1. PROCEEDING OF 119TH SLBC MEETING HELD ON 17.11.2009
AT BHUBANESWAR
The 118th SLBC meeting of Orissa was held on 17.11.2009 at Bhubaneswar under the
Chairmanship of Shri V. K. Dhingra, Executive Director, UCO Bank and Chairman,
SLBC, SLBC, Orissa. Among others it was attended by Shri R N Senapati,
Agriculture Production Commissioner, Govt. of Orissa, Shri Jugal Kishore
Mohapatra, Principal Secretary to Govt, Finance Department, Govt. of Orissa; Shri
Kaza Sudhakar, Regional Director, Reserve Bank of India, Bhubaneswar; Shri C. R.
Pattnaik , Chief General Manager, NABARD, Regional Office Bhubaneswar; and
Shri S. M . Sinha, General Manager, UCO Bank- cum –Convenor, SLBC, Orissa. The
list of Participants is annexed.
Shri S. M. Sinha, General Manager, UCO Bank, and Convenor, SLBC Welcomed Shri
V. K. Dhingra, Executive Director, UCO Bank and Chairman, SLBC,Orissa; Shri R. N.
Senapati, Agriculture Development Commissioner, Govt. of Orissa, Shri Jugal
Kishore Mohapatra, Principal Secretary to Govt, Finance Dept. Govt. of Orissa,
Shri Kaza Sudhakar, Regional Director, Reserve Bank of India, Shri Chittaranjan
Pattanaik, Chief General Manager, NABARD, Regional Office, Bhubaneswar and
other dignitaries off and on the dais to the 119th SLBC meeting.
In his welcome address, he observed as follows:-
● SLBC, Odisha has been playing a proactive role in coordinating the
functioning of the Banking sector and aligning it with that of Government
department and developmental agencies in the State.
● Odisha Government is committed to recognize the need of providing quality
industrial environment for supporting healthy industrialization. In order to
transform the State into a vibrant economy, State Government has
endeavored to harness the rich potential of the State for socio-economic
development through exclusive industrialization with optimum value addition,
technological up-gradation and export promotion through a proactive
industrial policy.

2. ● Handloom is one of the most important traditional cottage industries of
Odisha. Commercial Banks in Orissa have achieved all national parameters
except DRI & Advance to Weaker Sections advance as on 30.09.2009.
Commercial Banks in Odisha are above the National Parameter with regard
to Priority Sector Advance and Advance to Agriculture Sector.
● In CD ratio, although Banks are above the National Parameter, still it is in
declining trend. Against the deposit growth of 27.25 per cent and advance
growth of 19.40 percent the CD ratio is in declined trend on account of
economic slow down.
● It has come to our notice that performance of Banks under PMEGP was good
and ranked 5th position in the country.
● It is also observed that the performance under ACP upto the 2nd quarter i.e.
quarter ended September 2009 is 87 per cent.
● Flow of credit to MSME sectors also growing at a good pace and the
achievement is 249 per cent of the target as of 30th September 2009.
However, it is noticed that the flow of credit to Government sponsored
scheme is not up to the mark.
Challenges
1. CD ratio in on downward trend due to economic slowdown.
2. Emergences of fresh NPAs on account of economic slowdown still persist.
3. There is a weak demand in credit and Bank’s credit port folio is on pressure.
Recoveries of Bank loans get affected.
4. Banks are seriously concerned on the credit port folio and management of
NPA.

