State Level Bankers’ Committee, TamilnaduConvenor: Indian Overseas Bank

Minutes of the 129th SLBC MeetingHeld on 19/03/2012

129th SLBC Meeting of Tamilnadu was held at Chennai on 19th March, 2012. List of participants is furnished in the annexure.

Welcome Address: Shri.A.D.M. Chavali, Executive Director, IOB welcomed the participants to the 129th meeting of SLBC, Tamilnadu. In his welcome address, he solicited co–operation, support from the members for timely submission of the precise data and steady flow of information.

He also requested Departments of the State Government to submit the required performance data relating to various Government Sponsored schemes well in time to enable SLBC to include the same in the agenda for a purposeful discussion by the forum.

Shri.A.D.M.Chavali also praised the SLBC for remaining consistently on top of all States in respect of CD ratio.

Inaugural Address:-

Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and Chairman, SLBC, Tamil Nadu in his inaugural address reviewed the progress made by the Banking system in Tamil Nadu under various key parameters and outlined the action areas for Banks as under:

• The focus now is on Financial Inclusion. Many new and unconventional responsibilities have been bestowed on the SLBC and the DCCs. Going far beyond the traditional role functions, now this forum takes care of several new activities like implementing e-payments system, Swabhimaan,

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Swabhalamban, New textile Scheme, benefit payments, financial literacy and entrepreneurial training etc. The manpower and infrastructure has to be commensurate with the expectations. CMD, IOB requested all banks to provide the LDMs with adequate manpower, infrastructure and other support and the LDMs ought to be in Scale V or Scale IV as per guidelines.

• Ministry of Finance, Government of India had advised to grant crop loans to all eligible farmers by 15.10.2011. SLBC convened special meetings and drafted action plans which was circulated among all member banks. The recent guidelines issued by Ministry of Finance advised all banks to extend KCC, GCC and other suitable loans to all eligible farmers and non-farmers in the service area of each branch before 15.01.2012. He expressed hope that all banks would have completed this task.

Financial Inclusion:

• CMD, IOB proudly informed the forum that as on 17/03/2012, only three villages out of 4445 were left to be covered. He was confident that those three too would have been covered by this time.

• He is expecting the Honourable Chief minister of Tamilnadu to attend a special function in the month of April and to formally announce hundred percent coverage of villages in the state. He congratulated all the banks for this accomplishment. He requested all banks not to remain satisfied merely with appointment of BC and activation of hand held device. Smart Cards must be issued to eligible villagers and transactions must be carried through in order to treat the village as financially included.

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• Coverage of villages with population above 1000 but below 2000 stage constitutes the next phase of inclusion. 4430 such villages have been identified through respective DCCs and allotted to Banks for extension of Banking Services. SLBC has sent the list of villages district wise to all LDMs once again with a request to submit the final list of villages after incorporating additions/ deletions / reallocations if any on or before 31.03.2012. The member banks can take up the issues if any with respective LDMs. It would not be possible for SLBC to keep on revising the list again and again.

• The Ministry has instructed that all BC outlets be elevated to the status of Ultra Small Branches (USBs). IOB has already opened 32 USBs in Tamil Nadu and the number is set to rise in near future. Canara Bank has also opened USBs in the states. Next quarter onwards SLBC would also collect information about USBs.

• The Ministry has advised all SLBC convenors to ensure that all the subsidies / grants in 35 Centrally Sponsored Schemes are credited directly to the accounts of the beneficiaries electronically through bank accounts. The request is already made to the State Government. He was happy that the Government of Tamilnadu is very positive on this matter. He appealed to all member Banks to open hassle free no frill accounts, to facilitate smooth transition to 100% Electronic Benefit Transfer mechanism in our State.

REVISED SERVICE AREA PLAN

CMD, IOB happily informed the forum that all the 31 districts in Tamil nadu have prepared their revised Service Area Plan as per the format prescribed by Ministry of Finance, Government of India and uploaded the same in the

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respective District websites. Ours is one of the few states to have done it by March.

RSETIs & FLCCCs :

(Rural Self Employment Training Institutes and Financial Literacy cum Credit Counselling Centres)

• CMD,TOB expressed satisfaction on establishment of Rural Self Employment Training Institutes (RSETIs)in all districts. IOB has inaugurated a RSETI and a FLCCC at Kothagiri for the benefit of tribals of Nilgiri district. He expressed that it is necessary for all RSETIs to develop a system of tracking the careers of the trainees after they complete a vocational course in a RSETI. He wanted the SLBC to collect and provide the forum the number of candidates trained through the RSETIs and how they are beneficially employed after the training.

