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Proceedings of the 114th State Level Bankersí Committee Meeting for the
State of West Bengal held on 30th June 2011 at Kolkata

The 114th Meeting of the State Level Bankers' Committee, West Bengal was held on 30th June 2011 at the Hotel Hindusthan International, Kolkata where performance of the banks during the year 2010-11 was reviewed. The meeting was chaired by Shri Amit Mitra, Hon’ble Finance Minister of the State and graced by Dr K C Chackraborty, Hon’ble Dy Governor of Reserve Bank of India. Amongst the other dignitaries, Shri Bhaskar Sen, CMD, United Bank of India and Chairman, SLBC( WB), Shri J P Dua, CMD, Allahabad Bank, Shri Arun Kaul, CMD, UCO Bank, Shri Salim Gangadharan, Regional Director, RBI Shri NSP Rao, CGM, NABARD, Dr. A.K. Chanda, Additional Chief Secretary, MSSE & T, Govt. of West Bengal, Shri S L Bansal, ED, UBI, Shri D Sarkar and Shri M R Nayak Executive Doirectors of Allahabad Bank, Shri Ajai Kumar and Shri N R Badrinarayanan,Executive Directors of UCO Bank, Shri Suriender Kumar, CGM, SBI were also present. Besides, top executives of BCSBI, State Govt., RBI, NABARD and Banks participated in the meeting.  A list of participants of the meeting is enclosed.

Shri Bhaskar Sen, CMD, UBI and Chairman of SLBC (WB) prior to delivering his welcome address greeted Hon’ble Finance Minister and Hon’ble Dy Governor, RBI with  flower bouquet on behalf of SLBC (WB). Thereafter, Shri Sen apprised the house of the achievements of the banks in the State in the perspective of action points emerged in the 113th SLBC meeting held on 08.3.2011. His briefing inter alia included the following points.

  • The CD ratio of the State improved from 64% as on March 2010 to 65% as on March 2011. The CD ratio of rural area also increased from 42% to 44% during the year.
  • The achievement figures under ACP (2010-11) show that despite 65% hike made in the target, the overall achievement has been 87%. In absolute terms the growth over previous year was 40%.
  • The growth rate of overall Priority sector during 2010-11 has been 43%.
  • In Agriculture sector, the growth rate has been 41% despite incident of draught.
  • Credit linkage to SHGs – 114255 nos. of new SHGs has been credit linked during the year. Average outstanding credit involvement per SHG has increased in the State from Rs 37000.00 as on March 2010 to Rs. 43000 as on March 2011. The Credit: Savings ratio has also increased from 2.45 to 3.06.
  • Performance of the banks in implementing PMEGP during the current year has been commendable alike previous years as more than 11000 cases have been disbursed during the year. Overall performance under Employment Generation Schemes has been 79%.
  • In 10 districts of West Bengal, 46 clusters have been identified for 100% KCC/JLG coverage under the programme “Bringing Green Revolution in Eastern India”.
  • Under Financial Inclusion Plan, as against a target of 2542 outlets, banks have already opened 2990 outlets during the year of which 152 are physical branches.
  • The district wise and bank wise list of unbanked villages having population between 1000 to 2000 has been prepared and submitted to IBA for mapping. 8605 such villages have been identified.
  • 358946 nos. of borrowers belonging to Minority Communities have been financed by the banks involving an amount of Rs 2924.16 crore. The outstanding balance is 14.62 % of the total Priority Sector Credit.
  • RSETIs are now functioning in all the districts of West Bengal. FLCCs have started functioning in eight districts. The other districts will be covered soon.
  • Shri Sen placed the following targets under ACP -2011-12 keeping in mind the budget speech of Hon’ble Finance Minister and as per decision of the Special meeting of SLBC held on 20.4.2011 for approval in the house.
Agriculture - Rs 20300.00 crore - 76% higher than the achievement of last year.
MSE - Rs 9000.00 crore - 24% higher than the achievement of last year.
OPS - Rs 7000.00   crore - 9% higher than the achievements of last year.
Non Prisec - Rs 5700.00 crore - 24% higher than the achievements of last year.
Total ACP - Rs 42000.00 crore - 41% higher than the achievements of last year.

