State Level Bankers’ Committee
Himachal Pradesh
Convenor: UCO BANK
Secretariat
GENERAL MANAGER & CONVENOR HP SLBCUCO Bank,
Himland Hotel Annexe, Shimla 171001
/Teleph
FaxE-Mail /
0177-2623093
01772625061No.GM/SLBC/2014-15/131
/20.5.2014
All the Participants of
State Level Bankers Committee
Himachal Pradesh
Dear Sir,
REG: PROCEEDINGS OF THE 131ST SLBC MEETING OF HIMACHAL PRADESH HELD ON 24.4.2014 AT SHIMLA.
We enclose the proceedings of 131ST SLBC meeting of Himachal Pradesh held on 24.4.2014 at Shimla.
We would request you to initiate action on the points related to your Department/office/Organization immediately and send us the Action Taken Report as early as possible.
With regards,
Yours faithfully,
(U.C.Sharma)
Encl: As above Deputy General Manager
Copy to:
1. The Chief Secretary, Govt. of HP, HP Secretariat, Shimla
2. Sh. Ateesh Singh, IAS, Director,FI, MOF,DFS, New Delhi
3. The CMD’s Secretariat, UCO Bank, Head Office, Kolkata
4. The EDs Secretariat-1, UCO Bank, Head Office, Kolkata
5. The ED’s Secretariat-2, UCO Bank, Head Office, Kolkata
6. The General Manager, SLBC, UCO Bank, Head Office, Kolkata
7. The General Manager, RBI, RPCD, Shimla
8. The Chief General Manager, NABARD, Shimla.
MINUTES OF 131ST SLBC MEETING OF STATE LEVEL BANKER’S COMMITTEE- HIMACHAL PRADESH HELD ON 27.12.2013 AT HOTEL HILDAY HOME, SHIMLA (H.P.)
WELCOME AND KEY NOTE ADDRESS DELIVERED BY DR.S.K.NANDI, GENERAL MANAGER & CONVENOR SLBC, HIMACHAL PRADESH:
The meeting commenced at 11.00 AM. The list of participants is annexed. Dr. S.K. Nandi, General Manager, UCO Bank & Convenor SLBC HP welcomed Sh. Shrikant Baldi, Principal Secretary to the Govt. of Himachal Pradesh, Sh. I.S.Negi, Regional Director, RBI, Shimla, Sh. S.C.Negi, IAS, Director SOMA, Sh. Priyatu Mandal, IAS, Addl. Director Rural Development , Sh.S.S.Saha, General Manager, NABARD, Sh. Vinay Kumar, General Manager, Punjab National Bank, Sh. Gurnam Singh, General Manager, SBOP and other distinguished guests from Govt. Departments/Banks for attending the 131st HP SLBC meeting.
Dr. Nandi, General Manager, UCO Bank at the outset informed that the meeting was delayed on account of Annual Closing of bank accounts. The Chief Secretary has given his consent to chair the meeting but he has left to New Delhi to attend some urgent meeting.
Dr. Nandi informed that we have to observe code of conduct imposed by Election Commission and restrict our discussions in a way that not to violate the directions and maintain a disciplined atmosphere.
Dr. Nandi informed that performance of the banks during the period under review was excellent and Banks have surpassed the quarterly target fixed under Annual Credit Plan (2013-14) by surpassing 115% achievement over the financial targets fixed upto December, 2013.
He said that Priority Sector loans covering Agriculture, MSE and OPS achieved by 98% and disbursed loan amounting to Rs.6728 Crores. The Non Priority Sector Advances occupied a dominant place witnessing excellent achievement of 212% and disbursed a fresh loan worth Rs.2537 Crores against the quarterly target fixed at Rs.1194 Crores.
He further informed that aggregation of district level targets under Annual Credit Plan for the year 2014-15 has been completed to arrive the state credit plan under which a target of Rs.12932 Crores is finalized in line with potential credit estimates worked out by NABARD. The outlays of the current plan has been increased by 12% over the last year targets.
