai (Sonepat District) and third is being fastly developed at Barhi (Sonepat District). These food parks will create demand for various Agriculture & Horticulture produce which will pave the way for the development of Farming community of the State and will make the farmers of Haryana more prosperous.

Shri Jindal informed that Financial Literacy centre is the important support system for success of Financial Inclusion Mission of Govt. of India. It helps in disseminating the significance of Banking & Financial service products amongst the masses and also helps in inculcating the saving habits in urban & rural poor by connecting them with the banking system for inclusive growth of the country. Sh. Jindal further informed the house that 100 FLCs are operating in the State and FLCs at another 39 blocks are yet to be opened.He urgedupon the respective banks to which these blocks have been allocated should open FLCs without any further delay.

He informed that PMJDY is an ambitious plan of Govt. of India and is being implemented with great vigor all over the country to achieve the objectives of Financial Inclusion. In the State of Haryana, though all the households have been covered under the scheme by opening minimum one saving bank account but the need is to keep these accounts activated by educating all the account holders for reaping the inbuilt benefits of the scheme.

He informed the house that Prime Minister Mudra Yojna (PMMY) launched by Hon’ble Prime Minister on 8th April, 2015 aims at increasing the access of small borrowers to credit from formal financial sector. He stressed upon all the stakeholders that in lending, priority should be given to Scheduled Caste/Scheduled Tribe entrepreneurs. He also informed that to boost the progress in enrolment of these social security schemes and to implement PMMY on a comprehensive scale, 116 Town Hall meetings have been organized by LDMs at district headquarters, Tehsil headquarters and in bigger towns which have evoked good response of people. These schemes along with other state run social security schemes would go a long way in improving the economic contribution of different walks of people of the state. He requested all the stake holders to contribute to the maximum towards this significant social mission of the country.

Concluding his address, Shri Jindal requested all the member banks to suitably sensitize the field functionaries to be more sensitive while dealing with Farmers, Self Help Groups and other vulnerable section of the society.

ACTION: BANKS/INSURANCE COs./LDMs

While delivering his keynote address Sh. Gauri Shankar, Executive Director, Punjab National Bank, Chairman SLBC welcomed Shri Dalip Singh, IAS, Additional Chief Secretary, Revenue, Disaster Management & Consolidation, Govt. of Haryana alongwith all the dignitaries on the dais and all other members of SLBC. Sh. Gauri Shankar stated that Shri Singh has spared his valuable time for 134th State Level Bankers’ Committee Meeting in which the performance of banks in the State of Haryana will be reviewed for the quarter ended September, 2015 under various key parameters, PMJDY and Priority Sector Credit, Recovery etc. SLBC Forum will be benefitted from his views and guidance and set priorities for future course of action.

Prior to presenting the report card of performance of banks in the state, he apprised the house the following initiatives taken by RBI:

  • On29th September, 2015 in the fourth Bi-Monthly Monetary Policy Statement 2015-2016;

-reduce the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 7.25 per cent to 6.75 per cent with immediate effect.

-keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL).

-continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14 day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions.

-continue with daily variable rate repos and reverse repos to smooth liquidity.

-consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 7.75 per cent.

Shri Gauri Shankar stated that Govt. of India lays special emphasis on financial inclusion of citizens as it will result in poverty reduction. Exclusion of a large number of people from any access to financial services prevents the growth of our country. Keeping this aspect in view our Hon’ble Prime Minister had launched Jan Dhan Yojana on 28th August, 2014 with an objective to “reach the un-reached” to provide banking facilities and financial services to a vast majority of low income population deprived of these facilities with the use of technology and through Bank Mitras at their door steps. PMJDY’s objective to achieve 100% Financial Inclusion is the key priority for India not only for sustaining the country’s high growth trajectory but also for poverty alleviation at a much faster pace and for bridging the growing rural-urban divide. The State of Haryana had achieved full saturation on 22.12.2014 after putting efforts with missionary zeal by all banks. Banks have opened 51,41,132 accounts upto 30th September, 2015 under PMJDY since its launching on 28.08.2014.Sh. Gauri Shankar appreciated the bankers for performing exceedingly well.

