1

117th

MEETING OF STATE LEVEL BANKERS’ COMMITTEE, KERALA

AGENDA AND BACKGROUND NOTES

1. ADOPTION OF MINUTES

The minutes of the 116th

Meeting of SLBC, Kerala held on 22nd September, 2015 has

already been forwarded to the members vide Convener‟s letter SLBC 35 325 2015 GN dated

9th

October, 2015.

The House may adopt the said minutes.

2. PENDING ISSUES

2.1. PRIMARY SECTOR

2.1.1. Introduction of a Credit Guarantee Scheme for Agriculture Term Loans similar

to CGTMSE (Pending since July 2012)

In the SLRM 2012, it was suggested that in view of the mounting NPA under Agriculture

Term Loans after implementation of ADWDRS, banks were facing serious issues. It was

recommended to suggest introduction of a Guarantee Scheme similar to CGTMSE,

particularly for Term Loans under Agriculture.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum decided to pursue the

matter.

2.2. SECONDARY SECTOR

2.2.1. Issues involved in the implementation of PMEGP Scheme

(Pending since March 2014)

Panchayats are issuing licenses only after installation of machinery and banks insists for

Panchayat licenses/NOC before disbursement of loans. Citing this reason many PMEGP

applications are getting returned.

A common direction is necessary for minimizing beneficiary grievances in this front.

Date : 18th

December, 2015 (Friday)

Time : 10 a.m.

Venue : Hotel Residency Tower

Govt. Press Road, Trivandrum

2

In the 115th

Meeting of SLBC, Kerala held on 16.03.2015 at Trivandrum, Sri. James

Varghese, IAS, Principal Secretary, Local Self Government Department informed the

following 3 stage process for issue of license for running an industry.

(i) Building permit

(ii) License to install

(iii) Running permit/licence

He informed that building permit is given once building is ready. License to install is

immediately given on production of various NOCs of various statutory agencies and once it

is installed running permit is given. Running license can be given only after installing the

equipments concerned and this can be given only in the final stage. He informed that once

the license to install is given the banks can make the disbursement. Responding to a query,

he informed that provisional licensing system is not there and that may not be possible

because Department is the final authority to see all the conditions are fulfilled.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum decided that the

SLBC shall take up the matter with Chief Secretary and to the concerned department as it is

a hindrance for sanction of loans. The matter has been taken up with Government.

2.2.2. PMRY 2006–07 & 2007–08 - Non receipt of Subsidy

(Pending since August 2009)

Subsidy on PMRY loans granted during 2006-07 and 2007-08 are yet to be released to

various banks in few accounts.

The RBI has informed that the matter is pending with the Government and RBI is closely

following up. The RBI has asked for reporting to it the pending details from the banks.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum decided that SLBC to

collect the bank wise position and take up the matter further.

2.3. TERTIARY SECTOR

2.3.1. Land Allotment for construction of RSETI Buildings

(Pending since July 2012)

Land allotment pertaining to the RSETIs of the following districts are pending

District Present status Department where the matter

is pending

Kozhikode Land not allotted District Collector Kozhikode.,

(two places have been identified )

Palakkad Land identified - Forwarded by

District administration to Rural

Development Commissioner -

forwarded to LSGD Gok - forwarded

to Revenue Department - for clearance

Pending with Revenue Department.

Revenue (G) Department,

Gok.(Since the file is not

coming forth, the proposal

would be resubmitted)

3

In the Steering Committee Meeting of SLBC, Kerala held on 01.12.2015, the representative

from Commissionerate of Rural Development informed the following:

In Kozhikode, two places have been identified (i) Land with Education Department

(ii) land in a purambokku not paid tax for the past 25 years.

Palakkad - the file is not located in the Revenue (G) Department and proposal would be

resubmitted.

Kollam - the file is sent to Land Revenue Commissioner by the Revenue (G)

Department.

Pathanamthitta, – as the litigation may prolong, alternate land may be looked for.

Other Issues related to RSETI

Waiver of One time building tax and annual building tax charged by LSGs for

RSETI buildings -SLBC has written to Revenue Department vide letter no SLBC

35/261-2015 GN dt 2015 Jul 31 and reply is awaited

In the 116th

Meeting of SLBC, Kerala held on 22.09.2015, representative from

Commissionerate of Rural Development informed that the matter has been taken up with the

Revenue Department.

2.3.2. Computerization of Land Records & & Creation of a Central Registry titled

National Mortgage Repository (Pending since June 2006)

(a) To computerise land records in the State of Kerala – This will enable financing banks to

make online noting, regarding their lien and help to bring down the transaction cost for

getting various certificates from village office.

(b) To establish a National Mortgage Repository (NMR) in the State that will function in a

similar manner as vehicle registration where hypothecation is marked on the

Registration Book of the owner or a Search made in Registrar of Companies Office to

ascertain certain details pertaining to companies.

This is aimed at bringing in more transparency and prevention of frauds on property

transactions.

Kollam Land identified - Forwarded by

District administration to Rural

Development Commissioner -

forwarded to LSGD Gok - forwarded

to Revenue Department - for clearance

- Pending with Revenue Department

Revenue (G) Department, Gok

(the file is sent to Land Revenue

Commissioner by the Revenue

(G) Dept)

Pathanamthitta MOU Signed. But writ petition filed

by Block Panchayat President in the

Kerala High Court against allotment -

Govt has to file an affidavit - Draft

waiting for Law Department approval

Law Department, Gok

(as the litigation may

prolong, alternate land

may be looked for)

4

In the 115th

Meeting of SLBC, the representative from Revenue Department informed that

the process is continuing and digitalization process is completed only in Palakkad District.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum noted that during the

Steering Committee Meeting of SLBC Kerala held on 10.09.2015, representative from

Revenue Department informed that online pokkuvaravu (Revenue record mutation) has

started. Computerization of records in selected villages would be started soon and

thereafter it would be extended to other villages. Computerization process is going on and

some more time is required for completing process.

In the absence of representatives from Revenue Department, the forum directed SLBC Cell

to write a formal letter with details to Secretary of Revenue Department and make a

reference to the Chief Secretary. The matter has been taken up with the Government.

2.3.3. Denial of E-Tender access facilities to customers of all banks except SBT

(Pending since March 2014)

Few bank branches have complained that E-Tender access is deprived to their customers as

the access is restricted for SBT only. Presently SBT alone is permitted to handle E-Tender

business of Government of Kerala. Because of this other bank customers are forced to open

accounts with SBT and is causing lot of inconveniences to them.

E-payment access for all banks is accepted by an apex committee of the Government. The

GO is awaited. Planning & Economic Affairs Department may inform the developments.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum noted that Planning

& Economic Affairs Department has taken up the matter with IT Department for getting

their opinion. The forum decided to pursue the matter. The matter has been taken up with

the Government.

2.3.4. Noting of Equitable Mortgage created in favour of the banks in Revenue Records

& Noting of lien of the Bank in Thandaper Register of Village Office for the

loans granted by the Banks (Pending since March 2014)

(a) At present there is no practice of noting/recording the Equitable Mortgage (EM)

transactions (ie. Mortgage by deposit of title deeds) in the revenue records of the State

Government. Also there are no provisions for the same in the revenue regulations of the

State of Kerala.

In a recent judgment of the Hon‟ble Supreme Court of India in State of Haryana v.

Narvir Singh & another, reported in (2014) 1 Supreme Court Cases 105, wherein it has

been held that banks and financial institutions who accept a mortgage by deposit of title

deeds can request the Revenue Authorities to enter the factum of such mortgage in the

revenue records. In the facts of the aforesaid case, the Revenue Authorities had taken

the stand that only a registered mortgage can be noticed in the revenue records. The

view taken by the Revenue Authorities has been held to be unsustainable.

5

Now that the law has been settled by the Hon‟ble Supreme Court, it is requested that

when the bank accepts mortgage by deposit of title deeds (Equitable Mortgage),

provision shall be enabled for the bank to request the Revenue Authorities to note the

same in the revenue records.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum proposes that the

Government may introduce a reasonable fee for this facility and suggested the following

fee tariff:

Loan up to Rs. 10 lakhs : Rs. 500

Loans above Rs. 10 lakhs up to 25 lakhs : Rs.1000

Loans above Rs. 25 lakhs : Rs.2500

Fee for releasing the charge : Rs. 200

(b) As of now, there is no legal obligation on the part of the Village authorities to do so. If

noting in Thandaper Register is made legally mandatory, it will help to prevent

fraudulent transactions.

In the absence of representatives from Revenue Department, the 116th

Meeting of SLBC,

Kerala held on 22.09.2015 at Trivandrum decided to pursue the matter with Revenue

Department. The matter has been taken up with the Government.

2.3.5. Registration of UDS [Un Divided Share]

As per the prevalent practice in the State of Kerala sale deeds of flats will be executed only

after completion of construction of the entire apartment complex. Till then the lending banks

normally remain virtually unsecured. Now, we propose to insist on transfer of Undivided

Share in the land at the initial stage itself so that mortgage can be created with the same.

However, if a sale deed is executed for the completed flat at the time of transfer of

completed flat, stamp duty will have to be paid for the entire consideration. There is no

provision for set off of the stamp duty paid for registration of UDS. Builders and borrowers

are reluctant to cooperate when we insist on registration of UDS. Provision for set off may

be brought in the Kerala Stamp Act, 1959.

The State Level Review Meeting of SLBC, Kerala held on 15th

& 22nd

June, 2015 decided to

pursue the matter with Registration Department, Government of Kerala.

In the 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum, Dr. W. R. Reddy,

IAS, Principal Secretary, Taxes Department, Government of Kerala informed that Taxes

Department had examined the matter and that a remission order issued under stamp act is

necessary to resolve the issue. It requires the cabinet approval. He requested SLBC to

submit a formal request with full details so as to examine the matter by the Department.

6

2.3.6. Registration Act, 1908 – State amendment of Section 17 (1) (f)

Government of Kerala has amended certain provisions of the Registration Act, 1908, vide

the Registration (Kerala Amendment) Act, 2012, which came into effect from 13.09.2013.

