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Progress made in implementation of the major action points emerged in the 122nd SLBC Meeting held on 22nd August 2013

SL No. Action Points Status report

1

Banks are to make concerted efforts to raise CD ratio of the State at the level of 70% at the end of March 2014

At the end of September 2013, the CD ratio of the State has reached 66% thus registering an y-o-y increase of 3% and an increase of 1% over March 2013. Based on the past trend, we can expect that the CD ratio will improve further during the next two quarters.

One of the action points in the 121st special SLBC Meeting was increase in CD ratio of 10 identified districts by 5% within March 2013 over their respective position in September 2012. In line with this action point, the comparative position of CD ratio of these 10 identified districts as on Sep 2012 and March 2013 is given below.

District

Sep.2012

Mar.2013

Burdwan

31

38

Bankura

31

36

Birbhum

35

39

Hooghly

20

25

W.Medin.

40

45

Murshid.

36

38

Nadia

27

35

Purulia

22

41

24-Pgs.(N)

20

24

24-Pgs.(S)

41

46

In the 122nd SLBC meeting, Dr.Amit Mitra, Hon'ble Finance Minister of the State pointed out that 9 districts of the State are still having CD ratio below 40% and desired each of these districts to increase CD ratio by 5% as at March ,2014 over the level of June,2013.

A comparative position of the CD ratio of these 9 districts is as under:

District

June2013

Sep.2013

Variation

Burdw

36

37

+1

Bankura

34

35

+1

Birbhum

39

40

+1

Hooghly

25

26

+1

W.Medin

37

40

+3

Murshid

36

37

+1

Nadia

33

34

+1

24-Ps(N)

25

26

+1

Jalpaiguri

31

37

+6

Out of 9 districts ,CD ratio of Jalpaiguri and West Medinipur district has increased by 6% and 3% respectively over their June 2013 position and all of remaining 7 districts have shown growth in CD ratio by 1% over that of June 2013. It is expected that CD ratio will improve further in the remaining 2 quarters in all these 9 districts.

2

With a view to covering all eligible farmers of the State the target of issuance of KCC for the year 2013-14 would be 12 Lakh(NO). SLBC would revise the Bank wise target accordingly. The average credit per KCC to be raised to Rs.70000/- from present level of Rs. 57000/-

Revised Bank wise distribution of targets against issuance of KCC was circulated from SLBC desk amongst member Banks & LDMs through circular No. LBD/SLBC/Target /2399/2013 dated 23rd August 2013. Though Banks could issue 2.17 lac fresh KCCs during the half year ended September 2013, from data collected up to 15-11-2013 ,it is revealed that the position of issuing fresh KCCs reached 5.99 lakh with average ticket size of Rs.58000/- per KCC. As per previous trend, performance is likely to improve significantly during the last two quarters as Rabi crops are cultivated during the period and we are hopeful to achieve the target of issuing 12 lac KCCs. It would be helpful for the Banks if the District Authorities can identify all eligible farmers not covered by KCC and submit the list to the Banks/LDMs in line with the decision taken in the meeting of Hon'ble Chief Minister on 21st December 2012.

3

Short term credit to fish farmers up to Rs.50000/- would be covered through KCC. The Banks are to instruct the branches accordingly.

The SLBC has already communicated through its letter no.LBD/SLBC (WB)/2450 dated 13th September 2013 this decision to member Banks for issuing instruction and guidelines to the branches accordingly.

4

The target of MSE credit under ACP 2013-14 to be upwardly modified to the extent of 20% growth on previous year's target (Rs.13500 crore) that stands at Rs.16200 crore. The SLBC will revise bank wise distribution of targets immediately.

The Bank-wise distribution of targets against MSE was revised by SLBC accordingly and communicated to member Banks and LDMs through circular No LBD/SLBC (WB)/Target/2398/2013 dated 23rd August 2013.The Banks were requested to keep constant monitoring for attainment of the targets. Up to September 2013, Banks have disbursed Rs.8860 crore under MSE sector which is 55% of the target. The growth in credit flow on Y-O-Y basis is 104.57%.