In regard to payment of salary to the State Govt. Employees, Shri Sen appealed to the entire banking community to extend their full support in opening the A/cs and implementation of the scheme.

Shri Sen also reiterated the following issues pending with the State Govt. for decision: 

  • Payment under NREGA - Providing soft copy of the list of beneficiaries to the banks : It was reiterated that  if payment list under NREGA is sent to the banks in soft form, the process of payment to the beneficiaries will be speeded up. No development has taken place in this regard as yet.
  • NPA RECOVERY - Facilitating enforcement of SARFAESI Act, reexamination of the recovery process through PDR Act which has not been effective so long. The system of upfront payment of stamp duty on PDR cases may be reviewed and linked up with actual recovery. Acute manpower shortage in DRTs where large number of cases is pending may also please be addressed.
  • Allocation of land for RSETIs: The State Govt. may please expedite allocation of land to all the 19 RSETIs now functioning in 18 districts.

Thereafter, Sri P K Roy, General Manager & Convener, SLBC, WB started discussion on some of the important Agenda items through Power Point Presentation:

  1. Financial Inclusion Plan – Roadmap and progress: Out of 2417 villages ought to have covered through B C model during 2010 -11; banks have set up 2838 CSPs during the year. 152 branches were opened against targeted 125. Altogether 1376330 accounts have been enrolled in these CSPs.

  2. Technological Preparedness for FIP – Details of technological preparedness of the major banks including SBI, UBI, All. Bank, UCO Bank, CBI, Union Bank, BOI and BGVB implementing FIP in West Bengal were presented in the house with prospects of utilization of Kiosk model and Mobile Van.

  3. Bankwise/District wise allocation of villages having population > 1000 to <2000: Bankwise allocation of 8605 villages was shown.

    Dr K C Chakraborty, DG, RBI opined that it is more important to site the problems, if any, that the bankers are facing in implementing FIP. It is also important to know how many accounts have been enrolled, how many Smart Cards/KCCs/GCCs have been issued; there should be new thinking on what is not happening and reasons thereof.

    Shri Roy, pointed out that the bankers are facing some problems in selecting good CSPs in Purulia and Paschim Medinipur districts on account of disturbed Law and Order situation. However, in other areas bankers are opening/ issuing SB, RD, KCCs through CSPs details of which will be collected henceforth for discussion and analysis. Connectivity is also a problem in some areas.

    Shri A K Das, Director, Institutional Finance and Special Secretary, Finance Deptt, GoWB pointed out that in most of the cases banks have not issued GCCs.

  4. Achievement under ACP 2010-11: Details of achievement noted by the house. Dr Chackraborty advised the bankers to study the movement of outstanding balance segment wise with movement in no. of beneficiaries.

  5. Agency wise achievement of Agril. Loan under ACP: Achievement of commercial Banks, RRBs and Coop Banks are 75%, 47% and 83% respectively against overall achievement of 72%. Dr Chakraborty wanted to know why performance of RRBs is poor compared to other Agencies. Drought was common for all the banks then why performance of RRBs in particular was poor. The sponsor banks should monitor the performance of RRBs.

    Shri Rana Mazumder, Chairman, BGVB stated that they have achieved 52% of their target in Agriculture loan as against 47% achieved by all RRBs. Barring in three districts worst affected by drought, their performance is by and large well. The reason of poor performance in three districts will be discussed in DCC meetings.

    Shri P K Roy informed the house that the achievements of BGVB, PBGB and UBKGB in Agriculture sector have been 52% 43% and 34% respectively. 

    Shri S R Khatik, Chairman, UBKGB stated that poor performance in Darjeeling District has pulled their performance down. They expect to do better in the current year.

  6. Annual Credit Plan for 2011-12: The details of the targets proposed in Special meeting of SLBC dated 20.4.2011 are: Agriculture Rs 20300.00 crore (76% growth), MSE – Rs 9000.00 crore ( 24% growth), OPS –Rs 7000.00 (9% growth) crore and Non Priority Sector Rs. 5700.00 crore(24% growth). Total Rs 42000.00 crore (41% growth) against Rs 29840.00 crore achieved last year.