Pursuant to the amendment, Sub clauses (g), has been inserted in Section 17 of the

Registration Act, 1908, making compulsorily registrable, the “Power of attorney creating

any power or right of management, administration, development, transfer or any other

transaction relating to immovable property of the value of one hundred rupees and upwards

other than those executed in favour of father, mother , wife, husband, son, adopted son,

daughter, adopted daughter, brother, sister, son-in-law or daughter-in-law of the executant”.

This requirement has adversely affected lots of NRI customers. They are necessitated to

come to India for registering the power of attorney if it is executed in the name of the any

person other than the relatives mentioned above. We are of the view that we may seek

exclusion of NRIs from the purview of registration of Power of Attorneys as above.

Moreover, in-laws, ie father-in-law, mother-in-law, brother-in-law and sister-in-laws can

also be suggested to be included in the list of the relatives mentioned above.

In the Steering Committee Meeting of SLBC Kerala held on 03.06.2015, representative

from Registration Department informed that registration act is central act and state

amendment can be made by State Government but the process would need Presidential

sanction. Department is ready to submit a proposal to Central Government.

The State Level Review Meeting of SLBC, Kerala held on 15th

& 22nd

June, 2015

concurred with the above and decided to pursue the matter with Registration Department,

Government of Kerala.

In the 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum, Dr. W. R. Reddy,

IAS, Principal Secretary, Taxes Department, Government of Kerala informed that Taxes

Department had noticed the matter and requested SLBC to submit a formal request with full

details as to what exactly the requirement was, so that the Department can take a decision.

If it is feasible, then there is no problem for including the in-laws also in the list of relatives

mentioned in the clause.

2.3.7. Issues relating to Stamp duty on Branch & ATM lease deeds

The Kerala Finance Act of 2014 amended certain provisions in the Kerala Stamp Act of

1959. One such is insertion of a new clause (e) in the Schedule Sl no 5 Agreement or

Memorandum of Agreement

As per this clause stamp duty payable on an agreement or memorandum of agreement if

relating to installation of an ATM between a bank and the land owner or renewal thereof

shall be Rs.2500/- per year.

Grievance of the Banks is that, where a bank takes a building on lease as premises for the

Branch office and if we are placing an ATM Machine within these premises, the

Sub-Registrars are asking to pay the stamp duty @ Rs.2500 p.a for the ATM space

separately.

7

It is requested that in such cases this additional stamp duty should not be charged. Representative of the Registration Department informed that the Department shall propose necessary amendment to the article 5 (E) schedule to Kerala Stamp Act 1959. In the Steering Committee Meeting of SLBC Kerala held on 03.06.2015, representative of the Registration Department informed that the Department shall propose necessary amendment to the article 5 (E) schedule to Kerala Stamp Act 1959. He requested support from banks for making a draft proposal for submitting to Government. The State Level Review Meeting of SLBC, Kerala held on 15

th & 22

nd June, 2015

concurred with the above and decided to pursue the matter with Registration Department, Government of Kerala. In the 116

th Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum, Dr. W. R. Reddy,

IAS, Principal Secretary, Taxes Department, Government of Kerala informed that Taxes Department had examined the issue and the system based on AGs observations while they are doing the audit of local bodies accounts. The issue would be examined and sorted out.

2.3.8. Waiving of stamp duty on loan sanctioned against pension to Senior Citizens Banks are now providing finance as term loans with higher limits to suit to the urgent needs of various pensioners. For availing such loans, pensioners have to bear the cost of stamps for executing the loan agreements.

Nowadays pensioners or senior citizens are extended many benefits from the Government as Social Security measures. Hence, in this spirit, to avoid penalizing of such expenses from the pensioners‟ hand, it is proposed the agenda that Stamp duty can be waived on Loan agreements when the loan is sanctioned against pensions to senior citizens. The 116

th Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum decided to take up

the matter with Taxes Department, Government of Kerala. The matter has been taken up with the Government.

2.3.9. Matter related to Service Charges for the DBT for scholarships under e-grantz

(Suggested by Directorate of Scheduled Caste Development Department)

Many branches of Banks are demanding Commission for the distribution of Scholarship under e-grantz. Strict direction may be given to all Banks to avoid such requests in future.

The matter came up for discussion in the 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum, wherein Dr. Inder Jit Singh, IAS, Principal Secretary, SC Development Department, Government of Kerala informed that the Government of India has announced DBT schemes in almost all the districts. When public sector banks deal with the Government programmes through DBT, as per the information available to us there is no commission involved and it is the uniform practice all over the country for all the Government schemes whether of Central or State Government.

This issue was applicable not merely to SC department, but to all departments and local bodies implementing the Government schemes.

8

The meeting decided that SLBC cell shall conduct a meeting of Canara Bank, Indian Overseas Bank, Indian Bank, State Bank of India, State Bank of Travancore and Kerala Gramin Bank and officials from Finance Department and SC Development Department to sort out the matter. The meeting was held on 2015 December 8

th by the Additional Chief Secretary

Dr. Inder Jit Singh IAS.

He requested the concerned banks to reconsider the issue of collecting the service charges on DBT transactions.

The issue of release of subsidy from Department for the loans sanctioned by the Banks was also discussed in this meeting.

The ACS desired that there should be timely and adequate flow of credit to SC & ST, who are the most deprived sections of the society.

Operational issues of the agencies involved (Banks & Department) should not be obstacles to the purpose.

The SLBC had placed a list of 203 cases where subsidy was to be released from the Department to the Banks. Of this 64 were current cases and 139 pertained to previous financial years. The ACS instructed the department to enquire into the reasons of non release of subsidy in these 139 cases and to release the subsidy in the eligible cases positively within 30 days.

Wherever unutilized subsidy is lying with any bank, the same has to be refunded to the department. The Directorate of SCD and the SLBC together shall collect a list of such cases from banks.

The ACS directed that in future, the department shall release the subsidy for functioning units, within one month from the date of receipt of claim from banks, after completing the inspection and other formalities by SCDD.

In future, the issues related to the release of subsidy etc. have to be resolved at meetings of the Banks and Department officers at BLBC, District and SLBC level. Such meeting shall be convened at regular intervals so that issues if any can be resolved through mutual discussion.

The ACS also informed that the Government proposes to enhance the total amount of assistance under the scheme from the present Rs 3 lakhs to Rs. 5 lakhs.

2.3.10. Non availability of Government of India Interest Subsidy on Education loans

granted by KSCARD Bank & Non availability of Central & State Governments

Interest Subsidy to Education Loans availed from District Co-operative Banks

& PACS (Pending since July 2012)

(a) Education Loans granted by KSCARD Bank also to be provided with interest subsidy

extended.

The 116th

Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum noted that the Steering Committee of SLBC Kerala that met on 10.09.2015 noted that the Government of Kerala has written to the Ministry of Human Resources and the reply is awaited. The bank/Co-operative Department may follow up further. In the Steering Committee Meeting, the representative from Planning & Economic Affairs Department informed that the Government of India has requested IIM Bangalore to conduct a study and give report.

9

The forum decided to pursue the matter.

(b) In the District Development Council (DDC) Meeting of Kasaragod District held on

30.09.2013, Sri. N. A. Nellikunnu M.L.A. Kasaragod raised the issue of non availability

of Central Govt / State Govt Interest Subsidy to Education Loans granted by Co-op.

Banks in the District.

It was informed in the DDC that, this issue of Cooperative Banks not coming under the

purview of the Interest Subsidy Scheme on Education Loans of the Central Government

& State Government has been deliberated time and again in the Block Level Banker‟s

Committee and the District Level Consultative Committee. This matter, as per the

decision in the DLRC/BLBC, was also referred to the SLBC, for taking up with Central

Government & State Government. It was also informed that SLBC had already taken

up the matter with the Government, but there is no favourable response so far.

In the above circumstances, it is requested to take up the matter again with Central/State

Government for including District Cooperative Banks & PACS also under the purview

of interest subsidy in addition to State Co-operative bank and other scheduled

Commercial banks. This will support DCBs and PACS which are extending credit to

this sector in a big way and also prevent discrimination of Education Loan borrowers in

the matter of interest subsidy.

The 115th

Meeting of SLBC, Kerala held on 16.03.2015 at Trivandrum decided that SLBC

Cell to collect data from other cooperative banks and make a representation to the

Government with Ministry of Finance, Government of India and Planning Department,

Government of Kerala.

Vide letter No.6042/F(RO)/2015/Plg dated 01.06.2015 of Planning & Economic Affairs (F)

Department, Government of Kerala informed that “the matter regarding Inclusion of

District Cooperative Banks and Primary Agriculture Credit Societies under the Education

Loan Interest Subsidy Scheme of State Government has been examined by the State

Government thoroughly. In the current financial situation, the State Government is not in a

position to take on such huge financial liability. Hence it is not possible for the State

Government to include District Cooperative Banks and Primary Agriculture Credit

Societies under the Education Loan Interest Subsidy Scheme of the State Government”.

The 116

th Meeting of SLBC, Kerala held on 22.09.2015 at Trivandrum noted that vide letter

No.6042/F(RO)/2015/Plg dated 01.06.2015 of Planning & Economic Affairs (F)

Department, Govt. of Kerala informed that “the matter regarding Inclusion of District

Cooperative Banks and Primary Agriculture Credit Societies under the Education Loan

Interest Subsidy Scheme of State Government has been examined by the State Government

thoroughly. In the current financial situation, the State Government is not in a position to

take on such huge financial liability. Hence it is not possible for the State Government to

include District Cooperative Banks and Primary Agriculture Credit Societies under the

Education Loan Interest Subsidy Scheme of the State Government”.

The forum decided to pursue the matter.

10

3. FRESH ISSUES

3.1. PRIMARY SECTOR

3.1.1. Agriclinics and Agribusiness Centres (ACABC) Scheme (Suggested by NABARD)

In the background of poor credit linkage, GoI is providing a lot of priority to the captioned

scheme to boost agricultural production through adoption of technology and thus better

farming practices by farmers as also to provide self-employment opportunities. During the

11th

Bankers Review Meeting on the captioned scheme, GoI has advised all the Banks to

adopt “One Branch One Agriclinic” concept. Bank branches have been advised to identify

trained candidates through contact with Nodal Training Institutes (NTIs)

(http://www.agriclinics.net/nticontact.asp) in their region.