5

The Banks will attach sincere efforts for achieving the target of savings and credit linkage of 1.5 lakh SHGs during 2013-14. All Banks will adopt the practice of financing to SHGs based on the micro credit plan and with minimum Rs.1.00 lakh dose at the time of first credit linkage.

33299 fresh SHGs have been credit linked with a sum of Rs.20769.18 lac by the Banks during the half year ended September 2013. With a view to achieving the target of credit linkage both in number and average quantum of loan per SHG, following decisions have been taken in the Sub-committee meeting of SHG held on 7th November 2013.
i) One Sub committee of SHG will be formed at the DCC level  and meeting of the Sub committee be conducted immediately.
ii) Credit camps will be organized.
iii) The SHGs that were qualified last year should be immediately credit linked with initial amount of credit limit of minimum Rs.1.00 lac.
Accordingly, the above action points have been communicated to all member Banks.

6

One big conclave on MSME will be organized in the month of September 2013 by the Department of MSME & Textiles, GoWB where all the Bankers and other stake holders would participate.

One MSME Business Conclave "SYNERGY MSME- 2013" was organized from 16.09.2013 to 21.09.2013 at Kolkata by the Department of Micro & Small Scale Enterprises & Textiles, Government of West Bengal. The Conclave was inaugurated by Hon'ble Chief Minister of West Bengal. United Bank of India, SLBC convener of West Bengal and other major Banks of the State participated actively in the Conclave and organized credit delivery camps where sanction letters were distributed to entrepreneurs availing of credit facilities from Kolkata based branches. United Bank of India offered sanction of loan to 1030 cases involving an amount of Rs. 162.66 crore.

7

Issues related to issuance of KCC, SHG credit linkage would be discussed in the relevant Sub-committee meetings of SLBC to be held in the month of September 2013.

Meetings of the Sub-committee of SLBC on Agriculture & SHG were held on 7th November 2013 where some important decisions were taken to reach the credit flow target to Agriculture and SHGs. While the proceedings of both the meetings are annexed to the Agenda notes, the same has been sent to all member Banks and LDMs.

8

The member Banks would submit the the road map for opening of Brick & Mortar branches in unbanked Gram Panchayats Head Quarter villages to SLBC. In the Agenda book of 122nd SLBC meeting the summary of district wise & distance wise unbanked GPs allotted to Banks was annexed. By way of opening of B& M branches in these locations over a period of time ,more than 60% of 1400 villages that need to be covered as per directive of RBI would be achieved.

SLBC has not yet received any action plan/road map from any of the member Banks, except for Dena Bank and Canara Bank in respect of opening of B&M branches in the unbanked GPs allotted to them. However, United Bank of India has recently opened 50 branches in 17 districts of the State, out of which 34 branches cover the unbanked GPs.
Dena Bank and Canara Bank have, on the other hand, approached Govt. of West Bengal for premises support for opening 7 & 58 Branches respectively in unbanked GPs.

9.

Banks will issue instruction to the branches for opening of the accounts of all girl students enrolled in classes VIII to XII on war footing for successful launching of "Kanyashree Prakalpa". A target date for completing the account opening has been fixed at 10th September 2013.

SLBC has promptly communicated the member Banks the information about this flagship scheme of Govt. of West Bengal and requested them to instruct branches to open the accounts of the beneficiaries on war footing to help launching of the scheme successfully. It is laudable to note that all bank branches of the State have put in their best efforts for opening of accounts of the eligible girl students. All banks have in the meantime, collectively opened nearly 2 lac accounts under this scheme.

10

Member Banks which are yet to submit the district wise list of pending cases under SARFAESI Act to SLBC are requested to furnish the same without further delay for onward submission to Finance Secretary, GoWB.

Only a few member Banks viz Allahabad Bank, UBI, Andhra Bank, Indian Bank, Punjab & Sind Bank & PBGB had submitted the lists and those have been forwarded to Finance Secretary for his kind intervention. The remaining Banks have once again been requested to submit the list to SLBC both in soft copy and hard copy without further delay for onward submission of the same to Finance Secretary for necessary action.

11

The FLCs would conduct more outdoor Financial Literacy camps with focus on financially excluded people. FLCs would also submit the quarterly statement as per specific format to SLBC positively within 5th of subsequent month after the end of a quarter.