    Dr  Chakraborty pointed out that 9% growth proposed in Other Priority Sector will not take care of even normal inflation that is to be looked in to.

    Dr A K Chanda, Additional Chief Secretary, MSME & T Deptt., GoWB observed that  in view of potential and past performance, the target of MSE sector may be raised from Rs 9000.00 crore to Rs 11000.00 crore.

    Shri P K Roy and Shri R K Mohanty, General Manager, UBI pointed out that due to reclassification of some of the segments of credit under MSE, there was an unusual growth last year in MSE sector which is not going to happen this year. .

    Dr Chakraborty, explained the issue to the house and opined that there is no point in fighting for target. Assigning to high a target which is not achievable will discourage them to make sincere attempt to achieve it.  If they can achieve 24%, that would be a good achievement.

    Shri Hridayesh Mohan, Secretary, Agriculture Deptt., GoWB:

    Agriculture credit in our State has started with a very low base that makes the growth look good; however, in actual terms the flow of Agriculture credit in the State is far below the required level. During 2010-11 against a target of Rs 16000.00 crore banks have achieved Rs 11255.00 crore. The credit requirement for bringing green revolution in the State is Rs 22120.00 crore as against which target of Agriculture loan has been fixed at Rs 20300.00 crore which will be inadequate. About 13.00 lac KCCs for which all the base works are complete, are lying dormant. Activation of these cards would cause substantial flow of credit to Agriculture sector.

    Dr Chakraborty stated that the present banking network is not capable of catering the entire credit need of Agriculture sector. There should be a collective effort to increase the credit flow system. The bankers will come forward for the sake of their own interest.

    Shri R K Mohanty, General Manager, UBI informed that absence of banking habit amongst the farmers is the main reason of dormancy. Instead of repaying the loan amount in time, they invest the money in another crop without routing it through the banks. This leads the accounts to turn NPA.

    Shri P K Roy informed the house that the bankers are trying to create awareness amongst the farmers about 3% interest subvention schemes admissible on timely repayment of loan. The State Govt. machinery can immensely help to publicize the scheme amongst the farmers.   

    Dr Chakraborty reiterated that 76% growth is not a bad projection.  Bankers should chalk out a year wise plan to cover all the eligible left out farmers. The plan should also include activation of dormant KCCs. The. Bankers must be able to provide outstanding number of KCCs at the end of each year. They must assure the Govt Deptt. that the job will be done by them according to their capability. 

  7. Deposit Advance and CD ratio: The CD ratio marginally increased from 64% as on 31.3.2010 to 65% as on 31.3.2011. Deposits grew by 18% and advance grew by 20% as against 15% growth in Deposit and Advance both during previous year.

  8. Outstanding credit to Priority Sector increased by 22% during the year. The growth in Agriculture, MSE and OPS sector has been 10.5%, 43.19% and 12.77% respectively. Dr Chackraborty advised to examine the correctness of the data also.

  9. Outstg credit to Weaker Section/SC-ST/Women Entp. & Minority Community: The house noted the progress

  10. Credit linkage of Self Help Groups: The house noted the progress.

  11. NPA Position: The house expressed concern over the rising trend of NPA in Education Loan, Housing Loan and also in Govt.sponsored schemes. Dr Chakraborty advised the banks to identify the reasons particularly in Education Loan.

Thereafter, Dr Amit Mitra, Hon’ble Finance Minister of West Bengal highlighted the following issues in his deliberations:

  1. Bankers need to change their mindset for realistic progress / development without any jugglery of data as there is no baggage in the development system in the current situation.
  2. The targets should be realistic and aggressive at the same time; the bar should also be lifted.
  3. The time series data produced on achievements are exciting but when these are compared with the credit requirement, they appear to be inadequate.
  4. The PLP of NABARD and targets proposed by SLBC are widely different particularly in Agriculture sector. It needs to be ascertained whether NABARD is over optimistic or SLBC is less optimistic. Some rethinking may be done in this area.
  5. The CD ratio is low in eight districts; the committees that have been formed should identify the reasons and formulate action oriented strategies. What the State Govt. can do in this respect should also be suggested.
  6. Setting up of RSETIs is a good venture but one RSETI in each district does not seem to be enough. The training system which is a part of corporate social responsibility has to be scaled up.
  7. Bankers are generally risk averse; can there be new product for rural people not needing to offer collateral security. It is reported that bankers are seeking collateral security even in cases where it is not required.
  8. The State Govt. is thinking about switching to electronic mode for payment through EBT etc. The Bankers, who are the market creators have to develop their own technological structure that suits their need. Managing information is most vital in today’s context and use of technology can bridge the gap. What technological collaboration the bankers need from the State Government is to be identified.
  9. Whether the present human capital in the banking system is adequate for next five years; have the bankers assessed the position and planned accordingly. Whether the training system for the employees includes training facility on technology?
  10. In issuance of KCCs, achievements of some banks are miserably low; the reasons are to be identified and poor performing banks to be persuaded to rise to the occasion.
  11. Specific strategies are to be worked out for 17 clusters identified for MSME financing. Bankers should take full advantage of cluster financing.
  12. Bankers have to think of massive reduction in transaction cost in the next five years.
  13. A serious study has to be undertaken to ascertain if Coop Credit system would be viable in West Bengal? What is the vision of the banks in this respect?  Whether Coop Banks are functional?
  14. Marketing support from NABARD for SHGs and farmers is not adequate. Aggressive steps are to be taken by NABARD.
  15. Banks are setting up banking outlets through BC model but not introducing micro insurance. Banks are to evolve appropriate payment system suitable for No Frills A/cs.
  16. Serious problem is persisting in SHG sector – is it the high cost of transaction to serve vast rural people? MFIs are charging 27% to 28% interest from the beneficiaries – what is the break up of share going to banks, intermediaries and MFIs? Bandhan and 21 such MFIs are extending micro credit but people do not understand the product.
  17. The issues raised by the banks viz. a) Enfocement of SARFAESI Act, b) Non renewal of lease agreement of Tea Gardens, c) providing soft copy for NREGA/NOAP payments, d) Allocation of land to RSETI and e) Conversion of Agril land for creation of Equitable mortgage will be taken care off..
  18. The concept of Second Green Revolution will not materialize without involvement of the banks – the big partner; they have to be adventures and have to bring tectonic shift in their activities to achieve the goal.

In fine Dr Mitra opined that there is still some gap between the expectation of the State Government and performance of the banks. However, bankers will be their big partner for the next five years in developing the State. Market building and consequent business development will be the prime function of the banks.

Responding to a question raised by Shri S Kaushik, Circle Officer, PNB, Dr Mitra opined that bankers can play the role of catalyst to bring together 20-30 farmers and providing them Agriculture Equipments as group finance as is practiced in some other States. Bankers also have the responsibility to develop and finance the entire value chain system for processing and preservation of fruits and vegetables.

The following dignitaries took part in the deliberations and points highlighted by them are as under:

Shri J. P. Dua, CMD, Allahabad Bank: Action Plan should be implementable and should fulfill the expectations of the Government at the same time. Bankers have great responsibility to achieve targets particularly in Agriculture and MSME sector. For successful implementation of FIP, BCs are to be made viable by allowing them to handle multiple products including micro insurance. Branches are to take care to implement the proposed scheme of payment of salary of State Govt. Employees through banks. Banks expect the State Government to extend help by providing soft copy etc for quick service.

Shri Arun Kaul, CMD, UCO Bank: With a view to achieve the ambitious targets, bankers have an opportunity to fund various chains for processing and preservation of fruits and vegetable which are abundantly produced in the State. 

Shri Salim Gangadharan, RD, RBI, Kolkata: Bankers should sit together and evolve action points for the next five years. They should identify the key issues to be discussed in the SLBC meetings. The action points of the banks and State Govt. should be clear. There should be clarity of objectives with ownership of the action points.