Further, Banks are advised to expeditiously clear applications related to the scheme, by

bringing the inadequacies, if any, in the project report, to the notice of concerned, NTIs.

Banks may identify one Nodal Officer each, at the Controlling Office level. The name and

contact details of the nodal officer may be forwarded to NABARD RO as also MANAGE

(National Institute of Agricultural Extension Management, Rajendranagar, Hyderabad,

Telangana 500030, Phone: 040 2401 6702)

SLBC may bring this to the notice of all the Banks and also monitor the progress of the

scheme on a quarterly basis.

The Steering Committee that met on 01.12.2015 decided to place the matter in SLBC for

information of all the Banks and to review the progress of the scheme on a quarterly basis.

3.1.2. Common Errors by Bankers in Crop Insurance Coverage

(Suggested by SLBC Cell)

SLCCI requested the SLBC to bring these issues to the notice of the banks in Kerala

Under RKBY (NAIS), crop insurance is compulsory for all the loans granted for

cultivation of notified crops in notified areas. (All short term crop production loans)

Responsibility to insure lies with the lending institution and not with the farmers

The following omissions are observed from bank side.

Not collecting Insurance premium for the loan account

Collecting the premium , but not remitting it to AIC

Remitting to the AIC after cutoff date

Not covering certain loan categories , even though as per loan documents they are

granted for cultivation of notified crops in notified area

All the above four can result in grave consequences

A ready reckoner issued by the Agriculture Insurance Company for Rabi Crop Insurance

2015-16 is given in Annexure-8.1.

The Steering Committee of SLBC, Kerala that met on 01.12.2015 decided to place the

matter in SLBC for information and necessary action from member banks.

11

3.2. SECONDARY SECTOR

3.2.1. Implementation of Coir Udyami Yojana (Suggested by Coir Board)

Ministry of Micro, Small and Medium Enterprises, Government of India has conveyed its

approval for continuation of the Central Sector Scheme „Coir Udyami Yojana‟ (CUY) being

implemented by Coir Board during the XII Plan period at an outlay of Rs.80.00 Crores with

certain modifications. The pattern of assistance under the Scheme is 40% of the project

cost as Govt. of India Subsidy, 55% as Bank Credit and 5% as beneficiary contribution.

Any coir projects with project cost upto Rs.10.00 lakhs would cover under the Scheme.

Besides this the unit can avail 25% of the project cost as working capital however the

working capital component shall not be considered for subsidy. The scheme is opened to

Individuals, Companies, Self Help Groups, Non Governmental Organizations, Institutions

registered under Societies' Registration Act 1860, Production Co-operative Societies, Joint

Liability Groups and Charitable Trusts. The assistance will be made available through all

the Scheduled Commercial Banks listed in the 2nd Schedule of the RBI Act, Regional Rural

Banks, Co-operative Banks, SC/ST/OBC Finance and Development Corporations.

Review of implementation of Coir Udyami Yojana during 2015-16

Ministry of MSME, Government of India has allocated an outlay of Rs.20 Crores for setting

up of 825 coir units in the coconut growing states of the country under Coir Udyami Yojana

during 2015-16. Out of which a target of 150 units at an outlay of Rs.2.90 Crores has been

fixed for Kerala State. However, after a lapse of 6 months Coir Board could able to utilize

only Rs. 31.87 lakhs out of the outlay allocated for the State by establishing 36 coir units

under the Scheme. The details of subsidy released to the Banks under the Scheme during

the current year are as follows:

Sl.

No. Bank

No. of

Units

Subsidy

released

(Rs. in lakhs)

1 Canara Bank, Mullackal Br. 2 8.00

2 Bank of Baroda, Cherthala Br. 1 4.00

3 Corporation Bank, Pathiyoor Br. 10 4.00

4 Federal Bank, Thumpoly Br. 1 4.00

5 Kerala Gramin Bank, Cheruthana Br. 1 0.27

6 Union Bank of India, Karthikapally Br. 20 7.89

7 South Indian Bank, Muthalamada Br. 1 3.71

Total 36 31.87

From 1st April 2015 onwards Board is implementing the Scheme as per the modified

operational guidelines. So far Board has forwarded 375 applications to different Banks in

Kerala. Out of which Board has received 149 loan sanctions from the Banks and these

sanctions are under scrutiny at Board‟s Field Office for uploading the same through the

online portal of CUY. Remaining 226 applications are pending with different Banks.

12

The Banks may be requested to co-operate and speed up the process of sanctioning loans

under Coir Udyami Yojana in order to utilize the fund fully, earmarked for the year

2015-16.

Reconciliation statement of the funds released in Kerala under pre-revised Scheme of

CUY

Coir Board is implementing the Coir Udyami Yojana (formerly known as REMOT Scheme)

during the XI Plan period onwards. The Scheme has been approved for continuation during

the XII Plan period also with certain modifications. From 1st

April 2015 onwards Board is

implementing the modified Scheme.

As per the operational guidelines of the pre-revised Scheme, Board had to execute MoU

with Banks for implementation of the Scheme. Accordingly, Board had signed MoU with

16 Nationalized Banks and subsidy towards the loans sanctioned under the Scheme has been

disbursed through the Nodal Bank Branches of these Banks. Under pre-revised Scheme

ie., from 2007-08 to 2014-15 Board had released subsidy of Rs.3214.66 lakhs to the Nodal

Banks designated for implementation of the Scheme in Kerala. The details are as follows:

Sl.

No. Nodal Bank

Subsidy

released

(Rs. in lakhs)

1 SBT, Cherthala 578.14

2 SBI, Kalavoor 581.75

3 IOB, Alappuzha 667.26

4 Indian Bank, Guruvayur 0.80

5 Central Bank of India, Alappuzha 134.74

6 Canara Bank, Mullackal 571.99

7 Bank of Baroda, Alappuzha 122.04

8 Union Bank of India, Alappuzha 557.94

Total 3214.66

While releasing subsidy the Board had requested the Nodal Banks to furnish the updated

beneficiary-wise reconciliation statement of the funds released as subsidy, in the MIS format

of the Board. We have also instructed the Banks that, before approaching for fresh grant

from the Board, the Banks should ensure that all the grant released by Coir Board earlier

have been reconciled with reference to actual disbursement of term loan and balance

unutilized grant to be refunded to the Board. The Board had sent several letters to the Nodal

Banks for furnishing beneficiary-wise reconciliation statement in the MIS format. However

the Banks have not furnished the beneficiary-wise reconciliation statement of the subsidy

released during 2007-08 to 2014-15, in the prescribed format. In the wake of

commencement of modified Scheme of Coir Udyami Yojana, the Ministry is pressuring the

Board to settle the accounts of the funds released under the pre-revised Scheme.

The Committee may kindly give necessary directions to the above Nodal Banks for

furnishing the beneficiary-wise reconciliation statements of the funds released under pre-

revised Scheme of CUY in the prescribed format without any further delay.

13

The Steering Committee that met on 01.12.2015 noted that the list of pending applications

and pending reconciliation has been forwarded to the Controlling Offices of all banks. The

committee requested the Coir Board to provide the updated pending list for placing in the

SLBC. The Coir Board is in the process of reconciling the data received from Banks.

Thereafter, the updated pendency will be reported to the SLBC cell.

3.2.2. Roll out of “Start up India Programme (Suggested by NABARD)

In continuation with the Hon‟ble Prime Minister‟s independence day address announcing

the roll out of „‟Start up India “Programme , DFS, GOI has advised that :

(i) Appropriate action to formulate suitable schemes for ensuring implementation of Prime

Ministers directive on assisting at least one dalit/tribal entrepreneur and woman entrepreneur

by each bank branch may be initiated.

(ii) As the details of the measures taken in this regard is to be reported to Prime Minister‟s

office after three months, all branches may be instructed to ensure strict compliance to

provide at-least one loan to Dalit/Tribal entrepreneur as start-up to the tribal in the locality

where there is any tribal habitation and where there is no tribal habitation, the branch can

provide loans to a Dalit or a tribal and formulate a special scheme for women entrepreneurs

to promote start up of women entrepreneurs under „‟Start up India Programme”.

SLBC may request all the banks to ensure compliance in the matter and report and progress

in the “Start up India programme” for review during the next SLBC meeting.

The Steering Committee that met on 01.12.2015 decided that, SLBC Cell to circulate the

formats among Controlling Offices of banks and to ask them to report the monthly progress

on the Startup India programme directly to NABARD. The format for reporting the

progress is given below.

Name of Bank Assistance provided under Start up India Programme

No of branches in

the state

SC ST Total

No of

a/c

Amount

(Rs in lacs) No of

a/c

Amount

(Rs in lacs) No of

a/c

Amount

(Rs in lacs)

3.2.3. PMEGP Pending Applications 2015-16

The Steering Committee of SLBC, Kerala that met on 01.12.2015 noted that PMEGP

pending applications 2015-16 are circulated to concerned banks (Shown in Annexure-8.2).

3.2.4. Subsidy linked Mudra loans (Suggested by SLBC Cell on Directives from DFS)

The various credit linked programmes of the State Government & its agencies for

Entrepreneurs may be integrated with the MUDRA YOJANA.

14

3.3. TERTIARY SECTOR

3.3.1. Norka Department Project for Return Emigrants [NDPREM] (Suggested by

Non-Resident Keralites‟ Affairs Department)

As part of initiating policies and programmes for ensuring a sustainable livelihood to return

emigrants, the State Government has introduced a scheme, viz, Norka Department Project

for Return Emigrants (NDPREM) to promote self employment ventures by the returnees by

arranging loans to them by Nationalized Banks with Capital/ Interest subsidy. The Canara

Bank and Union Bank of India have entered into MoU with Norka Roots for providing loans

to return emigrants for their self employment ventures. The period of MoU with Canara

Bank and Union Bank of India expired on 31.03.2015. Despite assurance from the above

banks, the extension of MoU is yet to be materialized. In the previous meetings of State

Level Bankers Committee, Hon‟ble Chief Minister as well as Hon‟ble Minister (Norka)

have raised the issue. Though there were assurances from other banks to support the scheme

for NRKS, only the South Indian Bank has signed MoU with Norka Roots so far.