All FLCs are not submitting the quarterly statement to SLBC regularly. Member Banks have again been requested to instruct their FLCs to submit the statement to SLBC without fail. However, from the reports received from some FLCs, it is revealed that 223  No. of outdoor activities were carried out by the FLCs during the half year ended September 2013 where 6543 No. of persons availed the benefit.

 

Status of Implementation against major Action Points emerged in the 121st SLBC Meeting held on 26th March 2013.

SL No. Action Points Status report

1

Banks to make efforts to achieve CD ratio of 65% for the State of West Bengal by March 2013 and 68% by March 2014.

The CD ratio of the State has improved from 63% as on Sept 2012
 to 65% at the end of March, 2013. In order to achieve the CD ratio
 of 68% by March 2014, SLBC has increased the Annual Credit Plan
(ACP) target  by 30.13%  to Rs.68322 crore for the year 2013-14
from Rs.52,500 crore for the year 2012-13.
Assuming that deposit growth of 15.95% and advance growth of
17.38% for the year 2012-13 will be retained, then incremental
 credit of Rs.10230 crore in the year 2013-14 is required to lead the
CD ratio to 68%. Increased target in the ACP is commensurate to
 bridge the gap.

2

The Lead Banks ,other major banks in the district, NABARD as also the DMs concerned to coordinate  and explore possibilities of credit expansion so that the CD ratio of 10 identified districts can be increased by 5% over their September 30,2012 position.

At the end of March 2013, combined CD ratio  of 10 identified districts, has increased from 28% as on Sept 2012 to 33%, registering a growth of 5%.CD ratio of the 7 districts viz Burdwan,Bankura,Hooghly,Paschim Medinipur, Nadia,Purulia and South 24- Parganas. has achieved the increase of 5% or more.
CD ratio of Birbhum & North 24 Pargana district has increased by 4% as on March 2013 over that of September,2012. CD ratio of Murshidabad district has grown by 2% during the period. (Report on district wise CD ratio  as on 31.03.2013 annexed.)

3

The SLBC would arrange submission of the compiled report on CD ratio of the State in general and in specific the CD ratio of 10 identified districts, disbursement of loans to KCC and credit linkage status to SHGs as on 31st March 2013 to RBI within 6th April 2013 and Hon’ble Finance Minister of the State positively by 15th of April,2013.

Provisional compiled report on all the parameters was sent to RBI and Principal Secretary ,Finance, GoWB on stipulated dates. The final report on CD ratio of all the districts of the State as on 31st March 2013 has been  sent to RBI and Finance Department on 30.04.2013.
As against a target of 10,00,000, all Banks in the state disbursed KCC to 10,00,230 farmers involving an amount of Rs.5739.27 crore. Average KCC per borrower stands at Rs.57,380/- as against an average of Rs.38,220/- as on 31.03.2012.
All Banks in the state, Savings linked to 126398 groups    (including groups under SGSY) for the year 2012-13.
All Banks in the State credit linked to 108924 groups including 64436 groups under SGSY for the year 2012-13.

4

All matured SHGs are to be credit linked to reach the target of 1.50 lac SHG credit linkages during the year 2012-13. The average loan per SHG is to be increased substantially which was around Rs.48000/- at the end of December 2012.

108924 numbers of matured SHGs have been credit linked by the Banks up to 31st March ,2013 with involvement of amount of Rs. 674.41 crore.
However, average credit involvement per SHG has improved from 0.46 lac as on 31.03.2012 to Rs.0.51 lac as on 31.03.2013. Credit involvement per SHG newly covered during 2012-13 has been Rs.0.62 lac.

5

As per directive of RBI , Brick and mortar branches need to be opened in 5% of the identified villages having population less than 2000 i.e 1407 villages out of 28140 identified villages. The member banks would identify the locations from the list of villages alloted to them and submit the same with road map to SLBC immediately for onward reporting to RBI.

The Lead Bank Division of SLBC has worked out the Bank wise and District wise allocation of 28140 villages and mailed it to RBI and the member banks. The member Banks are  required to prepare the roadmap for providing banking outlets (BCA and brick & Mortar branches in 5% of allotted villages) within 3 years. We are yet to receive the roadmap from all the member Banks.