To take Jan Dhan to next level of Jan Suraksha to provide social security cover to all the citizens of the country as a 2nd phase of Financial Inclusion, Hon’ble Prime Minister launched 3 schemes namely Pradhan Mantri Suraksha Bima Yojana (PMSBY) for accidental death insurance, Pradhan Mantri Jeevan Jyoti Bima Yojana (PBJJBY) for life insurance cover and Atal Pension Yojana (APY) for old age pension on 9th May 2015. He urged upon the bankers and the officials from Insurance Companies to accelerate their efforts to extend the benefits of these schemes to a large chunk of masses in the society.

Shri Gauri Shankar saidthat MSME sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. It has been estimated that investment of a million Rupee in fixed assets produces 4.62 million worth of goods. He also informed that MSME Sector in India creates largest employment opportunities for the Indian populace. It has been estimated that investment of Rs.1,00,000/- in fixed assets in the small-scale sector generates employment for four persons.He called upon the bankers to work to boost financing under MSME sectoras it will begoing to give ultimate boost to the economy of the Country.

He further stated that in order to free the small entrepreneurs from the clutches of money lenders, Hon’ble Prime Minister has launched Micro Units Development and Refinance Agency Ltd. (MUDRA) scheme which aimed at “ funding the unfunded” and will instill a new confidence in small entrepreneurs who are contributing so heavily to the task of nation building. Targets under the MUDRA scheme have already been allocated to all the banks. He urged upon all the member banks to rise to the occasion and take steps for not only achieving the targets but to surpass them convincingly.

While taking about RUDSETIRSETIs, he informed that as on 30.09.2015 One RUDSETI and 20 RSETIsare functioningin the state.As at 30.9.2015, 64044 trainees including 33864women & 419handicapped persons participated in 2249 training programmes of Skill Development at these RSETIs. 8532 trainees have been financed by the banks to start their enterprises. He emphasized thatthefocus of RSETIs should be on settlement of trainees in time bound manner.

Shri Gauri Shankar said that Financial Literacy Programme has animportant role to play inFinancial InclusionandFinancial Empowermentof people by creating awareness about the services and facilities being extended by banks. 100 FLCs areoperating in the State. Out of this 87 FLCs are working at Block level. During the Quarter ended September, 2015, 1586camps were organized in which 82598 persons participated. 56393 persons were already having bank accounts and 14940 persons opened saving accounts after attending these camps.

Lauding the achievement of banking system in the State, Shri Gauri Shankar congratulated the banking fraternity in having achieved all the National Goals during the review period from September 2014 to September 2015.

  • Commercial Banks and RRBs have opened 323 new branches thus raising the total number of branches to 4348.
  • Total Deposits of Commercial Banks/RRBs in Haryana have increased to Rs.228497 crore as at September 2015 from Rs. 203698 crore as as September 2014, this showing an increase of 12%.
  • Total Advances have increased from Rs.165349 crore to Rs.183911 crore registering a growth of 11%.
  • Priority Sector Advances gone up from Rs.79566 crore to Rs.100956 crore recording an increase of Rs.21390 crore or 27%. The ratio of Priority Sector Advances to Net Bank Credit of the State as at September 2015 stands at 54.89% as against National Goal of 40%.
  • Agriculture Advances increased from Rs.32155 crore to Rs.38151 crore exhibiting a growth of Rs.5996 crore (19%). The ratio of Agriculture Advances to Net Bank Credit of the State as September 2015 stands at 21% as against National Goal of 18%.
  • Advances to Micro Small and Medium Enterprises have increased from Rs.32171 crore to Rs.46677 crore showing a growth of 45%.
  • Weaker Sector Advances increased by 16%. The ratio of Weaker Sector Advances to Net Bank Credit of the State as at September 2015 stands at 12% as against National Goal of 10%.
  • Overall CD Ration for the State as a whole stood at 80%. No district in Haryana has CD Ratio below 40% as at September 2015.
  • DRI Advances increased by 23%.