In these circumstances, the Government requests for wholehearted cooperation from all the

banks to support the scheme for return emigrants is once again placed before SLBC and it is

also requested to extend the MoU with Norka-Roots by Canara Bank and Union Bank of

India, at the earliest.

The Steering Committee that met on 01.12.2015 noted that that Canara Bank has signed

fresh MoU with the Norka Roots, Government of Kerala on 23.11.2015. Renewal of the

MoU by Union Bank of India is pending. Other than that only South Indian bank has signed

MoU.

It is informed by the representative of Indian Overseas Bank that they have taken up the

matter with their Board of Directors for getting approval.

The meeting decided that draft MoU signed by Canara Bank with Norka Roots, Government

of Kerala would be circulated among all banks before the SLBC meeting. The draft has been

since circulated to all member banks.

The committee decided to place the matter in SLBC.

3.3.2. Loan Waiver Scheme of Scheduled Tribes Development Department (Suggested

by the SC/ST Development (D) Department)

As per the GO (P) No.71/2015/SCSTDD dated 01.10.2015, Government have accorded

administrative sanction to implement the Loan Waiver Scheme for the scheduled tribe

beneficiaries of Kerala. The project has been designed to write off the debts of the members

of scheduled tribes availed from Co-operative institutions, Government Departments,

Nationalized Banks, Kudumbashree units amounting up to Rs. 1,00,000/- (Including

principal amount, interest, penal interest and other charges) of which the repayment period

had expired on 31.03.2014. As per the GO (Ms) No.54/2015/SCSTDD dated 14.07.2015

Kerala State SC/ST Development Corporation Ltd. has been entrusted as the disbursing

agency for the implementation of loan waiver scheme.

15

It is very urgent to implement the project within this financial year and hence it is requested

to include “Loan Waiver Scheme of Scheduled Tribes Development Department” as an

agenda for the next SLBC meeting in November 2015. It is requested to discuss the

procedure to be adopted for the following particulars, for this purpose, in the meeting.

(i) Consolidation and handing over of loan details of Scheduled Tribes (loans as per the

conditions applicable) from nationalized banks to SC/ST Development Corporation.

(ii) Mode of transfer of money by SC/ST Development Corporation to banks.

[GO (P) No.71/2015/SCSTDD dated 01.10.2015 & GO (Ms) No.54/2015/SCSTDD dated

14.07.2015 are shown in Annexures-8.3 & 8.4]

The Steering Committee that met on 01.12.2015 deliberated the matter and placed the

following suggestions to Scheduled Tribes Development Department.

(i) NPA loan account holders also may be considered

(ii) In case of liability exceeding Rs 1 lakh , if the bank/ financing institution is willing to

give a one time settlement/ waiver for the surplus amount , such case should be

accepted in the waiver scheme. A letter from the Bank/Financial Institution to that

effect may be accepted. The waiver amount shall be transferred to the account

subject to the liability being brought down to Rs 1 lakh per the terms of the One time

settlement /bank waiver

(iii) The definition of family may be given clarity

(iv) Income Tax payees need not be considered for benefits under the scheme

(v) All Scheduled Commercial Banks may be included

In connection with the operational part of the scheme the Steering Committee has made the

following recommendations.

To adopt the strategy applied in Fishermen debt relief scheme

The Corporation may invite applications from the concerned borrower

The loan details may be got certified by the financing institution (Banks- branch

Manager, Co-operative societies - The secretary, Government department - the head

of the office, Kudumbasree - District Mission Co-ordinator)

The department may convert the data into an electronically sortable form such as

MS excel/spread sheet

The multiple applications from same family /same applicant may be weeded out

The claims may be scrutinized and relief amount arrived as on the applicable date

The finalized list may be circulated to the banks to confirm the correctness of the

bank particulars loan account ,

Banks shall confirm to the Corporation within a reasonable period

The bank/ financing institution shall also take a suitable decision on the interest and

other charges arising in the account after the applicable date

16

Each bank/Institution shall also designate a nodal branch to receive the claim from

the Corporation and inform the details

The corporation shall transfer the amount to the designated branch/office , which in

turn shall credit it to the individual accounts within a time frame

3.3.3. Kiosk banking – Inactive banks – Allotted SSAs transferring to Active Banks

(Suggested by Akshaya)

Kiosk banks have been started to serve the purpose of financial inclusion and Akshaya

Kiosks have played a vital role in this. However, this Kiosks allocated to Akshaya of certain

banks remain inactive because of software problem or lack of interest from the part of these

banks. Though many attempts have been made, the Kiosks of these banks are unable to do

any business. Hence, it is suggested that the Kiosks of the following banks may be permitted

to transfer to other willing banks who give sufficient support to Kiosk banking.

Sl.

No. Name of Bank

No. of Allotted

Locations

No. of Akshaya

centres Mapped

Kiosks made

operational

1 Union Bank of India 112 87 43

2 Catholic Syrian Bank 43 43 13

3 Federal Bank 182 140 140

4 Central Bank of India 30 20 15

In the Steering Committee Meeting held on 01.12.2015, it is informed that the above banks

are not cooperating. Link Bank Managers are not aware of the issues. The problem is with

regard to the software using by banks.

The Committee decided that all banks should activate their Kiosks. The Committee decided

to convene an exclusive meeting with Akshaya and concerned banks to thrash out the issue

before the ensuing SLBC meeting.

The meeting was held on 8th

December, 2015 and the following decisions were taken.

(a) The Officers of the concerned banks, LDM and officers of Akshaya jointly shall visit

the affected kiosks and study the issues including the technology issues and resolve

them. Wherever issues still persist, the same will be escalated to SLBC for resolution.

(b) The banks will also arrange a meeting of Akshaya Kiosk Operators, Link branches,

technical officers of the bank and officers of Akshaya and discuss face to face and

resolve the ground level issues.

(c) These two exercises will be completed by 15th

of January 2016.

(d) Sub KO facility would be provided by the banks wherever required and feasible.

(e) The job utilization of KO/Sub KO would be measured in percentage and reviewed by

periodically by the concerned banks.

(f) Each bank may consider providing an exclusive technical person at Central Office

level to attend Akshaya issues.

(g) Software issues would be suitably addressed to remove the technical glitches.

17

3.3.4. Illegal organized resistance to recovery measures initiated by Kerala Gramin

Bank in Wayanad District (Suggested by KGB)

In Wayanad district, Kerala Gramin Bank (KGB) is the largest bank in terms of branches

and also business as revealed by the following table:

Data for Wayanad District as at Sept 2015

(Amt in crores)

Sl

No Bank

No of

Br

Deposits Advances CD

Ratio Amt % Share Amt % Share

1 KGB 29 399 17.7 630 22.3 157.8

2 Canara Bank 15 346 15.3 482 17.1 139.5

3 SBT 10 378 16.8 385 13.6 101.7

4 Federal Bank 5 253 11.2 274 9.7 108.6

5 SBI 12 283 12.6 264 9.3 93.0

All Comm. Banks 116 2257 100.0 100.0 100.0 100.0

(Source: LDM, Wayanad)

Further the district also contributes to major portion of KGB‟s NPA. Of the Rs. 630 cr

advances of the bank in Wayanad district, 13.2% (Rs. 82.86 cr.) is NPA. Further, about 15%

of the NPA of the bank is contributed by the district.

Thus for the survival of the bank, there is an urgent need to reduce the NPA level for which

the Bank has announced generous OTS/compromise schemes for NPAs especially those

under Education and Agriculture loan schemes. Further intensive steps for recovery such as

due notices, frequent personal contacts, OTS/compromise settlement through various

adalaths etc. were undertaken by KGB to make the borrowers regularize their accounts. In

whichever cases such measures have not yielded any substantive results, KGB has

proceeded with legal recourses available.

But there are conscious efforts on the part of self-styled famers‟ organizations by

discouraging borrowers from settling their dues by assuring them to get their loans written

off. Further such organizations such as Farmers Relief Forum, Harithasena, Kerala Karshaka

Sangamam etc. aided by certain political parties are resisting sale of properties under

SARFAESI/Court attachments by discouraging prospective buyers from participating in the

auction processes. Such organizations are even issuing life threats to bank officials initiating

legal recovery measures. The print and visual media are occasionally sensationalizing such

instances and portraying the legal measures initiated as anti-farmer policies of financial

institutions.

The recently reported incidents at KGB Irulam and Kaniyambetta branches are furnished

below:

(1) Incident at Irulam Branch:-One Mr. Sukumaran availed a working capital loan of

Rs.84000/- for trading business on 14.07.1999.Though the loan became fully overdue in

2002, branch didnot go for any harsh recovery measures considering the general economic

distress that prevailed in Wayanad then and allowed time to the defaulter to pay the dues, in

installments. But Sri.Sukumaran did not repay a single installment in the 9 years that

18

followed and Bank had no other option but to file suit. The suit filed in 2011 was decreed in

Bank‟s favor. But as Sri. Sukumaran did not honour the decree, the Bank filed EP. Though

the land owned by him was put for sale as per the court order, the sale did not materialize as

there were no bidders due to coercion from self-styled farmers‟ organizations. Meantime,

the bank made several attempts to get the account settled under OTS, but the defaulter did

not co-operate. Ultimately as a last resort, the Bank filed „arrest and detain‟ petition before

the court. Though several options like appealing before higher courts etc. were available to

the defaulter, he volunteered to go to jail and did not even plead for mercy of the court. It is

clear that the intention of the defaulter was to escape from repayment by creating sensation

and media hype. On the same day of the defaulter‟s arrest on 30-10-2015,a mob of about 40

people laid siege to our Irulam branch and the branch staff was not allowed to go out till 1

AM, the next day. The bank had offered to settle the loan under OTS but the mob,

consisting mostly of the defaulters of the area, was adamant that the bank write-off the loan

and return the mortgage documents. Resultant to the unrelenting stand of the bank, the mob

finally agreed to court arrest at about 1.30 pm. Consequently, as per the orders of the

District collector, keeping in view the ongoing panchayat election process, the branch was

kept closed till 10-11-2015 and could be opened only on 11-11-2015,that too after a High

court order duly directing the district authorities to provide protection to the branch and its

officials. Though the defaulter still has not made any repayments, it is reliably learned that

there is a move by various local organizations to start an agitation to get the entire loan dues

of Sri.Sukumaran written off and get his EM documents released.