6

The Banks would also ensure opening of Brick and mortar branch in all the unbanked GPs of the State. The unbanked GPs was alloted to the Banks earlier. The member banks would submit the road map in this respect to cover the GPs where no brick and mortar has yet been opened.

T.M.Bhasin Committee identified 938 unbanked Panchayats in the State. Meanwhile many of the unbanked Gram Panchayats were covered by the Bank Branch/BC model. However, fresh information gathered from the Lead District Managers, it is observed that now, there is no branch in 892 Gram Panchayats. Information gathered revealed the following status of unbanked GP at present.
(i)No. of unbanked GP in 18 districts in West Bengal:889.
(ii) No. of unbanked GPs having bank branch within a radius of 5 KM : 451
(iii) No.unbanked GP having bank branch at a distance of >5 KM to below 10 KM: 300
(iv) No. of unbanked GP having bank branch at a distance of 10 KM or more :138.
A meeting was convened by the Convener, SLBC with major Banks in the State on 27.06.2013 and discussed the issues relating to opening of brick & mortar branch at the unbanked GPs.
It has been decided in the meeting that Banks will open brick & mortar branches in phases. In the first phase 138 unbanked GPs where no brick and mortar branch is there within 10 KM should be considered for opening during the year, subject to approval by the SLBC.
The list of such 138 GPs are enclosed, with the name of the Banks to whom the village has been allotted as service area.

7

One Sub-Commiittee meeting of SLBC on Agriculture is to be organized shortly to discuss the issue of verification of land records and more credit flow to the units for growing fruits ,vegetables etc under Horticulture segment.

The meeting of the Sub-committee of SLBC on Agriculture was held on 19th April 2013. No fruitful decision could be arrived at regarding the issue of verification of land records. The proceedings of the meeting has also been circulated amongst all members of SLBC.
(Copy enclosed  in the Agenda notes of 122 nd  SLBC meeting)

8

Food Processing and Horticulture Deptt., GoWB would hold a meeting with the Bankers, NABARD, RBI at a suitable time (if possible at the Chamber of Hon’ble Finance Minister) to discuss strategies to increase lending to Food Processing Units and  Horticulture sector.

Date and venue of such meeting has yet not been fixed. However, through letter no.LBD /NARBIG /meeting /2097 /2197/2013 dated 26.06.2013,SLBC has requested the Director, Horticulture & Food Processing Deptt. GoWB to arrange a meeting on the aforesaid Agenda.

9.

Member Banks would submit the district wise list of pending cases under SERFAESI Act to SLBC for onward submission to Finance Secretary ,GoWB.

The district wise list of pending applications for permission of District Magistrates for taking possession of the charged assets received from some major Banks like United Bank of India ,  Allahabad Bank, Andhra Bank, Indian Bank, Punjab & Sind Bank & Paschim Banga Gramin Bank.The same have already  been submitted to the Principal Secretary, Finance Department, GoWB, for his kind intervention. All other Banks have also been reminded to furnish the list of such pending cases to the convener, SLBC.

10

The Banks would initiate action to cover all the identified villages under FIP with population 1600 to less than 2000 through opening of banking outlets within March,2013.

Upto March 2013, 1678 villages, out of 2440 villages having population of < 2000 have been covered with banking outlets mostly by BC model. All the Banks are requested to cover the remaining villages by June 2013.

11

The LDMs of six identified districts for DBT
(North 24-Parganas, South 24-Parganas, Bankura, Purulia ,Burdwan & Coochbehar) would identify at least one  Block in the district in consultation with the District Magistrates and District Coordinators of the Banks where basic savings accounts are to be opened in the names of all eligible adult members of each family.

In all the 6 districts, one Block  has been selected for the  purpose which is furnished below.