Dr. Nandi requested the LDMs to comply with the instructions given by RBI for reporting the progress data under ACP in the revised MIS formats w.e.f. 1.4.2014. Henceforth, revised MIS data will be reviewed both at district and State level for review of progress achieved by banks from first quarter ending June, 2014.
Dr. Nandi touched the implementation of DBT/DBTL and stressed the banks to link Aadhaar numbers in the bank accounts of all customers deliberation on the DBT has been temporarily been suspended due to election process but this will be in the regular agenda for the SLBC after issue of new directions from DFS.
Dr. Nandi expressed concern on slow pace of progress so far achieved under RBI roadmap for expansion of Banking Services in all unbanked villages. It is also a matter of concern that LDMs after repeated requests could not identify the potential villages for opening of Brick and Mortar type of banking out let as a result Controller of Banks is taking time to take a decision for opening of rural branches/USBs in accordance with the target given in the roadmap.
Dr. Nandi proposed that all of us will deliberate on the issue regarding inclusion of unbanked villages who are getting regular banking services from the rural branch in a radius of 1-5 Kms so as to treat these villages as financially included and banks should not be insisted to appoint BCAs.
Dr. Nandi announced that maiden branch of Bhartiya Mahila Bank, State Bank of Hyderabad and Catholic Syrian Bank (foreign bank) opened in the state.
Dr. Nandi placed before the August House the performance highlights of the quarter ended December, 2013
- The total Deposits of the Banks as of Dec, 2013 has grown by 15.35% over the corresponding period December, 2012 and advances have y-o-y growth of 17.04%. The growth of advances over deposits has taken a reverse trend. In absolute terms, the total business of the banks in the State has a net increase of Rs.12420 Crores as of December, 2013 over December, 2012 and registered y-o-y of 15.84%
- Priority Sector Advances constitute about 72.41% of the total advances denoting the high flow of credit to the preferred sectors in the hilly State. It is a matter of satisfaction that Banks have achieved all the important national parameters set by RBI except DRI advances.
- The CD Ratio (CDR) of Banks in the State has declined to 58.20% as of December, 2013 from the corresponding position of 63.19% as of December, 2012 mainly due to decline of Investments made by banks in State Government Security/Bonds which form a component of credit for calculation of CD Ratio under Thorat Committee.
- Banks penetration in the State is well set up by having branch net work of 1760 branches as of December, 2013 with more than 80% branches are located in rural areas. Banks have added 54 new branches during the quarter ended December, 2013. Based on Census 2011 data the State has per branch population coverage of 3900 which is good indicator of availability of banking services and one of the best averages in the country. Banking Sector has further strengthened the alternate delivery channels of providing banking services by adding 249 new ATM during the quarter ended December, 2013 and the total numbers of ATMs increased to 1305 as of December, 2013 in the State.
During the period under review Banks in the State have issued 14882 new Kisan Credit Cards (KCCs). I urge my banker friends to intensify distribution of Rupay Credit Card to all KCC holders. Banks have reported the issuance of 64177 numbers of Rupay Credit Card to Farmers in the State.
During the period under review the position of NPA of the Banks in the State has declined to 5.38% of the total advances as of December, 2013 from 5.53% as of Sept, 2013, However, there is need for speedy disposal of pending Certificate recovery Cases of bank by the State designated authority. At this juncture I request the State Government to make provision in the recovery act for lodging of Certificate Cases with Tehsildar/Naib Tehsildar in addition to SDO Civil so that cases filed by banks would get quick disposal.
Dr.Nandi shown his concern regarding the performance of banks under various Govt. sponsored schemes like NRLM, PMEGP and SJSRY was not upto the mark over the allocated targets. The new concept of lending under NRLM requires more sensitization at the branch level and BDOs may assist the Women SHGs about preparation of Micro Credit Plan for getting multiple dozes of bank loan. It is a matter of appreciation that all Coop.Banks in the State has consented to implement NRLM scheme.
Dr. Nandi informed the House that UCO Bank and PNB has finalized their construction agency for construction of RSETI buildings on allocated Government land in 10 districts except District Chamba where the possession of Government land is awaited.