(2) Kaniyambetta Branch: -One Sri. Thomas availed a personal loan of Rs.250000/-for

consumption purpose in the year 2000from the branch by mortgaging 1.72 acres of land

which is now valued at about Rs.24 lakhs. The borrower subsequently died and the legal

heirs did not repay the dues. When all the efforts of the branch to recover the decretal dues

of Rs. 27 lakhs from the legal heirs of the borrower failed, they initiated SARFAESI action,

against which the parties moved the High court. The case was referred to the Legal Service

Authority several times, but due to the adamant stand taken by the parties, a settlement

could not be reached. In the last sitting, Bank was even ready to settle the case for Rs. 10

lakhs, making a huge sacrifice. Though Bank‟s stand was appreciated even by the learned

Judge, the parties continued their adamant stand and threatened that they will go to the

media. Finally, on 19-11-2015 a news item, highlighting the defaulters‟ version of the

matter appeared in „The Hindu‟. The branch has subsequently contacted the borrower for a

generous OTS, the borrower expressed inability as self-styled farmers‟ organizations are

forcing the party not to repay any dues. In this case also, the self-styled champions of

farmers‟ cause are planning to spearhead agitations against the Bank.

Congenial recovery climate is a precondition for ensuring adequate credit flow in an area

and currently the recovery climate in the district is vitiated by vested interests and political

parties aimed at gaining short term advantages. Resultant to the activities of such antisocial

elements the Irulam branch of the bank was forced to shut down for 11 days causing

disruption of banking business in the area. The matter is expected to snow ball into a larger

issue keeping in view the impending elections to the state legislature. SLBC may take up the

matter at the appropriate level for ensuring an amiable climate for banking in the district.

19

In the Steering Committee Meeting of SLBC, Kerala held on 01.12.2015, the representative

from Planning & Economic Affairs Department, Government of Kerala informed that in this

context, Government have given suitable direction to the district administration for

amicable settlement. The committee decided to place the matter in SLBC to bring to the

notice of Government.

3.3.5. Land mafia exploiting small & marginal land holders (Suggested by Planning &

Economic Affairs Department)

ÌÞCí ÕÞÏíÉ Èßç×ÇßAæMGí µ×í¿ÄÏÈáÍÕßAáK ÎâKᢠ¥FᢠæØaí

µß¿MÞ¿B{áU µá¿á¢ÌBæ{ øfßAÞæÈK ÈÞ¿cJßW ØÎàÉßAáK çÜÞY

ÎÞËßÏÞ Ø¢¸¢ ºÄßÕßWæM¿áJß ¦ÇÞø¢ èµAÜÞAß ÍàÎÎÞÏ Äáµ

ÕÞÏíÉæÏ¿áJí ÏÅÞVj ©¿ÎÏíAí Äáºí»ÎÞÏ Äáµ ÈWµáK 'µïÌîߢ·í" ®K

ÕÞÏÉÞ ÄGßMí È¿AáKÄÞÏáU ÉøÞÄß ØVAÞøßæa dÖiÏßWæMGá. ùßÏW

®Øíçxxí µºîÕ¿JßÈí ²øá ÈßÏdLÃÕáÎßÜïÞæÄ ÕÞÏíÉ ÈWµáK ÌÞCߢ·í ÈÏ¢

§ÄßÈí µÞøÃÎÞµáKÄÞÏß ÉøÞÄßÏßW ºâIßAÞÃßAáKá. µâ¿ÞæÄ ØíÅÜÕßÜ

ÕViߺî dÉçÆÖB{ßW ÌÞCí ¥ÇßµÞøßµ{ᢠçÜÞY ÎÞËßÏÞµ{ᢠÄNßW

¥ÕßÙßÄ §¿ÉÞ¿áµZ È¿AáKÄÞÏᢠ¥ÄáÕÝß ÕÜïÞVÉÞ¿¢ çÉÞÜáU

ØíÅÜB{ßW ÎâKᢠ¥FᢠæØaí µß¿MÞ¿B{áU Æ{ßÄí ÆøßdƵá¿á¢ÌBZ

ÕÞÏíÉÞÄGßMßÈí §øÏÞæÏKᢠÉøÞÄßÏßW ÉùÏáKá.

ØVËÞØß ÈßÏÎJßæÜ 34_Þ¢ ÕµáMí dɵÞø¢ ØßÕßW çµÞ¿Äßµæ{ ØÎàÉßAÞX

ÈßçøÞÇÈÎáIí. ÈàÄßÈcÞÏÕߺÞøà µâ¿ÞæÄ ÌÞCáµZAí çÕIß µ¿¢

Éßøßæºî¿áAÞX ØíÅÞÉßÄÎÞÏßGáU Debt Recovery Tribunal (DRT) æÈ

ØÎàÉßAÞX ÎÞdÄÎÞÃí ÉøÞÄßAÞVAí ¥ÕØøÎáUÄí. §Õ ÄGßMßÈßøÏÞÏ

µá¿á¢ÌBZAí ÈàÄß Èßç×ÇßAæM¿áKÄßÈᢠùßÏW ®Øíçxxí Ø¢¸B{áæ¿

Õ{VºîAᢠµÞøÃÎÞµáKáæÕKᢠÉøÞÄßÏßW ÉøÞÎVÖÎáIí.

3.3.6. Implementation of the Interest subvention scheme under NRLM, in Category II

districts (Suggested by NABARD)

As per the guidelines governing implementation of the Interest subvention scheme under

NRLM, in Category II districts, SRLM (Kudumbasree in Kerala) has to provide interest

subvention to the NRLM compliant SHGs who have accessed loan from Banks. However it

has come to our notice that WSHGs promoted by agencies other than Kudumbasree are not

getting the benefit of subvention, since Kudumbasree is reluctant to issue “NRLM

Compliant” certificate to WSHGs promoted by agencies other than Kudumbasree.

In view of the above and in order to ensure extension of subvention benefit to all WSHGs, it

is suggested that SLBC may resolve to approach GoI suggesting that Interest subvention

benefits to WSHGs in category II districts may also be delivered through nodal banks /

NABARD (for RRBs & Coops) as is being done in the case of other than Category II

districts.

20

Further, all Banks are requested to issue guidelines to the branches on NRLM interest

subvention, so as to ensure smooth implementation of the programme.

The Steering Committee that met on 01.12.2015 noted the following:

In Category II Districts - Kudumbasree Mission may give clarity

In category I districts (Palakkad & Malappuram) data shows that claim level from banks

have to improve

CATEGORY I NRLM CLAIM MADE IN KERALA STATE

A) MALAPPURAM

BANK

2013-14 2014-15

NO OF

SHGs

AMOUNT

(Rs) NO OF

SHGs

AMOUNT

(Rs)

Canara Bank 443 2754973 3123 10348188

CBI 28 205968 48 229123

Corp Bank 4 14806 12 64788

Dhanlaxmi 0 0 246 56852

Indian Bank 124 595407 171 1433814

IOB 49 154731 253 1787882

PNB 3 6094 50 82476

SBI 251 1344242 245 1029902

SBT 217 705676 225 490615

Synd Bank 6 32410 1 9295

UCO Bank 0 0 5 16701

Union Bank 6 13237 363 612065

Vijaya Bank 6 15201 30 162808

TOTAL 1137 5842745 4772 16324509

CATEGORY I NRLM CLAIM MADE IN KERALA STATE

B) PALAKKAD

BANK

2013-14 2014-15

NO OF

SHGS

AMOUNT

(Rs) NO OF

SHGS

AMOUNT

(Rs)

Bk of Baroda 0 0 6 5786

Bank of India 0 0 126 1318738

Canara Bank 1165 6319418 3576 11981820

CBI 16 141212 35 657274

Corp Bank 25 155053 45 301381

Dhanlaxmi 0 0 502 147233

Indian Bank 265 1373545 301 1711219

21

CATEGORY I NRLM CLAIM MADE IN KERALA STATE

B) PALAKKAD

IOB 173 923657 222 1286679

PNB 135 365726 443 1607962

SBI 2639 8061586 2566 6684907

SBM 17 139840 27 191475

SBT 716 2676878 773 1978698

Synd Bank 8 67213 11 56664

Union Bank 65 237670 1177 4193997

Vijaya Bank 365 726913 520 1859802

TOTAL 5589 21188711 10330 33983635

The statistics does not include KGB and Co-operative Banks, as their claims are

routed through NABARD.

Except Palakkad & Malappuram, all other districts are coming under Category II.

Kudumbashree is requested to take suitable decision in this regard. The Committee decided

to place the matter in SLBC for information and necessary action from the concerned banks

and Kudumbasree.

3.3.7. Submission of Utilization Certificate (Suggested by NABARD)

All Banks are required to forward utilization certificates under GSS on receipt of entire

subsidy in respect of beneficiaries. In spite of forwarding the list of defaulting Banks to

SLBC, many Banks are still not submitting the utilization certificates. This is being viewed

seriously by Govt. of India.

SLBC may advise the Banks to submit the same urgently and also advise them to strictly

adhere to the time limits for submission of Utilization Certificate, as per the guidelines of

the schemes.

The Steering Committee that met on 01.12.2015 decided that NABARD may inform details

pending utilization certificate in an electronically sortable form to SLBC so as to follow up

the matter with the concerned banks. The committee decided to place the matter in SLBC to

bring this to the notice of all banks with a request to strictly adhere to the time limits for

submission of Utilization Certificate, as per the guidelines of the schemes and submit the

same directly to NABARD periodically.

3.3.8. Refund of Subsidy (Suggested by NABARD)

Banks, while refunding subsidies to NABARD, are not providing details like the scheme,

name of the beneficiary, reason for refund etc., the details of which have to be captured in

the database maintained by NABARD.