District Block No of adult members Account opened % of coverage

Bankura

Simlapal

76467

56167

74.45

24 Pargana
(South)

Canning-I

303242

230464

76

Purulia

Balarampur

68538

50821

74

Coochbehar

Coochbehar-I

140138

115965

82.75

24 Pargana
(North)

Bashirhat-II

100688

91177

90.55

Burdwan

Katwa-I

152101

114075

74.99

 Howrah & Coochbehar district has been identified by the Govt. of India for extending Direct Benefit Scheme in West Bengal in 2nd phase, which are under the lead responsibility of UCo Bank and Central Bank of India respectively. Sub-service area mapping of both the district has been completed.
In Howrah district 156 Gram Panchayats have been converted to 432 Sub-Service area and in Coochbehar District 128 Gram Panchayats have been converted to 445 Sub-service areas. Bank wise mapping of all the Sub-service areas have been completed.

Progress of DBT in Coochbehar District :

No. of scheme

Total no. of beneficiary

Beneficiary
Details received by LDM

Account opened

Debit Card issued

Aadhar no. seeded

12

138316

25237

14507

nil

1339

Progress of DBT in Howrah District

No. of scheme

Total no. of beneficiary

Beneficiary
Details received by LDM

Account opened

Debit Card issued

Aadhar no. seeded

7

Not received

23654

23654

3018

425

 

Progress made during the period 01.4.2012 to 31.12.2012 in implementation of the major action points emerged in the 120th Meeting held on 6th December, 2012.

Sl No Action Points Status Report

1.

Banks to make efforts to achieve CD ratio of 65% for the state of West Bengal by March 2013 and 68% by March 2014. Banks to focus particularly on the lagging districts, viz. Burdwan, Birbhum, Bankura, Hooghly, Murshidabad, Nadia, North 24 Parganas,  South 24 Parganas, Paschim Medinipur and Purulia.

The CD ratio of the State has fractionally improved from 62.98% as on Sept 2012 to 63.17% at the end of December, 2012. It is expected that the CD ratio will increase to 65% at the end of March, 2013 as envisaged. In seven out of ten districts identified for focused improvement in CD ratio, the CD ratios have improved. In two districts position is static and in only one district the position has deteriorated compared to the position as on Sept, 2012.

2.

The Lead Banks, other major banks in the district, NABARD as also the District Magistrates concerned to co-ordinate and explore possibilities of credit expansion so that CD ratios in the identified districts can be increased by 5% over their September 30, 2012 position. The target date for achieving the increased CD ratio will be March 2013.

 Apart from the meetings convened by Hon’ble Chief Minister on 21.12.2012 and Chief Secretary on 19.2.2013, where DMs participated, Special meetings of SLBC member banks and LDMs were organized on 26th December, 2012 and 28th January, 2013 to apprise them of the directives and guidelines given by RBI and State Govt. The CD ratio has improved in Hooghly district by 4%, in Burdwan and Bankura districts by 2%, and in Murshidabad, Birbhum, 24 Parganas (N) and Purulia districts by 1% over the level it was at the end of Sept, 2012. The DMs of Howrah and Bankura district has provided list of (10+5) entrepreneurs under MSME sector for extension of credit by the banks.The ten proposals submitted at different branches of Howrah district are still at a primary stage due to non submission requisite papers relating to KYC compliance, conversion of land etc. The concerned has assured to look into the issue after the Panchayat election. In Bankura district one proposal is under active consideration of Central Bank of India. For the remaining 4 proposals supply of electricity has to be ensured. The concerned DM is looking into the matter. 

3.

State Government to ensure that the loan recovery climate, infrastructure etc. in the State improves as this will facilitate loan disbursement by the banks. The DMs to take active interest in the matter.

The Govt. Authorities at the State level and district level as well have assured that the issue will be looked into after the Panchayat election is over.    

4.

The progress of implementation of the Action plan emanating from the meeting held on December 21, 2012 convened by the Hon’ble Chief Minister of West Bengal with the DMs and senior bank officials, would be monitored in the DCC and SLBC meetings so as to achieve the targeted CD ratio as indicated in Sl. No. (1) above.

Progress on action plan to be implemented by the line Dept. Officers / DMs is being reviewed by the appropriate authority of the concerned Dept. of the State Govt. The Lead District Managers are in close contact with the district authorities and banks to facilitate implementation of action plans emerging in the said meeting. Special BLBC meetings have been held in all the Blocks to make them aware of the action plan to be implemented at their level. However, the banks are yet to receive complete list of beneficiaries under various DBT schemes, list of farmers eligible to get KCC, list of SHGs for credit linkage etc.