SLBC WEBSITE

Recently a standardized format for the websites of all SLBCs was adopted in the Conference of SLBC Convenors held in the first week of March 2012. It is informed that RBI would shortly issue a circular on the contents of standardized SLBC website. The website has to contain a great deal of information about all participating Banks and their performance. This would necessitate very quick and correct submission of data by all banks to SLBC.

Highlights of Banks’ Performance in Tamil Nadu

He then listed out some of the highlights of the achievements of the Banking system in Tamil Nadu as at the end of December 2011 and also the

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performance under Annual Credit Plan during the nine months ended December 2011. He critically reviewed the CD ratio of Kancheepuram district which is just 52%. He advised the member banks and also LDM Kancheepuram, to include the credit disbursed to units located in Kancheepuram district through branches in Chennai & other places in the credit flow for Kancheepuram district. He expected the Banks to achieve the targets under DRI & Micro & Small Industries. He praised the Bankers for their splendid performance under annual Credit Plan.

Before concluding, CMD, IOB requested Agricultural Department of the State Government to assist the Banks by providing them village wise list of all eligible but uncovered farmers.

He observed that the subsidy under some state schemes is not forthcoming from the state government although fresh applications continue to be forwarded. This needs to be addressed by the state.

He also requested the support of State Government to the Banks for recovery of overdue loans.

The State Government was requested to undertake the exercise to fully automate the treasury operations including their interface with the banks.

CMD, IOB thanked the State Government, Chief Secretary, Secretary Law Department for having acceded to the request of SLBC and having issued a G.O on 23.02.2012 notifying all Municipal Corporations, Municipalities and Town Panchayats for the purpose of creation of equitable Mortgage by way of deposit of Title Deeds under Sec.58 (f) of Transfer of Property Act, 1882.

CMD, IOB & Chairman, SLBC acknowledged the whole hearted and continued support received from the Government, Reserve Bank of India, NABARD and

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the member Banks both at the State level and at the Districts level and thanked them for the same.

Key note address:

Shri. S. Krishnan I.A.S, Secretary (Expenditure), Government of Tamilnadu observed the following in his keynote address:-

1. In the state of Tamilnadu banks have so far opened 69 Lac No Frill accounts. It is difficult to equate this number with 1.83 crore ration cards in the State. The gap is to be filled in and we must bring everyone into the fold of financial inclusion.

2. The State Government proposes to link everybody with the financial channel. So far it has linked four important schemes of the State like Old age pension scheme and also proposes to link 32 centrally sponsored schemes through banking channel. Our Hon’ble Chief Minister has instructed that all the social security pensions and other benefit schemes should go through only banking channels. This is to ensure a quick, hassle free transfer of the benefits to the ultimate beneficiary. For this purpose, opening of more number of branches in the State is an important yardstick.

3. The banks are required to extend more and more direct agricultural advances in the place of jewel loans.

4. The request of the banks in making land records available and the data on farm holdings online will be taken seriously.

5. The State Government likes to be a part of the efforts of banks in opening of ultra small branches and appointment of Business correspondents. Many of the State Departments are moving towards online payment system. The largest tax collection

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department is our Commercial Taxes Department and they have already made 60-65% of their operations online.

6. The State Government will be launching a project very shortly to completely computerize the treasuries in the State in two years time. We will be evolving a system to integrate treasuries and the banking system.

After the address by the dignitaries the Agenda was taken up for discussion:-

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that recently a conference of the SLBC Convenors was held at Pune and the following 3 important points were discussed in the meeting:-

1. Starting from 1/4/2012 RBI will not accept any data/MIS in manual form submitted by DCC/SLBC. The data has to be keyed in online and any soft form of the data also is not accepted.

2. There will be a common format for the websites of all SLBCs.

3. All the banks should submit the names of villages under Financial Inclusion supported by Census code of 2001.

AGENDA:1

CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING :-

The forum confirmed the minutes of the 128th State Level Bankers’ Committee Meeting held on 07.12.2011.