SLBC may advise the Banks to provide all required information while forwarding the

intimation regarding refund, to NABARD.

22

The Steering Committee that met on 01.12.2015 decided to place the matter in SLBC to

bring this to the notice of all banks with a request to provide all required information while

forwarding the intimation regarding refund, to NABARD.

3.3.9. NPA position under group loans [SHG/JLG/MCB] (Suggested by NABARD)

(i) SLBC may review NPA position under SHG/NHGs, so as to take stock of the extent

of incidence of NPA in the sector and to suggest necessary action for rectification /

reduction in NPA.

(ii) All stake holders to be advised to extend support to FIs in their NPA reduction efforts

(iii) A model format for collecting data in this regard (to be collected separately for direct

linkage/linkage through NGOs/ Kudumbasree and linkage under Govt. Sponsored

Programmes) is shown below:

Name of the

bank

Number of

SHGs credit

linked

Amount of loan

outstanding to

SHGs

Amount of

NPA under

SHG lending

Number of SHG

accounts designated

as NPA

The format, with suitable refinements may be circulated to all the banks for submission of

data within the time frame as decided by SLBC

The Steering Committee that met on 01.12.2015 decided that formats for collecting data on

SHG and JLG separately would be prepared and place the same in the SLBC for

information of banks with request to submit the data within the time frame. The format for

reporting appended below.

Quarterly Statement on NPA in SHG, JLG & MCG to be submitted to SLBC

Name of the bank :

Report as on :

SHG JLG Agri Non Agri JLG /MCG

Total outstanding

No of a/c

Total outstanding

Amount (Rs Lacs)

No of

NPA A/c

Amount of NPA

(Rs Lacs)

Total outstanding

No of a/c

Total outstanding

Amount (Rs Lacs)

No of

NPA A/c

Amount of NPA

(Rs Lacs)

Total outstanding

No of a/c

Total outstanding

Amount (Rs Lacs)

No of

NPA A/c

Amount of NPA

(Rs Lacs)

3.3.10. NRLM (National Rural Livelihood Mission) Annual Financial Target - 2015-16

The Steering Committee of SLBC, Kerala that met on 01.12.2015 noted that NRLM targets

for 2015-16 are circulated among banks (Shown in Annexure-8.5).

23

3.3.11. NULM (National Urban Livelihood Mission) State Target - 2015 -16

The Steering Committee of SLBC, Kerala that met on 01.12.2015 noted that NULM targets

for 2015-16 are circulated among banks (Revised targets, have been allotted for Individual,

Micro Credit Groups & SHGs are shown in Annexure-8.6). The committee noted that

following.

The SULM will be processing the applications and forwarding to the Banks, by

December 31st

Banks to complete the sanction & Disbursement process by 2016 January 31st

Margin to be fixed @ 5 % (as in SJSRY)

Interest subvention shall not be provided up front .Instead, it will be credited to the

account as and when received from the Urban Local Bodies

NULM - charging interest and claiming interest subvention

Interest to be charged at applicable rates at monthly intervals.

Regular subvention – ie., difference between actual interest charged & at 7% p.a.

shall be claimed from Urban Local Body in the format prescribed @ monthly

intervals by 10th

of the succeeding month.

ULB shall settle the claims on a quarterly basis.

Interest subvention, claim, on receipt from ULB to be credited to loan account

Additional Subvention @ 3 % for prompt repayment (only to women SHGs ) – claim

to be made to ULB after the liability in the loan account is cleared in full & credited

to the running account of the WSHG on receipt .

3.3.12. Issue and Activation of Rupay Cards

(Suggested by SLBC Cell on Directives from DFS)

The issue and activation of Rupay Cards have to be completed on a mission mode

Every bank branch has to conduct camps to issue Rupay Cards

No of

BSBDA

accounts

opened

No

Rupay

cards

issued

%

Coverage

No of

Rupay

cards

activated

% of

activated

cards

No of

zero

balance

BSBDA

accounts

% of

Zero

Balance

Accounts

1906129 1439406 76% 1031324 72% 615654 32%

The detailed list is shown in Annexure-8.7.

24

4. Review of Performance under Priority Sector Advances

4.1. Review of Priority Sector Advances (Disbursement) as at September 2015

- ACP 2015-16 achievements (Refer Annexures 9.11 & 9.12)

The performance of banks with reference to the Annual Credit Plan 2015-16 as at

September 2015 with Bank wise and District wise break up is furnished in the annexure.

The abstract of the performance as at September 2015 under ACP 2015-16, is as follows.

(Rs. in Crores)

Bank / Banking Group

Primary Sector Secondary sector Tertiary Sector Total Priority Sector

Advances

Target Ach. %

Ach. Target Ach.

% Ach.

Target Ach. %

Ach. Target Ach.

% Ach.

State Bank Group

8481 2689 31.71 3625 1768 48.77 6204 1644 26.5 18311 6101 33.32

Nationalized Banks

12016 5654 47.05 5318 1767 33.23 7336 1566 21.35 24669 8988 36.43

RRB 4778 2971 62.18 1309 448 34.22 1825 512 28.05 7913 3931 49.68

Private Sector Banks

7279 3415 46.92 4139 1638 39.57 5623 1004 17.86 17041 6057 35.54

Cooperatives 15365 5241 34.11 4399 1661 37.76 16674 6662 39.95 36438 13565 37.23

KFC 0 0 0 390 55 14.1 175 119 68 565 174 30.8

Total 47919 19970 41.67 19180 7337 38.25 37837 11507 30.41 104937 38816 36.99

% to Total Disbursement

51.45

18.90

29.64

100

4.1.1. Overall Performance under Annual Credit Plan

25

The banking sector of the State has disbursed Rs. 38816 crores to the priority sector

during the fiscal 2015-16 as at September 2015.

Priority Sector disbursement as at September 2015 is 37% of the annual target.

26

4.1.2. Performance under Primary Sector

The primary sector, which comprises of the agriculture sector, accounted for 51.5% of the total disbursements in priority sector.

Primary Sector achieved 41.67 % of the annual target as at September 2015 An amount of Rs. 19970 crores was disbursed to the sector as at September 2015

against the year-end target of Rs.47919 crores.

27

4.1.3. Performance under Secondary Sector

In Secondary Sector, the State achieved 38.25 % of the annual target as at September 2015.

Banks in the State have disbursed Rs.7337 crores till September 2015 under secondary sector.

Secondary Sector accounts for 18.90% of the disbursement to priority sector in the State.

28

4.1.4. Performance under Tertiary Sector

Tertiary sector accounts for 29.64 % of the total disbursement to the priority sector in

the State.

State disbursed Rs.11507 crores under tertiary sector till September 2015.

30.29% of the Annual Target under Tertiary Sector was achieved by the State as at

September 2015.

29

4.2. Review of Priority Sector Advances (Outstanding) as at September 2015

(Refer Annexure 8.11)

4.2.1. Performance versus National goals

(Figures in percentage)

Performance under the above 5 parameters reveal that the state is well above the Set

target (National Goal) in all parameters except the DRI Advances.

Sl. No.

Parameter Goal

% March 2012

March 2013

March 2014

Sept. 2014

March 2015

Sept. 2015

Variation

Mar.’15 To

Sept.’15

Sept.’14 To

Sept.’15

1 Priority Sector Advances

to Total Credit 40 57.3 56.72 59.14 58.43 58.83 59.99 1.16 1.56

2 Agriculture Advances to

Total Credit 18 24.3 25.73 25.42 25.6 26.36 24.99 -1.37 -0.61

3 Weaker Section Advances

to Total Credit 10 19.3 19.94 21.72 21.2 21.53 23.38 1.85 2.18

4 DRI Advances to Total

Credit 1 0.02 0.03 0.03 0.03 0.02 0.02 0 -0.01

5 Credit Deposit Ratio 60 75.6 76.41 68.66 69.83 68.37 65.74 -2.63 -4.09

30

The growth in outstanding advances under sub sectors of priority sector as at September

2015 is summarized as follows.

(Rs. in Crores)

Parameter

Outstanding Variation

March 2013

March 2014

Sept. 2014

March 2015

Sept. 2015

Mar ’13-Mar ’14

Mar ’14-Sept ’14

Mar ’14- Mar ’15

Mar ’15-Sept ’15

Sept ’14-Sept ’15

Priority Sector Advances

99318 113555 119436 128655 133659 14237 5881 15100 5004 14223

Agriculture Advances

45055 48812 52330 57656 55680 3757 3518 8844 -1976 3350

MSE Advances - Priority

23563 32069 33291 35730 39373 8506 1222 3661 3643 6082

Weaker Section Advances

34911 41701 43325 47092 52082 6790 1624 5391 4990 8757

SC Advances 3284 4664 4588 4390 4416 1380 -76 -274 26 -172

ST Advances 729 1008 1321 1164 985 279 313 156 -179 -336

DRI Advances 43.93 66.54 56.88 49.43 44.22 22.61 -9.66 -17.11 -5.21 -12.66

31

32

33

4.2.1.1. Performance of the Banking sector inclusive of Co-operatives (excluding PACs)

as at September 2015

The performance of the banking sector inclusive of Co-operatives is summarized as follows:

Performance of Co-operative Sector under Vital Banking Statistics

(Amount Outstanding)

(Rs in. Crores)

Parameter

September. 2015 Share of

Co-operatives to Total

Co-operative Sector

Commercial Banks

Commercial Banks + Co-operatives

Branches 957 6040 6997 14

Total Deposits 47360 338902 386262 12

Total Advances 32124 222791 254915 13

Total Business 79484 561693 641177 12

Priority Sector Advances 27010 130754 157764 17

% Priority Sector Advances 84 59 143 xx

Agriculture Advances 7568 55680 63248 12

% Agriculture Advances 24 25 49 xx

MSME Advances 2757 39373 42130 7

CD Ratio 68 66 66 xx

34

4.2.2. Priority Sector Advances in Total Advances – Bank Group wise

(Refer Annexure 8.11)

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’15- Sept. ’15

Priority Sector Advances

113555 119436 128655 133659 5881 15100 5004 14223

Banking Group wise Performance under

Priority Sector Advances as at September 2015

(Rs. in Crores)

Banking Group

Total Advances Priority Sector Advances % PSA to Total

Adv. (Sept’15)

March 2015

Sept. 2015

Growth Mar.’15- Sept.’15

March 2015

Sept. 2015

Growth Mar.’15- Sept.’15

State Bank Group 63175 61328 -1847 37506 39255 1749 64.01

Nationalized Banks 74734 76308 1574 48237 51215 2978 67.12

RRB 10467 10984 517 9447 9934 487 90.44

Private Sector Banks 70330 74171 3841 33466 33255 -211 44.84

Grand Total 218706 222791 4085 128655 133659 5004 59.99

35

36

4.2.3. Agriculture Advances (Refer Annexure 8.12)

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’15- Sept. ’15

Agriculture Advances

48812 52330 57656 55680 3518 8844 -1976 3350

The outstanding advances to agriculture sector in the State have decreased by

Rs. 1976 crores compared to March 2015.