5.

There are some differences in the interpretation of SARFAESI Act and Ad-Valorem taxes between the State Government and banks which is leading to poor recovery and acting as a disincentive for banks to enhance credit disbursement. The matter is to be discussed and sorted out in the SLBC meetings.

As per provisions of SARFAESI Act, the District Collectors are not required to hold any hearing with the Debtors or enter into an adjudication process which if practiced would delay the entire  process. Disposal of Certificate Cases are also not picking up pace thereby indirectly affecting recovery of loans. The recovery of loans under Priority Sector has declined to 54% at the end of December, 2012 from 62% registered at the end of Dec, 2011. Recovery performance under schematic lending is also deteriorating. The existing practice of upfront payment of stamp duty at the time of filing suit may be discontinued and system of proportionate realization of the same from the amount actually realized may be introduced.

 

 

 

6

There is a complaint regarding delay in issuance of GCCs. Banks branches can be given targets and be requested to create teams focused on expediting issue of GCCs.

All the Rural and Semi Urban branches have been given target to issue at least 100 GCCs within March 2013. During the current year up to December, 2012, banks have issued 115536 GCCs compared to 72100 GCCs issued during the corresponding period last year. Substantial improvement is expected during the current quarter which would leave impact on performance of the year as well as the member banks and LDMs have been sensitized on the issue in the special meeting of SLBC members held on 26.12.2012 and 28.1.2012 .

7

EBT to be implemented on a pilot basis in six districts identified by State Government viz. Purulia, Coochbehar, South 24 Parganas, North 24 Parganas, Bankura and Burdwan for transfer of all kinds of Government payments, wages, pensions, etc.

 Although no district of West Bengal has been identified for implementation of DBT, as per decision taken in the special SLBC meeting on 6th December, 2012, DBT will be implemented in the State wef 1st April, 2013. The LDMs are in touch with the District Magistrates to procure the list of beneficiaries under various schemes of DBT. Murshidabad district has submitted partial list of beneficiaries in respect of two schemes and complete list of beneficiaries in respect of three schemes.

8

Basnks to open Basic Savings Bank Depoisit Account or Zero Balance account in respect of all the beneficiaries of the six districts, as per the duly authenticated and validated list of beneficiaries provided to them by the State Government. Adoption of camp mode approach can be considered for the purpose. The action plan to be ready for being rolled out in January 2013.

 Banks are yet to receive the list of beneficiaries under DBT schemes of the identified six districts, viz. 24 Parganas (S), 24 Parganas (N), Bankura, Purulia, Burdwan and Coochbehar. The LDMs are pursuing the issue with the concerned District Magistrates. In the meanwhile all the LDMs of the State have been advised to monitor the basic task of opening at least one account per household to be completed in camp mode under the assistance of State Govt. officials. Upon receipt of beneficiary list, additional accounts would be opened in the name of the beneficiaries if not opened already.

9

As against a target of 1.5 lakh SHG credit linkages in the State for 2012-13 only 30,227 SHGs were linked as at the end of September 2012 (i.e. 20.18%  of target). Banks to complete the credit linkage of the remaining SHGs by the end  March 2013.

54025 numbers of matured SHGs have been credit linked by the banks up to Dec, 2012. The figure reveals that 23798 SHGs have been credit linked during the quarter compared to 30227 SHGs credit linked during last two quarters; thus the pace of credit linkage has gained momentum. The member banks have been requested to credit link the remaining groups within March 2013 as SGSY scheme will cease to be in operation at the end of this year. Better results are expected at the end of March 2013.

10

Banks to also make efforts to repeat credit to those SHGs which have matured and demonstrated their ability of effective functioning through repaying their earlier dues.

Repeat Credits are allowed to the SHGs in normal course. However, the District Authorities of State Govt. is yet to provide the list of SHGs awaiting credit linkage.

Progress made by all banks during the period 01.4.2012 to 30.9.2012 in implementation of the major action points emerged in the 119th SLBC Meeting held on 30th May, 2012.

Sl No

Action Points

Status Report

1.

The Banks will concentrate and take suitable actions for more credit flow to the rural areas so that CD ratio of rural area is increased substantially.