The overall achievement of banks under Annual Credit Plan 2015-16 is 93% against six months target. The achievement for the half year ended September 2015 under Agriculture, MSME and other Priority
Sector is 87%, 136% and 70% respectively.

While expressing the concern about mounting NPAs, Mr. Gauri Shankar said that in present scenario the recovery in NPA cases is utmost priority for the banks as recycling of funds is important in banking operations.Also credit is to be monitored so that there may not be further fresh slippage to NPA. He requested the State Government to take necessary steps to improve the recovery climate without which the banking operations take a hit. He also requested Sh. Dalip Singh, IAS, Additional Chief Secretary, Revenue & Disaster Management and Consolidation and Dr. R.S. Dhillon, IAS, Additional Secretary, Finance Govt. of Haryana to pay their personal attention to this problem and help the Bankers for recovery of their over dues.

While concluding Shri Gauri Shankar, Executive Director, Punjab National Bank and Chairman SLBCon behalf of bankers, once again assured the State Government, Ministry of Finance, Govt. of India, Reserve Bank of India and other stakeholders of full cooperation from banking fraternity towards strengthening and uplifting the socio-economic conditions of the people of the State.

ACTION: BANKS/INSURANCE COs./LDMs/STATE GOVT./SLBC

Shri Dalip Singh, IAS, Additional Chief Secretary, Revenue, Disaster Management & Consolidation, Govt. of Haryanawas the Chief Guest while addressing the house said that SLBC is very important Forum not only to review the performance of banking system but also the platform to share new ideas and thoughts to augment the growth of the State Economy. This forum is playing a crucial role in transforming the economic life of the people of different walks of the society. He congratulated the bankers and other stakeholders for their good work and achievements especially in PMJDY. He also touched upon the following points:

  • There is a need of Bankersto be more near to the people either through branches or BCAs so as to have easy accessibility of banks to the people of the State.
  • Contribution of the banks in transformation of the society is always expected. Banks have been doing this by providing loans to the Farmers, Industry, Students, Women’s, Minorities and other needy section of the Society. However, efforts should be on creation of infrastructure required for different growth contributors so that multiple benefits can accrue.
  • The emphasis of State Govt. for development of infrastructure couple with a proximity to the National Capital has made it favourable destination for the new investors.
  • Govt. of India has already extended the area of NCR and it will go a long way in the overall growth of the State and will provide more avenues to the bankers for deploying of their funds.
  • As per Govt. of India guidelines minimum 15% of Priority Sector Advances are to be provided to the Minorities whereas in the State of Haryana only 9% of Priority Sector Advances have been provided to the Minorities in the State as on 30.09.2015. There is a need to make special efforts by all so as toreach to the level which is expected.
  • Similarly 10% of the total advances are to be provided to the weaker section of the society as per the National Goal against which banks in Haryana have surpassed this goal by provided 12% of advances to Weaker Section, banks have done fairly well in this area.
  • As part of Weaker Section Advances a sum of Rs.1400 crores provided to SC/ST beneficiaries in the State.
  • Looking at the performance of the bank in the State, it is gratified to note that CD Ratio of bank in the state is 80% which is above the national goal of 60%. There is a need not only to maintain the same but toaugment it further as ample opportunities exist to deploy their funds.
  • Banks in Haryana should priorities their area of financespecifically for Agriculture like Water Conservation, Crop diversification, Land Up-gradation, Organic Farming, Food safety and other farmers supporting schemes.
  • Unemployment hinders the growth of the State. For creating employment opportunities the role of the bank is very important. Rural Self Employment Training Institutes Financial Literacy Centres which have been opened by the banks should go to the rural areas for educating and showing right path to the rural youth specifically to the weaker section of the society which is required for success of Micro Units & Development Agency Ltd., to generate Self employment. These Institutions can also contribute in the Social Security Scheme like “Beti Padao Beti Bachao” abhiyan being implemented in the State.
  • The initiative of the bank in Swach Bharat Abhiyan is good but more participation of all the banks is expected. Each bank should adoptminimum of 1 or 2 villages in each block of the state under this.
  • In the end he assured all support to the bank from the State Govt.in executing all the development plansand also called upon thebanks to contribute substantially to make Haryana State a vibrant Economic Hub of the Country.