But there is a Y-o-Y growth of Rs.3350 crores in Agricultural advances outstanding

of the state.

Agricultural Advances is 24.99% of Total Advances as at September 2015 which is

above the mandatory norm of 18% fixed by RBI.

Banking Group Wise Performance under

Agriculture Advances as at September 2015

(Rs. in Crores)

BANK

Total Advances Agriculture Advances % Agri. Adv to

Total Adv. (Sept. ’15) Mar-15

Sept. 2015

Growth Mar.’15- Sept.’15

Mar-15 Sept. 2015

Growth Mar.’15- Sept.’15

State Bank Group 63175 61328 -1847 13986 12477 -1509 20.34

Nationalized Banks 74734 76308 1574 20000 22632 2632 29.66

RRB 10467 10984 517 4812 6427 1615 58.51

Private Sector Banks 70330 74171 3841 10014 14144 4130 19.07

Grand Total 218706 222791 4085 48812 55680 6868 24.99

37

38

4.2.4. MSME Advances (Priority) (Refer Annexures 8.13)

Advances to Micro, Small and Medium Enterprises are now part of Priority Sector (MSME).

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’15- Sept. ’15

MSME Advances

32069 33291 35730 39373 1222 3661 3643 6082

4.2.4.1. Banking Group wise MSME Advances as at September 2015

(Rs. in Crores)

Banking Group

Micro, Small and Medium Enterprises as at September 2015

Micro Enterprises Small Enterprises Medium Enterprises Total MSME

No. Amt No. Amt No. Amt No. Amt

State Bank Group 61859 4076 23562 4281 1699 933 87120 9290

Nationalized Banks 308998 5873 49852 7163 20310 1937 379160 14973

RRB 149538 1185 1504 135 88 7 151130 1327

Private Sector Banks

146131 4750 36566 7890 797 1143 183494 13783

Grand total 666526 15884 111484 19469 22894 4020 800904 39373

39

4.2.5. Advances to Weaker Section (Refer Annexure 8.16)

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’14- Sept. ’15

Weaker Section Advances

41701 43325 47092 52082 1624 5391 4990 8757

Advances to the Weaker Section grew by Rs. 4490 crores in Weaker Section

advances by during the first half of the fiscal.

Year-on Year increase as at September 2015 was Rs. 8757 crores (20.21%).

40

4.2.6. Advances to SC/STs (Refer Annexure 8.16)

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’15- Sept. ’15

SC Advances 4664 4588 4390 4416 -76 -274 26 -172

ST Advances 1008 1321 1164 985 313 156 -179 -336

Total SC/ST Advances

5672 5909 5554 5401 237 -118 -153 -508

41

Banking Group wise Performance under SC/ST advances as at September 2015

(Rs. in crores)

BANK

SC Advances ST Advances

Outstanding % O/S to total

Outstanding % O/S to total No. Amount No. Amount

State Bank Group 214828 3328 75.36 60265 713 72.39

Nationalized Banks 95534 869 19.68 19235 223 22.64

RRB 20924 109 2.47 11109 37 3.76

Private Sector Banks 9572 110 2.49 1258 12 1.22

Grand Total 340858 4416 100 91867 985 100

42

4.2.7. DRI Advances (Refer Annexure 8.16)

(Rs. in Crores)

Parameter

Outstanding Variation

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Mar. ’14- Sept. ’14

Mar. ’14- Mar. ’15

Mar. ’15- Sept. ’15

Sept. ’15- Sept. ’15

DRI Advances

66.54 56.88 49.43 44.22 -9.66 -17.11 -5.21 -12.66

Against the national goal of 1% of the previous year‟s Gross Bank Credit, only

0.02 % of the total credit could be given under the DRI scheme in the State by

Commercial banks as at September 2015.

43

Banking Group wise Performance under DRI advances as at September 2015

(Rs in lakhs)

BANK

DRI Advances

O/S % to total

State Bank Group 306 6.92

Nationalized Banks 3629 82.07

Private Sector Banks 134 3.03

RRB 353 7.98

Grand Total 4422 100

Public Sector Banks accounts for 82.07% of the total DRI advances.

5. Review of Performance under Special Focus Programmes

5.1. Swarozgar Credit Card Scheme (Refer Annexure 8.23)

The data submitted by the Controlling Offices of banks reveals that Commercial banks in

the State have sanctioned 61 Swarozgar Credit Cards (SCCs) during the second quarter of

the year 2015-16. The limits sanctioned to the tune of Rs. 51 lakhs. Cumulative No. of

Cards issued during the financial year 2015-16 is 92Cards amounting to Rs.110 lakhs limit.

The amount outstanding as at September 2015 is Rs. 34.22 crores in 8158 cards.

44

5.2. Artisans Credit Card Scheme (Refer Annexure 8.23)

Commercial banks in the State have sanctioned 27 Artisans Credit Cards (ACCs) during the

quarter ending September 2015. The total limits sanctioned are to the tune of Rs. 39 lakhs.

Cumulative limit sanctioned during the FY 2015-16 is Rs.43 lakhs in 39 cards. The amount

outstanding as at September 2015 is Rs. 259 lakhs in 284 cards.

5.3. Laghu Udhyami Credit Cards (Refer Annexure 8.23)

Commercial banks in the State have sanctioned 545 Laghu Udhyami Credit Cards (LUCC)

during the second quarter of 2015-16 making available credit limits to the tune of Rs.7.22

Crores to small entrepreneurs of the State. Cumulative sanction during the FY 2015-16 is

Rs.11.12 crores in 624 cards. The amount outstanding as at September 2015 is Rs. 950.29

crores in 110872 cards.

5.4. Performance under Kisan Credit Card Scheme (Refer Annexure 8.22)

The data submitted by the Controlling Offices of banks reveals that 109205 Kisan Credit

Cards with an amount of Rs.3414 crores have been issued during the second quarter of the

current fiscal by the Banking sector in the State. Cumulative disbursement during the

financial year 2015-16 as at September is Rs.5524 Crores in 281392 Cards. As at

September 2015, the outstanding number of loan accounts under KCC is 1923634 with

Rs.12967 crores. 609107 farmers were covered under Personal Accident Insurance Scheme

(PAIS) linked to KCC. Bank wise data is given in the annexure.

5.5. Agri-Clinics and Agri Business Centres (Refer Annexure 8.23)

The outstanding accounts under Agri clinics in the State by Commercial Banks are 31 with a

credit outlay of Rs. 91 lakhs.

As at September 2015, 11 Agri-Business centres loans exist with an outstanding amount of

Rs. 270 lakhs.

5.6. Credit Flow to Minority Communities (Refer Annexures 8.32)

As per RBI directions, credit flow to minorities in specified districts should be reviewed in

all SLBC meetings. At present all the districts in the State of Kerala are notified for

reporting under this head. In Kerala State without giving due share to minorities, credit

expansion is not at all possible. The comparative position with regard to the previous year is

given below.

45

Data on Minority Sector Advances in the State of Kerala

(Rs. in Crores)

Year Total Priority

Sector Advances Minority Sector

Advances Percentage

31.03.2012 85606 46247 54.02

30.06.2012 87751 52877 60.26

30.09.2012 91253 48177 52.79

31.12.2012 92844 51466 55.43

31.03.2013 99318 55248 55.63

30.06.2013 99515 55874 56.15

30.09.2013 101468 61290 60.40

31.12.2013 105160 69998 66.56

31.03.2014 113555 67406 59.35

30.06.2014 115246 63647 55.22

30.09.2014 119436 63858 53.46

31.12.2014 121360 68135 56.14

31.03.2015 128655 72431 56.30

30.06.2015 132733 80372 60.55

30.09.2015 133659 80600 60.30

46

5.7. Performance under Micro-credit (Annexures 8.18 to 8.21)

The banking group-wise data is as follows.

(Rs in. Crores)

Banking Group

SHGs maintaining Savings a/c

Of which No. of SHGs under

No. Amt. Government Sponsored

Exclusive Women

State Bank Group 302235 309 119009 285888

Nationalized Banks 114177 962 8649 100468

RRB 52770 57 0 50132

Private Sector Banks 39964 207 2008 5957

Total - Kerala State 509146 1535 129666 442445

47

There are 3 modes for credit linkage of SHGs under the SHG-Bank linkage programme.

Credit linkage through

1. Financing SHGs directly by banks

2. Financing SHGs directly with the facilitation of NGOs

3. Financing SHGs through the medium of NGOs

The performance of the banking sector in the State under the above 3 modes of linkage is as

follows.

(Rs. in Crores)

Mode of Linkage

SHGs formed

during the Quarter

No of SHG loans Disbursed During

the Quarter

Outstanding Amount under SHG

Finance Beneficiaries

Assisted

A/c Amt A/c Amt

Financing SHGs directly by banks

14583 15517 396.11 125729 2133.4 1084208

Financing SHGs directly with the facilitation of NGOs

3857 4750 136.32 45775 707.1 398242

Financing SHGs through the medium of NGOs

160 293 38.45 2396 141.66 102174

Total No. of SHGs linked 18600 20560 570.88 173900 2982.1 1584624

48

49

5.8. Micro and Small Enterprises (MSE) Advances (Refer Annexures 8.13)

Banking Group

September 2015

Micro Enterprises Small Enterprises Total MSE

No. Amt No. Amt No. Outstanding

Amount

State Bank Group 61859 4076 23562 4281 85421 8357

Nationalized Banks 308998 5873 49852 7163 358850 13036

RRB 149538 1185 1504 135 151042 1320

Private Sector Banks 146131 4750 36566 7890 182697 12640

Grand total 666526 15884 111484 19469 778010 35353

5.9. Compliance on recommendations of the Prime Minister’s Task Force on MSE

advances

The major recommendations of the task force are given below:

Achieve a 20% year-on-year growth in credit to micro and small enterprises to ensure

enhanced credit flow.