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AGENDA No: 2

1. Providing banking services in every village having population of over 2000 :-

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the house that as on 17/3/2012 all the 4445 villages except 3 are covered by banks by BC model/branch model/ Satellite banking model. He was also hopeful that the pending villages will be covered in a day or two by the respective bank. The Regional director, RBI complimented the efforts taken by SLBC and banks in achieving 100% coverage. It was clarified by Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu that the issue of one bank appointing a BC and operating in their allotted village and another bank opening a brick & mortar branch in the same village is often raised by bankers nowadays. However, in the absence of clear-cut guidelines on this, both BC and branch shall continue to operate in the village.

Action:Banks

2. Interest subvention scheme for housing loans up to Rs.15.00 lacs:

Shri.M.Narendra, Chairman & Managing Director, Indian Overseas Bank and Chairman, SLBC, Tamilnadu said that the scheme is extended to the current year also in the current budget. However the submission of claims by the banks is very less when compared to the volume of housing loans sanctioned. The National Housing Bank is having huge funds under the scheme. He advised the member banks to claim the eligible subvention amount immediately so as to pass on the benefits to the small customers, who avail lesser amount as housing loans.

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Shri.N.S.Vishwanathan Regional Director, RBI advised that the lower rate of interest subvention claim gives an impression that lesser number of housing loans are sanctioned to the target group. Mr. Christopher from National Housing Bank informed the forum that the claims to NHB are to be submitted on a monthly basis. The scheme is operational from October 2009. Any omitted claim may also be made now, but under the earlier guidelines of Rs.10 lakh loan and Rs.20 lakh project cost.

Action:Banks

3.G.O.(Ms) No.46 dated 06.02.2012 on “Cyclone Thane affected District”:

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that Government of Tamil Nadu has declared two districts, viz., Cuddalore and Villupuram as affected by cyclone Thane. He requested all the banks operating in these two districts to extend relief and rehabilitation measures.

The Regional Director, RBI advised that there are extant guidelines which become operational in case of natural calamities.

Action: State Government /Banks

4.Extension of credit facility to Oil Palm and Purchase of Farm Machinery:

Shri. K. Manivasan, IAS., Commissioner, Department of Agriculture informed the forum that Oil Palm cultivation promises great potential for the farmers in the State. The area under Oil Palm cultivation is not progressing over the

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years in the State despite availability of Rs.33.60 crores as subsidy. A subsidy of nearly Rs.1.00 lakh/ha is available for planting material, borewell, plant protection material, maintenance etc. There is lack of awareness among the farmers for which the Department is taking lot of initiatives now.

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that the scheme for cultivation of Oil Palm is operational in 11 districts and the scheme for purchase of Farm machinery is operational in 5 districts.

Action: Banks

5.Setting up of Rural Self-Employment Training Institutes (RSETIs):

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that all the 4 lead banks have since established RSETIs in all the 31 districts of Tamil Nadu and added that mere establishing an RSETI will not serve the purpose. The RSETIs should endeavor to impart quality skill training to the poorer sections of the society and also should ensure that they get employment or self employment after the training. SLBC will henceforth collect data on the number of training programmes, number of persons trained and the number of persons secured employment.

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that Mr.Srinivasan of the State Monitoring Cell on RSETIs is a member of the Steering Committee of the SLBC. He has also informed the forum that the State Government is willing to allot land for construction of buildings in the name of the BDO by way of tripartite agreement to be entered among the BDO, Bank and the P.O. Mahalir Thittam.

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The land will be continued to be occupied by the bank as long as the RSETI exists.

Action:Banks

6.SETTING UP OF FINANCIAL LITERACY & CREDIT COUNSELLING CENTRES (FLCCC)

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu requested State Bank of India to open FLCCCs in the two districts allotted to them i.e., Ariyalur & Tuticorin.

Action: SBI

Shri. Sharad Sharma, Chief General Manager, SBI informed that FLCCCs are established through a society by State Bank of India. The process of registration of the society is taking time and the bank is on the job.

7. Financial Inclusion & Green Initiatives - Electronic transfer

of benefit payments :-

Shri S.N.Misra, Convenor, SLBC informed the forum that Government of Tamil Nadu had decided to extend the Old Age Pension Scheme to all the villages with a population of 2000 or more identified under the Financial Inclusion plan in the state by 30.06.2012. At present it is operated only in 3 taluks. In addition to the Old Age Pension, the Government of India has stipulated electronic benefit transfer in 35 welfare schemes. He also added that Government of Tamil Nadu have given an assurance that in a phased manner all the schemes will be routed through bank accounts.