Dr A K Chanda, Additional Chief Secretary, MSME & T, GoWB:  Banks should fully utilize the absorption potential of the State in MSE sector. Sickness of units is generally identified at a belated stage after the Net Worth of the units is totally eroded. There should be a mechanism to identify sickness at an early stage and place them under nursing for rehabilitation/revival.

Shri Bhaskar Sen opined that there should be a study conducted on sickness of industrial units and the report thereof be placed in the next SLBC meeting for discussion.

Shri N S P Rao, CGM, NABARD: Formation of 1.00 lac JLG as envisaged in the State would not be possible without the support of the State Govt. The State. Agriculture Deptt.should join hand with the banks to scout more proposals for KCC and investment credit as well. The State has also potential to increase seed production.

Shri Suriender Kumar, CGM, SBI: The rural and semi urban branches of the bank remains heavily engaged for making payments under NREGA and other scheme at the cost of normal business activities. Smart Cards have to be introduced for these payments but the issue of sharing a portion of transaction cost involved in the process has not been addressed. SBI has adequate training arrangement for their employees and fully aware of the human capital need for the years to come.

Shri Ashok Bandopadhyay, Chairman, W B State Coop Bank Ltd: Despite having a very low deposit base, the bank has advanced 24% of the total Agricultural loan disbursed in the State during last year. The bank has not done too well in MSE sector as the bank has not been considered as MLI of CGTMSE despite repeated appeal made through SLBC. The bank has also been denied the interest subvention facility on housing loan available to commercial banks. The bank is not being allowed to open new branches as their Credit Asset Ratio (CRAR) is less than 9%.

Shri Anil Agarwal, Principal Secretary, Animal Resource Deptt.: Performance of the banks under Dairy segment is really commendable at 120 % but performance under Poultry segment which is 21% only needs to be improved. Absence of corporate circular on central scheme on Animal Husbandry is still a hurdle towards implementation of the scheme. Banks may upload their circulars in their respective websites.

Smt. Saswati Banerjee, Jt. Secretary, P & RD Deptt. Govt. of West Bengal: Land has been allotted for Murshidabad RSETI, and about to be allotted to Nadia, Burdwan, Birbhum and Coochbehar districts. The quality of training imparted in RSETIs is not up to the mark. A sub committee of SLBC on RSETI to be formed should review their performance. Next year, SGSY scheme will be replaced by National Rural Lively hood Mission; hence, all the pending gradation etc of SGSY/SHGs to be completed by December 2011.

Shri N Raja, CEO, BCSBI:

  • There should be easy Credit flow to MSE sector with full transparency.
  • Borrowers under MSE sector have a charter of rights. They also have an obligation to repay their loans.
  • Although 17% of the GDP comes from MSE sector, 92% of the entrepreneurs do not enjoy credit facility from the banking system.
  • Bankers should focus on financing MSE units and not insist collateral security where it is not required.

Shri Ardhendu Sekhar Biswas, MD, SSEUEY, GoWB: There is information gap between banks and the Society. The recovery percentage under BSKP scheme is deteriorating because of incomplete and delayed disbursement. Some banks are insisting for collateral security though it is not required. Huge amount of undisbursed subsidy is lying with the banks.

Shri Dasrath Singh, CGM, Ag Insurance Co Ltd.: Insurance coverage under NAIS is compulsory for all crop loans granted for notified crops. Financing banks may be penalized for non coverage of crops, if claim is lodged by the loanee farmers.

Shri S K Datta, GM, WBFC: Targets allotted to the corporation are at a higher side which may be revised. As the corporation does not extend Agriculture credit, there should not be any target under the head.

Shri S K Moulik, Additional Director, Directorate of Employment: As the problem of providing subsidy under USKP has been overcome, embargo on disbursement of loans under this scheme may be lifted. (circular already issued).