Dr.Nandi informed the House that it is a good opportunity to have an interaction with Hon’ble Governor RBI visiting Shimla in connection with RBI Central Boad of Directors Meeting on 15.5.2014. Last Central Board meeting was held at Shimla in 2007. The Convenor Bank has already communicated the Banks/LDMs for collection of Flash data as of March, 2014 which should reach the Convenor by 28.4.2014 to enable us to prepare a note for special SLBC meeting. He personally requested the Controlling Heads of the Banks to ensure the submission of data of their bank and LDMs in the State.
Dr. Nandi was hopeful that the agenda papers for 131st SLBC meeting is placed before you for detailed discussions. I hope that deliberations in the presence of representative from RBI & NABARD and Government Departments will be result oriented and decisions taken by August House will boost the economic development and inclusive growth in the State.
HIGHLIGHT DR. SHRIKANT BALDI. IAS, PRINCIPAL SECRETARY FINANCE TO THE GOVERNMENT OF HIMACHAL PRADESH ON THE OCCASION OF 131ST SLBC MEETING HELD ON 24.4.2013
v Dr.Baldi appreciated the Convenor Bank for regularly convening the SLBC meetings in the State and said thatit is an appropriate place to discuss banking related issues and arrive decision amicably in a coordinated manner. However, the implementation of decision by bank/line departments appears to be slow and needs appropriate action from the Controllers of Banks.
v Dr. Baldi while reviewing the performance data of Banks said that Banking sector growing in the State in a satisfactory manner. As of December, 2013 total 1760 branches are functioning in the State. He said that Banks has opened 126 new branches from December, 2012 to December, 2013.
v Average per branch serving population in the State is best in comparison with other states as a result the growth in deposit is increasing and people of the State are keeping their Savings with banks. This is a good indicator for capital formation.
v Dr. Baldi informed that Banks have successfully carried out DBT transactions worth Rs. 30 Crores under which amount of subsidy has been transferred in the beneficiary’s bank account through Aadhaar platform. However, the scheme is temporarily suspended in the wake of directions given by Supreme Court.
v Dr.Baldi appreciated the role of Banks for achievements of targets fixed under Annual Credit Plan 2013-14 upto the quarter ended December, 2013.
v Dr.Baldi realized that some of the banking related issues are pending for a long time and are rolling in the Agenda Papers which is not a healthy picture for us.
v He shown concern over the CD Ratio position of the Banks in the State particularly CD Ratio in terms of Domestic deposits and advances which is only 41.57% whereas CD Ratio in terms of Thorat Committee where we add finance from outside is reached at the level of 58.20% as of December, 2013. The decline of CD Ratio by 5% over the position of December, 2012 is a matter of concern which is a adverse impact of lowering down of investment portfolio worth Rs. 1876 Crores in the corresponding period. At present 8 districts in the State having CD Ratio less than 40% and there is a disparity of CD Ratio among the districts in the State. The CD Ratio is high in district having industrial belts. He invited pro-active deliberation on CD Ratio to find out ways and means both from Government side as well as from Banker side to bring improvement in the overall CD Ratio of the State. We should initiate action for productive investment which leads to gear up economic activities in the State.
v Regarding expansion of Banking Services in accordance with the roadmap prepared by banks, Dr.Baldi observed that Banks have opened 126 new branches which is comparatively low against the target fixed under the roadmap. He advised the bankers to concentrate on opening of new branches in the rural areas of the State. At present one bank branch is serving three Gram Panchayats. Under the adverse topographical condition the BC model is the best option left for Banks to enlarge their activities in the un-banked area. He stressed for improvement in working of BC model in terms of Financial Transactions. He guided the banks to install more ATMs in the rural area and the number of ATMs should be at par with the number of bank branches.
v Dr. Baldi shown concern on non achievement of 1% DRI targets by banks. He observed that there may be gap about the awareness of the scheme at the branch level and reluctancy exist in providing loan @ 4% to eligible beneficiaries.
v Dr.Baldi shown concern on the delay took place in construction of RSETI building on Government land and requested to expedite the matter.