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Shri. Jayaraman I.A.S, Additional commissioner, Revenue Administration informed the forum that the speed of capturing of biometrics in the districts is very slow as the villages are expected to be covered by June 2012. He advised the forum that a remuneration Rs.30/- per credit transaction and a one time reimbursement of Rs.50/- for the smart card has been finalized and orders are being issued by the State Government.

Shri. S.N.Misra informed the forum that the banks should open the accounts immediately to facilitate transfer of funds by organizing special camps/deputing necessary manpower etc.

Action: Banks / State Govt.

8. Payment of proper Stamp Duty on Certificates of sale issued by Recovery Officers of Banks under SARFAESI Act, 2002:-

Shri.Madalaimuthu, Additional Inspector General of Registration, informed the forum that the certificates of Sale issued by Recovery Officers of Banks are treated as Conveyance under Article 23 of the Indian Stamp Act,1899 and they are liable to stamp duty of 6% along with 2% surcharge on market value. He requested the banks to issue necessary instructions to their branches/ officials. He also requested the banks to advise the buyers of the properties to register them with the Sub-Registrar’s office within the stipulated time.

Shri.Mohanty, Chief Manager (Law), Indian Overseas Bank informed that as per Indian Registration Act Sec.17(2)12 the privilege given to the Sale certificates issued by Revenue court/Civil courts. The Madras High court held in the year 2007 that the Sale certificate issued under SARFAESI Act,2002 enjoys the same status of civil court or Revenue Court. Therefore

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there is no need to pay the surcharge.The Inspector General of Registration is requested to re examine the issue.

Shri.S.Krishnan, Secretary (Expenditure), Government of Tamil Nadu suggested that Government of India may be requested to amend the SARFAESI Act, 2002 suitably on the issue of payment stamp duty on Certificates of Sale issued by Recovery Officers of Banks, and the issue cannot be solved at SLBC.

Action: SLBC / State Govt.

9. List of Notified Towns under Sec.58 (f) of Transfer of Property Act, 1882 for creation of equitable mortgage in favour of banks:

Shri.S.N.Misra, Convenor, SLBC thanked the State Government for issuing orders notifying all Municipal Corporations, Municipalities and Town Panchayats in the State for the purpose of creation of eqitable mortgage under Sec 58 (g) of Transfer of Property Act,1882 and requested that the Government may notify all the places where the bank branches are located.

Action: Banks / State Government

10. Government of India’s Revival, Reform and Restructuring package for Handloom Sector:

Shri.K.Subrahmanyam, General Manager (MSME), Indian Overseas Bank informed the forum that in the special meeting of the SLBC held on 03.02.2012, all the bankers had promised to furnish the details of their exposure to handloom sector in the prescribed format which was sent to the Banks, by SLBC on 29.12.2011. He also added that no bank had submitted the details so far. As per the scheme, the claim is to be made within 60 days

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from the date of acceptance of the scheme by the State Government, which is 19.01.2012 in Tamil Nadu.

Smt.Lalitha Venkatesan, Chief General Manager, NABARD informed the forum that the 60 days period comes to an end on 19.03.2012. The weavers outside the co-operative fold form only minor portion of the beneficiaries, for which the data to be submitted by banks. Unless the data are received in time the banks will not be eligible to make a claim. She also advised the banks to submit the claim directly to NABARD.

Action: Banks

Shri.L.Thirugnanasambandam, AGM, SLBC pointed out despite the best efforts by SLBC only 6 banks have sent the data so far. He added further that NABARD already clarified that the claim will be settled only on first come first served basis. He further informed the forum that SLBC will wait only upto 20.03.2012 and will submit the available data to NABARD by then.

11. Rural Self Employment Training Institutes – Appointment of State Project Co-Ordinator:

Shri.S.N.Misra, Convenor, SLBC, informed the forum that Shri.R.Srinivasan is appointed as State Project Co-ordinator of the National Monitoring Cell of RSETIs.

12. T.N.Government’s Old Age pension Scheme - Payment through banking channel - through business correspondents:

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that the State Government has decided to extend the

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scheme to all villages with a population of 2000 or above identified under Financial Inclusion Plan in the State by 30th June,2012 through the model.