For increasing rural CD ratio, the main focus has been given on implementation of revised KCC scheme and credit linkage of matured SHGs. This is going to give good result by the end of the current year. The rural CD ratio has improved to 43% at the end of Sept 2012 from 42% at the end of June 2012. The Y-o-Y growth of  Rural CD ratio is also 1%.  United Bank of India has engaged a study team to ascertain the reasons of low CD ratio in the rural areas of six districts of West Bengal.

2.

The CD ratio of the State is to be improved to 65% and beyond that through identification   of causal factors and adoption of necessary corrective measures.

At the end of September 2012, the CD ratio of the State has improved to 63% from 62% at the end of   Sept 2011. Based on the past trend, we can expect that the CD ratio will improve further during the next two quarters and exceed 65% by the end of the year. The above study team will also examine the reasons of low CD ratio in West Bengal in six districts.

3.

The Banks will increase the pace of conversion of BCA CSPs into Ultra Small Branches. In respect of USBs in 5000+ villages the banks will engage full time officer for all the working days.

Out of 7170 identified 2000+ population villages where BCAs have been engaged, USBs have been set up in 1278 villages. The process will speed up with the recruitment of fresh manpower. As regards setting up of USBs in 5000+ population villages (1440) with full time officer, Cash Safe and Passbook Printer. Banks are examining the issue of additional Manpower requirement, Maker – Checker system and Cash Safe operation that would be required to run the USBs in these villages.   

4.

The Banks will initiate action to cover the villages under FIP with population 1600 to less than 2000 and send monthly progress report to SLBC for onward submission to Ministry of Finance.

United Bank of India as leader bank of West Bengal – I & II cluster, floated RFP and selected FINO and Srei Sahaj e-village as common BC for implementing FIP in the villages having population 1600 to < 2000 during the current year. Hooghly and Nadia district has been identified for piloting and after successful completion of the same; the common BCs will start implementing FIP in the respective clusters. Meanwhile the banks have been requested to continue implementing FIP through the existing BCs till successful piloting by the common BCs are over. In any case these villages would be covered within the current year. Arrangement letters sent to both the BCs are yet to be responded by them.

5.

The Banks and Agriculture Department of the State Government will take all possible steps to bring more and more eligible uncovered farmers  under the new KCC scheme.

Despite drought like situation in the June quarter and early part of September quarter, the banks could issue 2.49 lac fresh KCCs during the half year against annual target of 10.00 lac. As per previous trend performance will improve during the last two quarters as Rabi crops are cultivated during the period. The banks have started issuing KCCs under revised scheme since August 2012. By the end of the year revised KCCs will be issued to all eligible farmers. The study team mentioned in item 1 & 2 will also ascertain the extent of coverage with KCCs and other issues relating to its issuance.

6

Reviewing “Scale of Finance” will be discussed at the DCC level on quarterly /half yearly basis.

All the LDMs have been advised to discuss the issue in DCC / DLTFC meetings and explore possibility of revising Scale of Finance at half-yearly interval.

7

One special meeting is to be organized at the Chamber of the Hon’ble Finance Minister, GoWB to review the performance of the RRBs particularly in presence of RBI, NABARD and SLBC.

The meeting is yet to be arranged.

8

1.50 lac SHGs are to be credit linked during the year 2012-13. The average loan per SHG is  to be increased which is now around Rs.46000/=

30227 fresh SHGs have been credit linked with a sum of Rs 13938.87 lac by the banks during the half-year ended September 2012. Position will improve during the coming quarters. Bankers have been requested to proactively extend credit coverage to all matured SHGs already savings linked.

9

The banks will open FLCs at the offices of Lead District Managers at their respective lead districts within 15 th October ,2012.

FLCs have since been opened in all the 18 LDM offices in addition to the 9 FLCCs already in place.

10

The Banks will submit the list of Pending cases under SERFAESI Act to SLBC immediately for onward submission of the same to Finance Secretary, GoWB.

Some of the banks are yet to submit the list of such pending cases needed for compilation of State wise position and onward submission to Principal Secretary, Finance Dept., Govt. of West Bengal.