ACTION: BANKS/SLBC

Madam Rashmi Faujdar, Regional Director, RBI, Chandigarh in her address to the house touched upon the following points:

  • Govt. of India has, vide their notification dated April 8, 2015, has reduced the criteria of crop loss from 50% to 33% for providing input subsidy (compensation) to the affected farmers in case of natural calamities. Accordingly, as per RBI directives, banks while rescheduling of loans, may allow a maximum period of repayment upto 2 years (including moratorium period of 1 year) if the loss is between 33% and 50% and 5 years (including moratorium period of 1 year) if loss is 50% or more. As per instructions of RBI Chandigarh to SLBC Haryana, the banks have time up to November, 2015 to consider those accounts which meet the criteria of loss between 33% to 50% for rescheduling in the villages affected by natural calamity which occurred in March, 2015 and that for the request for any extension of time for rescheduling would not be entertained by RBI.
  • The progress in providing banking outlet to villages with population below 2000 in the state of Haryana has been 98.55%. The banks which are lagging behind i.e. Canara Bank(9), IDBI (2), Indian Bank(2), PNB(2), State Bank of Hyderabad(2), State Bank of Bikaner & Jaipur(5), United Bank of India(4), UCO Bank(9) and Yes Bank(1) and Sarva Haryana Gramin Bank (4) have to complete their 100% targets at the earliest which were required to be achieved by banks by August, 2015.
  • Instructions relating to holding of minimum of one camp per rural branch per month are not being adhered to. FLCs at Ambala and Jhajjar (HARCO Bank) have held 1 camp during the quarter, FLCs at Kaithal, Fatehabad and Karnal (OBC) have held Zero, 1 and Zero camps respectively.
  • The Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) was constituted in the year 2007-08 for a period of Five years with a corpus of Rs. 500 crore contributed by Govt. of India, RBI and NABARD in the ratio of 40:40:20.Keeping in view the various developments over the years, GoI has merged the FIF and FITF to form a single Financial Inclusion Fund (FIF). The new FIF will be administered by the reconstituted Advisory Board constituted by GOI and will be maintained by NABARD. The objectives of FIF shall be to support developmental and promotional activities including creating of FI infrastructure across the country, capacity building of stakeholders, creation of awareness to address demand side issues, enhanced investment in Green Information and Communication Technology (ICT), increased technological absorption capacity of financial services providers/users with a view to secure greater financial inclusion. The fund shall not be utilized for normal business/banking activities.
  • In terms of recent instructions issued by RBI, banks have beenadvised to ensure that their lending policies for MSEs were ‘streamlined’ and made ‘flexible’ in order to empower the officials concerned to take quick decisions on credit delivery to MSEs on regular basis and specifically at the time when unit is becoming sick.
  • Under ‘Start up India’ programme launched on independence day, Hon’ble Prime Minister of India urged 1.25 lakh branches of banks in the country to resolve to disburse loans for start-ups to the tribals in the locality where there is any tribal habitation, and where there is no tribal habitation, the branch can provide the loans to a dalit or a tribal of women, give financial support to them and thus 1.25 lakhs dalit entrepreneurs to come up. SLBC is advised to implement the above ‘Start up India’ programme and monitor the progress made by banks in this regard during the ensuing meetings and also submit a report to RBI. The first such report may be furnished by December 31, 2015.

ACTION: BANKS/SLBC