13. Ministry of Finance, Government of India’s directives on Lending to Agriculture:

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu advised the forum that there is no concrete data available on the number of farmers in the State. The tentative data made available by the Department of Agriculture on the no. of farm holdings in the State is 82.70 lacs. The banks in Tamil Nadu have covered all the farm holdings. In the absence of data on no. of farmers in the State, it is assumed that no. of farm holdings is equal to the no. of farmers and banks in Tamil Nadu have covered this number extending Agricultural Credit limit. The State Government is requested to make available the data on the farmers in the State.

Action: State Govt.

14. Variation between BSR and SLBC data:

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that the variation between the data submitted by banks directly to RBI in BSR and through SLBC is very high. As both are extracted out of the Core Banking System there cannot be any variation in the data. The data submitted by few banks show very high variation.

Shri.N.S.Vishwanathan, Regional Director, RBI advised each bank to look into their data which is given in the agenda booklet and to reconcile the differences. He also suggested that all the major banks can have discussion with RPCD, RBI, Chennai and reconcile the difference.

Action: Banks

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Agenda No. 3:-

Review on banking developments in Tamil Nadu on key parameters as of December 2011 :

The forum noted that year on year incremental deposits & credit growth was to the extent of 19.19% and 19.70% respectively for the period December 2010 & December 2011. The CD ratio has gone up from 113.90% as of December 2010 to 114.38% as of December 2011. The share of agricultural advances was 18.75 % against the national norms of 18%. The banks have covered 100% uncovered non-defaulter farmers in the State. The forum advised member banks to accelerate lending to weaker sections.

Action: Banks

Agenda No. 4 :-

Review of Performance under Annual Credit Plan 2011-2012 (April 2011 to December 2011)

Smt.Lalitha Venkatesan, CGM,NABARD advised that the farm sector targets are to be in line with the National targets announced in the budget.

Shri. S.N. Misra informed that the ACP is prepared based on the “Bottom up Method” where the credit plans prepared and approved by DCCs are compiled at the SLBC level. At the district level the plan is prepared based on th PLP given by NABARD. The forum took on record the achievement under ACP 2011-12 ( April 2011 to December 2011). The banks have achieved 118% under farm sector, 91 % under Non Farm Sector and 94% under Other Priority Sector.

The forum advised Banks to ensure 100 % achievement under ACP 2011-2012 in all three sectors.

Action: Banks /LDMs

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Agenda No. 5:-

Prime Minister’s Employment Generation Programme (PMEGP)

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu observed that subsidy (margin money) is pending for many cases. The State Director (PMEGP) , KVIC, Chennai informed that Margin money claim of Rs.45.00 Crores pending with various banks will be settled shortly.

Action: KVIC / Banks

Agenda No.6:-

Swarna Jayanthi Sahakari Rozgar Yojana (SJSRY)

The forum observed that the performance under SJSRY is very low when compared to the no. of applications sent to banks under the scheme. The performance is to be improved and the banks were advised to speed up the sanction/disposal of the pending loan appalications and to ensure 100% utilization of the subsidy allotted under SJSRY.

Action: Banks / Municipal Admn.Dept.

Agenda No. 7:-

Swarnajayanthi Gram Swarozgar Yojana (SGSY 2011-2012)

Shri. D.Murali Mohan, JC (Credit), Tamil Nadu Corporation for Development of Women informed the forum that 258 applications relating to 2009-2010, and 821 applications relating to 2010-2011 are pending. He further added that as SGSY scheme is to be replaced by NRLM from next year the banks are requested to clear all the pending applications before March 2012.

Action: Banks / TNCDW

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Agenda No. 8:-

Interest Subsidy for Housing the Urban Poor (ISHUP)

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu, informed the forum that despite several rounds of discussion/meetings and special SLBC on 30.02.2012 the progress is very slow. This may be attributed to various reasons like proper land records not given, name of the beneficiaries not mentioned in the approved plan etc. He also advised the member banks to disburse the sanctioned loans immediately. Shri.Christopher Robin of National Housing Bank requested the banks to lodge subsidy claims immediately even if the first stage of the loan had been disbursed.