Dr K C Chakraborty, Dy Governor, Reserve Bank of India summed up the proceedings with his observations on different issues as under:

  • SLBC meetings are to be organized in more structured manner to work out specific action points to be implemented within a definite time frame.
  • Size of the SLBC should not be too big and only the members should normally participate in the meetings.
  • Apart from achievements under FIP and ACP only major four - five issues should be discussed in the SLBC meetings. Full particulars including number of beneficiaries, amount disbursed, outstanding balance, NPA position etc should be made available for fruitful discussion. For reviewing progress under FIP, number of A/cs opened; Smart Card/ KCC/GCC issued and problems faced, if any, should be provided to the house for discussion. Other issues should be discussed in Sub Committee meetings and decisions arrived at should be placed in the SLBC meetings for approval. For inclusion of any other Agenda item for discussion in SLBC meetings, prior intimation is to be given to the Convener Bank with background papers.
  • Discussion in SLBC meetings should directly start with Agenda wise discussion which again should start with the compliance of action points of the previous SLBC meeting. Participants will give their observations at the time of Agenda wise discussion only.
  • There should have been clear decisions as to how 1.00 lac JLGs would be created. What support is necessary from NABARD and State Govt. in this respect?
  • Can NABARD work out a plan to develop value chain system for processing and preservation of vegetables and fruits?
  • Setting up of bank branches is necessary in the 17 clusters that have been identified for MSME financing.
  • For dealing with the issue of sickness of industrial units an empowered committee is already in place under the chairmanship of Regional Director, RBI.
  • It is good that RSETIs have been opened in all the 18 districts of the State but it is also important to know how many training programmes they have conducted, how many participants have been trained and how many of them have been provided with Financial Assistance from the banks to set up their units?
  • There is talk about risk aversion on the part of bankers’ i.e. apprehension of possible failure of the borrowers to repay the loan - failure to a certain degree is inevitable in every sphere. There is coverage of CGTMSE for MSE units, NAIS for crop loans. It will be good if new insurance product for Education loan is also developed. Almost all Insurance companies have developed micro insurance products; how these products can be clubbed with the micro insurance products under FIP that has to be planned. How State Govt can extend assistance in the matter that is also to be explored?

SLBC should work out how the forum can be made more professional and effective.

Shri Bhaskar Sen, CMD, UBI assured Dr Cackraborty that the advises received from the Hon’ble Finance Minister and Hon’ble Dy Governor, RBI will be followed by the SLBC to bring about necessary changes in its function and make the forum more effective. The Action points will be worked out and sent to Hon’ble Finance Minister soon.

The following major action points emerged from the meeting:

  • ACP- 2011-12: As it is difficult to remove the credit gap in the State within a period of just one year; no further addition has been made in the target under ACP -2011-12. However, the bankers will try to achieve 120% of the target under Agriculture sector sincerely.  As advised by Dy Governor, RBI a mid term review of ACP will be undertaken by the SLBC.( Action : Banks & SLBC).
  • CD Ratio: The Lead District Managers of the eight districts will submit detailed reports on the meetings of the Sub Committee on CD ratio containing problems identified and corrective measures adopted. The implementation status would be informed to the SLBC for monitoring. ( Action: LDMs of the concerned eight districts) 
  • Sub Committees on Agriculture, MSME and Financial Inclusion already in place will meet more frequently to discuss the problems and prospects of credit flow to these sectors / implementing FIP in an effective manner. A Sub Committee of SLBC on RSETI will be formed soon with a view to examine details of training imparted, quality of the trainings  and extent of coverage of the trainees with Bank finance. The observations of the Sub Committees will be placed in SLBC meetings for ratification. (Action: Convener of the Sub Committees)
  • KCCs: The member banks will identify dormant KCCs (where no disbursement made during the year or no balance is outstanding) and make fresh disbursement in those KCCs in the current Kharif season. The disparity in the performance of the banks in issuing new KCCs need to be removed; the under performing banks will make sincere effort to improve their performance. Concerned Deptt. of State Govt. will sponsor adequate number of proposals to the banks. (Action: Banks and Agril. Deptt.)
  • All Crop loans sanctioned should invariably be covered under NAIS as it is mandatory. Non loanee farmers should also be covered under the scheme.  (Action: Banks)
  • In 46 identified clusters (Block) allotted amongst the banks, KCCs will be issud to all the eligible farmers within 31st July, 2011 under the programme “Bringing Green Revolution in Eastern India”. The entire programme would be implemented in coordination with the Agriculture Deptt.  (Action : Banks, NABARD & Agril Deptt.).
  • NABARD will facilitate formation of JLGs in the identified clusters and also in other villages so that the members of JLGs which could also be covered with KCCs (Action : Banks, NABARD & Agril Deptt.).
  • For financing MSME sector special focus should be on the clusters identified by the State Govt where banking presence has also to be developed. There should not be any insistence for collateral security up to a limit of Rs 10.00 lac. and advances up to Rs 1.00 crore may be sanctioned without collateral under CGTMSE coverage. ( Action: Banks & State Govt.).
  • SLIIC Subcommittee and Empowered Committee on MSME of RBI should discuss the issue of sickness and identify the reasons with remedial measures to be adopted. ( SLIIC Sub committee/ Empowered Committee). 
  • While discussing progress under Financial Inclusion Plan, more emphasis should be given on issuance of KCCs & GCCs, Smart Cards issued, number of A/cs opened , introduction of micro insurance and other products to be developed in collaboration with the State Govt.( Action: Banks, State Govt.).
  • NABARD will undertake a study to find out how far Coop Credit System will be effective in augmenting credit flow in rural areas. They will also extend marketing support to SHGs and examine how intermediary cost in SHG finance can be reduced. ( Action: NABARD).
  • NABARD will also study the cold chain system that needs to be established in the State for preservation of perishable vegetables and fruits. ( Action: NABARD).
  • Deployment of credit to SHGs has to be rationalized and grading etc has to be completed within the year with a view to increase the credit involvement per SHG Rs 50000.00 and deposit: credit ratio is increased to at least 1:4. ( Banks, Govt. Deptt.)
  • In the next meeting of the Agriculture Sub Committee, views of the bankers on financing MFIs should be discussed.( Action: Agri Sub Committee).
  • Pending issues raised by the banks such as – providing soft copy for NREGA payment, providing support for enforcement of SARFAESI Act, and providing land for RSETIs will be looked into by the State Govt. ( Action: State Govt.).  
  • The bankers are requested to ensure adequacy of training system for their employees and send report in this respect to the Convener Bank. They also need to provide feedback on the workings of No Frills A/c for discussion in the next SLBC meeting. ( Action : Banks).
  • Subsidy on BSKP withheld by the banks: The Society for Self employment of unemployed youth will provide a Bank wise, branch wise list of names of the applicants   to the SLBC for onward distribution amongst the banks for locating such undisbursed subsidies at branch level. On receipt of the list, the banks will prepare a status report on each case and submit it to the Society with copy to the convener bank. The undisbursed amount, if any, should be immediately refunded to the Society. (Action: SSEUEY & Banks).
  • Opening of banking outlets in allotted villages as per roadmap to be intensified by the bankers.(Action: Banks).
  • Monthly and Quarterly Progress Report on Implementation of FIP shall be submitted to convener bank within 7th of the next month for consolidation and submission to RBI. (Banks & LDMs).

Vote of thanks:

Shri S L Bansal, Executive Director, United Bank of India while extending vote of thanks highlighted that the credit absorption potential of the State as stated by the Hon’ble Finance Minister and estimated by NABARD, can be fulfilled if sincere effort is made by the banks  to reach out to the unbanked areas under Financial Inclusion Plan. The Hon’ble Finance Minister expected us to raise the bar and go for realistic but aggressive targets. We have already allocated 7486 villages having 2000+ population and 8605 villages having population from 1000 to 2000 amongst the banks for providing banking services. Although the challenge is huge, it can be met through use of technology as poor are also bankable. We should aim to reach the last man who is waiting for us. We extend our hearty thanks to the Hon’ble Finance Minister of the State, Dy Governor, RBI for providing time and guiding us. We also extend our thanks to the CMDs of Allahabad Bank and UCO Bank, RD, RBI, Secretaries of State Govt, CGM, SBI & CGM, NABARD and other senior executives of the RBI, NABARD, banks and State Govt. for sparing time  for attending the meeting. Let West Bengal be show cased as a model state in regard to implementation of FIP and achievement of targets.

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