11

The banks may take over some schools for up gradation/modernization ( particularly girls’ schools in rural areas) out of their CSR programme. The State Government will publicize and announce reward against performing banks on this Philanthropic issue

 

All member banks are requested to take up the issue at the appropriate level and take decisions in the matter.

12

Well organized campaigning is to be undertaken to create awareness  amongst both loanee and non-loanee farmers regarding crop insurance.

The campaign is being coordinated by the Agriculture Insurance Corporation with the Agriculture Dept. and LDMs and DDMs.

13

The entire process of sponsoring, sanction and disbursement of loans under different Government sponsored schemes for the year 2012-13 must be completed by the end of January 2013.

The member banks have initiated steps to dispose of all eligible proposals within January, 2013. 

Progress made by all banks in west Bengal during the period 01.4.2011 to 31. 03.2012 in implementation of the major action points emerged in the 116th SLBC Meeting held on 8th December 2011.

Sl No

Action Points

Status Report

1.

The target of 7486 villages under FIP to be covered by March 31, 2012. The banks should strive to achieve meaningful financial inclusion. State Govt. to provide adequate security to frontline managers in districts with law and order problems to facilitate FI awareness drives in these sensitive districts.

All the 7486 villages identified under FIP have been covered by opening B & M Branches in 185 villages, BC model in 7197 villages and 104 villages through Mobile Van. Transaction has started picking up in 3046524 A/cs already opened under FIP. However, we have no report of any law and order problem coming in the way of implementation of the programme.

2.

Banks to achieve Credit Deposit Ratio of 65% by the end of current fiscal. While it is acknowledged that enhancement of CD ratio will require big ticket investment in the State, attempts to be made to progressively increase CD ratio over the coming years by enhancing the ACP.

At the end of March 2012, the CD ratio has improved to 64% from 62% at the end of June 2011. Credit of take has not been to the level expected by the bankers may be due to high interest rate etc. However, the bankers have been requested to market / promote big ticket advances both under Priority and Non Priority sector without which the desired CD ratio cannot be achieved. 

3.

The banks to step up lending through KCC and under Govt. sponsored schemes. Separate KCC targets to be set internally by each bank would have to be fully realized.

As against target of 10.00 lac ,724779 KCCs have been issued during the year 2011-12 compared to 549118 issued last year. Six banks have achieved more than 100% of their targets while achievement of 1 bank was close to 100%. The overall achievement of RRBs are commendable as they have achieved 158% of their target as against 89% achieved by Public Sector Commercial banks and 25% achieved by Cooperative sector. Bankers were requested to dispose of all pending proposals immediately. The under performing banks have to improve their performance during the current year..

4.

One lakh SHGs to be credit linked by end of March 2012. SHG Credit Linkage and the ongoing KCC drive should aim to ensure that the CD ratio reaches 65%. To obviate the problem of coordination between banks and the State Govt for grading of SHGs, additional Staff from the controlling offices of banks to be deployed as task forces with specific focuses on this area.

93425 SHGs have been credit linked by the banks during the year 2011-12 which marginally fell short of the Annual target. All the banks were requested to provide additional manpower specifically for the above purpose. For streamlining the gradation process, availability of representatives both from banks and Govt. Dept has to be ensured.

5.

A study on the current status of GCC disbursement should be completed by December 31, 2011 for four districts identified viz. Murshidabad (United Bank), Howrah (UCO Bank), 24 Parganas (N) (Allahabad Bank) and Malda (State Bank of India)

The report on the Field Study has been submitted on March 05, 2012. A copy of the report was annexed in the Agenda Note Book of 117th SLBC meeting for discussion. Non availability of Subsidy, relatively lower credit limit and high rate of interest etc are some of the limiting factors responsible for inadequate achievement under the scheme.

6

The matter of bank lending should take into account the cropping patterns specific to distinct crop zones in the State and could be taken up at district level.

In preparing district wise PLP/Credit Plan, district specific cropping pattern is taken into consideration.

7

Bank Managements to ensure that non collateralized loans up to Rs 10.00 lac is provided to the MSME sector

No instance of insistence of collateral security for such loans has been brought to our notice. Instruction on this score has been issued on repeated occasion.

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