Action: Banks

Agenda No.9:-

Bank Finance under Housing Scheme :

The forum took note that housing loan disbursement was to the tune of Rs. 2755.68 crores during the 9 months period (April 2011 to December 2011)

Agenda No. 9(A) :-

Golden Jubilee Rural Housing Scheme ( GJRHFS) :

The forum noted that 4595 loans amounting to Rs.10082.18 lacs have been disbursed during the period from April 2011 to December 2011.

Shri.M.Narendra, Chairman SLBC advised the banks to submit data promptly to SLBC.

Action: Banks

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Agenda No.10 :-

Education Loans :-

The forum took note that banks in Tamil Nadu have sanctioned 97452 loans to the tune of Rs.1305.63 Crores during the nine months period ended December 2011, of which SC/ST, minority communities and women account for 14051 loans amounting to Rs.177.78 Crores, 11308 loans amounting to Rs.173.86 crores and 28767 loans to the tune of Rs.345.19 Crores respectively.

Action: Banks

Agenda No.11 :-

Micro & Small Enterprises (MSE) Sector

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu advised the forum that the share of Micro Enterprises was only 39.56% against the RBI norm of 55% by March 2012 and 60% by March 2013.

Shri.N.S.Vishwanathan, Regional Director, RBI advised the forum that this position is not acceptable as Tamil Nadu is one of the few states in the country having very high potential for Micro & Small Industries.

Shri.M.Narendra, CMD, IOB & Chairman SLBC advised that potential industry clusters can be identified jointly by State Government & banks for financing extensively to promote the industrial activities.

Dr.E.Bhaskaran, Additional Director, Dept of Industries & Commerce informed the forum that 15 industrial clusters have already been identified in Tamil Nadu apart from SFURTI clusters. Bankers can avail of the opportunities to finance such identified cluster activities.

Action: Banks

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Agenda No. 12:-

Credit Flow to Women:

The forum noted that the share of credit to women constitute 8.91 % of total Bank credit as against the national norm of 5% as on December 2011.

Agenda No. 13:-

Credit Flow to Minority Communities:-

As per the guidelines issued by Ministry of Finance, Government of India, the share of credit flow to Minority Communities by Public Sector Banks should be 15% . PSBs in the State were advised to achieve this target as the current level is 13.5 %

Action: Public Sector Banks

Agenda No.14:-

Kisan Credit Card Scheme (KCC)

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu informed the forum that in his recent budget speech, Hon’ble Union Finance Minister announced that henceforth KCC cards issued to the farmers should also function as debit cards. The farmers should be in a position to draw money from ATMs using the cards.

Action: Banks

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Agenda No.15:-

Self Help Groups:-

Shri.Ganesh Khanna, Ac (micro credit) thanked the bankers for their excellent support in financing SHGs during last year. During the current year against the target of Rs.4000/crores banks have disbursed so far Rs.2102.43 crores (53%). He sought the cooperation of the bankers in disbursement of pending applications to achieve the target for the third consecutive year.

Action: Banks / TNCDW

Agenda No. 16:-

Progress on Economic Development Schemes implemented by TAHDCO:-

Shri Shyam Sunder, Deputy Secretary, TAHDCO requested the forum to disburse all the pending proposals and to claim subsidy.

Action: Banks

Agenda No. 17:-

Review of NPA accounts in priority sector lending September 2011:-

The forum noted with concern, the increase in NPA level under educational loans. The percentage of NPA under all categories except Housing loans show an increase over March 2011 level. Shri.M.Narendra, CMD, IOB & Chairman, SLBC informed that Government is contemplating a guarantee fund for educational loans.

Shri.N.S.Vishwanathan, Regional Director, RBI advised the banks who have not submitted the data to submit information to SLBC promptly.

Action: Banks / SLBC / State Govt.

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Table Agenda:-

1.Bankwise/District wise pending PLF Bulk loan applications:-

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu advised all the member banks to process and dispose off all the pending PLF loan applications before March 2012. Smt.Rajeswari from Tamil Nadu Corporation for Development of Women requested the bankers to consider all the pending PLF loan applications as SGSY is to be replaced by NRLM from April 2012.

Action: Banks

2.Automation of State Government Treasuries:-

Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu requested the State Government to implement Automation in the State Government Treasuries and to integrate the same with banks to facilitate speedy, economical transfer of funds.

Action: State Govt.

The meeting ended with a vote of thanks proposed by Shri.G.Manoharan, Deputy General Manager, Indian Bank, Head Office, Chennai.

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