The allocation of 60% of the MSE advances to the micro enterprises to be achieved

in stages; viz. 50% in the year 2010-11; 55% in the year 2011-12 & 60% in the year

2013-14; and

Achieve a 10% annual growth in number of micro enterprise accounts.

50

Performance of the State under above parameters is as follows:

Sl. No.

Parameter Sep-14 Sep-15 Increase %

Increase Target

1 No of Loan accounts under

Micro Enterprise 632426 666526 34100 5 10%

2 Credit under Micro and Small

Enterprise (Rs.in Crores) 33291 35353 2062 6 20%

3 Credit under Micro Enterprise

(Rs.in Crores) 14771 15884 1113 8 xxxx

4 Share of Micro Enterprise to

total MSE Credit (%) 44 45 1 xxxx 60%

6. Review of Performance of the Banking Sector

6.1. Banking Statistics as at September 2015 (Refer Annexure 8.9)

(Rs. in crores)

The detailed banking statistics for the State as at September 2015 is furnished in the

Annexure. A comparative analysis of the data over the previous fiscals is presented below.

6.2. Branch Network

As at the end of September 2015, the total number of branches of Commercial Banks in the

State was 6040.

The population group wise breakup of the branch network is presented below.

Banking Group Number of Branches Percentage distribution

Rural S. Urban Urban Total Rural S. Urban Urban Total

Public Sector Banks 280 2839 921 4040 5 47 15 67

Private Sector Banks 184 1372 444 2000 3 23 7 33

Total 464 4211 1365 6040 8 70 22 100

Parameter

Outstanding Variation

March 2014

Sept. 2014

March 2015

June 2015

Sept. 2015

Mar. ’14- Sep. ’14

Mar.’14-Mar.’15

Mar.’15- Jun.’15

Mar.’15- Sep ’15

Sep ’14-Sep.’15

No. of Branches 5688 5828 5984 6010 6040 140 296 26 56 212

Total Deposits 279655 292709 319890 328763 338902 13054 40235 8873 19012 46193

Domestic Deposits 185772 195244 210287 211414 217283 9472 24515 1127 6996 22039

NR Deposits 93883 97465 109603 117349 121619 3582 15720 7746 12016 24154

Total Advances 192010 204405 218706 218739 222791 12395 26696 33 4085 18386

Investments 10983 4458 15586 13092 15763 -6525 4603 -2494 177 11305

Adv. + Investment. 202993 208863 234292 231831 238554 5870 31299 -2461 4262 29691

C: D Ratio 68.66 69.83 68.37 66.53 65.74 1.17 -0.29 -1.84 -2.63 -4.09

C+I: D Ratio 72.59 71.36 71.18 70.52 70.39 -1.23 -1.41 -0.66 -0.79 -0.97

51

Of the total Commercial banks in the State, Public Sector Banks account for 67 % of the

branch network in the State. Public sector banks are having the highest number of rural

branches (280 branches). Of the total branch network of Commercial banks in the State,

only 8 % is in rural areas whereas Semi-urban areas have 70 % of the bank branches in the

State. Urban branches constitute 22 % of branch network.

6.3. Deposit growth

Sectoral Growth of Deposit over the Years (Rs. in Crores)

Type

March 2009

March 2010

March 2011

March 2012

March 2013

March 2014

Sept. 2014

March 2015

Sept. 2015

Variation

of deposit Mar.’15-

Sept.’15 Sept.’14- Sept.’15

Total Deposits

130350 143404 161562 197557 229148 279655 292709 319890 338902 19012 46193

Domestic Deposits

93331 106518 123872 149103 162958 185772 195244 210287 217283 6996 22039

N R Deposits

37019 36886 37690 48454 66190 93883 97465 109603 121619 12016 24154

% Share of Domestic deposits

71.6 74.28 76.67 75.47 71.11 66.42 66.7 65.74 64.11 -1.63 -2.59

52

A. Banking Group wise Growth in Deposits

(Rs. in crores)

Sl. No.

Banking group

Total Deposits % Share in Total

Deposits (Sept.15)

Variation % Share in

Growth

Sept. 2014

Mar. 2015

Sept. 2015

Mar.’15 - Sept.’15

Sept.’14 -Sept.’15

Mar.’15 - Sept.’15

Sept.’14 -Sept.’15

1 State Bank Group 100426 106004 114218 33.7 8214 13792 43.2 29.86

2 Nationalized Banks 80116 89761 91251 26.93 1490 11135 7.84 24.11

3 RRB 7900 8582 8808 2.6 226 908 1.19 1.97

4 Private Sector Banks 104267 115543 124625 36.77 9082 20358 47.77 44.07

Total 292709 319890 338902 100 19012 46193 100 100

53

54

B. Population GroupWise/Banking Group Wise Distribution of Deposits

Population Group wise Distribution of deposits

(Rs. in Crores)

Banking Group

Total deposits Percentage Distribution Share of Banking Group in

Total Deposits

Rural Semi-Urban

Urban Total Rural Semi-Urban

Urban Total

State Bank Group 3860 66875 43483 114218 3.38 58.55 38.07 100 33.7

Nationalized Banks 2808 49448 38995 91251 3.08 54.19 42.73 100 26.93

RRB 1099 6357 1352 8808 12.48 72.17 15.35 100 2.6

Private Sector Banks 9229 71012 44384 124625 7.41 56.98 35.61 100 36.77

Total 16996 193692 128214 338902 5.02 57.15 37.83 100 100

6.4. NR Deposits (Refer Annexure 8.9)

Population Group wise/Banking Group wise Distribution of NR Deposits

(Rs. in crores)

Banking Group

N R Deposits Percentage Distribution Share of Banking Group in Total NR Deposits

Rural Semi-Urban

Urban Total Rural Semi-Urban

Urban Total

State Bank Group

1328 28686 15362 45376 2.93 63.22 33.85 100 37.31

Nationalized Banks

806 16035 8217 25058 3.22 63.99 32.79 100 20.6

RRB 56 318 26 400 14 79.5 6.5 100 0.33

Private Sector Banks

2205 33311 15269 50785 4.34 65.59 30.07 100 41.76

Total 4395 78350 38874 121619 3.61 64.42 31.96 100 100

6.5. Domestic Deposits

Share of Domestic Deposits in Total Deposits (%)

March.

2014

Sept.

2014

March.

2015

Sept.

2015

66.42 66.7 65.73 64.11

As at September 2015, domestic deposits accounted for 64.11% of the total deposits.

55

6.6. Credit Expansion (Refer Annexure 8.9)

Growth in Advances of the Banking sector in the State

(Rs. in crores)

Parameter

Total Advances Outstanding over the Years

Mar.2011 Mar. 2012

Mar. 2013

Mar. 2014

Sept. 2014

Mar. 2015

Sept. 2015

Total Advances 121980 149293 175087 192010 204405 218706 222791

% Growth over the previous fiscal

25.77 22.39 17.28 9.67 12.83 13.9 1.87

Share of Banking Groups in Total Advances of the State

(Rs. in crores)

Banking Group

Total Advances Percentage Distribution Share (%) in Total

Advances Rural Semi-Urban

Urban Total Rural Semi-Urban

Urban Total

State Bank Group 3820 31119 26389 61328 6.23 50.74 43.03 100 27.53

Nationalized Banks 2454 36279 37575 76308 3.22 47.54 49.24 100 34.25

RRB 1557 8660 767 10984 14.18 78.84 6.98 100 4.93

Private Sector Banks

2212 32619 39340 74171 2.98 43.98 53.04 100 33.29

Total 10043 108677 104071 222791 4.51 48.78 46.71 100 100

56

6.7. Credit-Deposit Ratio (C D Ratio) (Refer Annexure 8.10)

The Credit-Deposit ratio of the Commercial Banking sector of the State has decreased by

0.79 % during the quarter to reach 65.74% as at September 2015.

Banking Group wise C D ratio as at September 2015

Banking Group

C D Ratio - Percentage Distribution

Rural Semi-Urban

Urban Total

State Bank Group 98.96 46.53 60.69 53.69

Nationalized Banks 87.41 73.37 96.36 83.62

RRB 141.6 136.23 56.74 124.70

Private Sector Banks 23.97 45.93 88.63 59.52

Total 59.09 56.11 81.17 65.74

57

CD ratio in Rural area is highest for RRB (141.6%), followed by State Bank Group

(98.96%)

RRB (136.23%) has the highest CD ratio in Semi - urban area, followed by is

Nationalized Bank (73.37%)

In Urban areas Nationalized Banks (96.36%) are the toppers followed by Private

Sector Banks (88.63%)

Reporting Quarter Deposits

(Rs. in crores) Advances

(Rs. in crores) CD Ratio

March 2009 130350 82818 63.54

March 2010 143404 96987 67.63

March 2011 161562 121981 75.50

March 2012 197557 149293 75.57

June 2012 209490 151999 72.56

September 2012 213518 158836 74.39

December 2012 220489 167333 75.89

March 2013 229148 175087 76.41

June 2013 239214 174331 72.88

September 2013 252338 181166 71.80

December 2013 267133 183583 68.72

March 2014 279655 192010 68.66

June 2014 283928 192561 67.82

September 2014 292709 204405 69.83

December 2014 302882 201757 66.61

March 2015 319890 225303 68.37

June 2015 328763 218739 66.53

September 2015 338902 222791 65.74

58

6.8. NPA Position of Commercial Banks (Refer Annexure 8.28 & 8.40)

jhn

59

7. ANY OTHER MATTER WITH THE PERMISSION OF CHAIR