3. Conclusion
In view of the foregoing scenario, he appealed to all members & regulator of SLBC
to have meaningful participation and deliberation in the meeting and to work in
tandem, he, sought cooperation of all concern so as to accelerate flow of credit to
desired sectors of economy in order to boost all-round development of the State.
HIGHLIGHTS OF THE SPEECH OF SHRI V.K DHINGRA, EXECUTIVE
DIRECTOR, UCO BANK, AND CHAIRMAN, SLBC, ORISSA
While expressing happiness in attending 119th SLBC meeting of Orissa and
extending warm welcome to all to the SLBC meeting he, noticed as follows;
● The global financial situation during last one year has caused a lot of panic
and uncertainty all over the world. The economic meltdown had cascading
effect on our economy. Due to the stimulus packages of our Central
Government and Reserve Bank of India, we could overcome a measure
economic disaster and economic depression.
● Our economy is showing signs of recovery due to timely and appropriate
measures taken by the Government. However, as per the assessment of our
Hon’ble Union Finance Minister, the inflation may reach 6 per cent by March
2010 and therefore, continues to be an area of great concern. To add to its
draught situation has pushed up the prices of essential commodities.
● Although, both the Hon’ble Prime Minister and Finance Minister have made
repeated announcement that the stimulus packages will continue for till the
trend of economic recession is reversed, RBI is compelled to initiate anti
inflationary measure like increase of SLR which will affect the liquidity of
banking system. Certain measures like bringing back export credit refinance
facility to the pre crisis level of 15 per cent from the present level of 50

4. per cent, stricter provisioning norms and withdrawal of prepayment charges
are likely to affect the bottom lines of banking system.
● Although, during the last few months capital market as per the indices of
BSE and NSE is on the up suing, yet there is a lot of volatility and it is
expected that the stability will return back by the end of current financial
year.
● The industrial output as measured by the index of industrial production
(IIP) grew by 9.12 percent in September 2009, decelerating from growth
rate of 10.40 percent registered in August 2009. But it was higher than 6
percent in September 2008.
● Nature has endowed every state - some more favorable with its bounties.
Odisha is one such most favoured state, the state possess vast resources of
iron-ore, coal, manganese-ore, bauxite, chromites, nickel, cropper and
graphite.
● In view of large scale industrialization taking place in Odisha, Banks have got
ample scope financing industrial units including SME being the 2nd largest
employment provider and which has high potential for export. Banks
operating in the State are determined to take up viable projects promptly
which will definitely take the economy of Odisha to a greater height.
Providing timely and adequate finance to SME sector under cluster approach
has to be given priority as it offers possibility of reduction in transaction
cost and also provides an appropriate scale for improvement in
infrastructure.
● As advised by Ministry of Finance, Govt. of India, Special Monthly SLBC
meeting is being conducted on monthly to monitor and review the progress of
implementation of special stimulus packages by IBA for MSME, Housing and
Automobile sectors. It is worthwhile to mention that from December 2008,

5. SLBC, Odisha has conducted 8 such meetings. The review reveals that during
financial year 2009-10 up to August 2009 i.e form 1/4/2009 to 31/8/2009,
Banks in Odisha sanctioned Rs. 1021 crores of working capital under MSME
sector and registered 12729 number of MSME accounts, in both new and
existing units.
● With respect to coverage under CGTMSE (Credit Guarantee Fund Trust
Scheme for Micro & Small Enterprises), in Odisha, up to March 2009, 9534
loan proposals have been approved involving Rs. 194.08 crores cumulatively.
It is worthwhile to mention that 2621 proposals have been approved involving
Rs. 100.87 crores during 2009-10 i.e. from 1.4.09 to 30.9.09. The
achievement under coverage of CGTMSE is really commendable.
● Since the subsidy off-take under CLCSS (Credit Linked Capital Subsidy
Scheme) is very low in the State of Odisha, Banks have to finance more and
more to MSE (Micro & Small Enterprises) units and take coverage under
CLCSS, so that eligible entrepreneurs get benefits out of the scheme.
● BCSBI (Banking Codes and Standards Board of India) code applicable to
MSE entrepreneurs should percolate to all MSE entrepreneurs and Banks.
● Banks in Odisha should continue to treat agriculture, MSME (Micro and
Small Enterprises), IT, Govt. sponsored schemes such as, PMEGP & SGSY
and Women Self Help Groups as thrust areas and endeavor to go all-out to
reach the budget in order to strengthen the economy of the State.
● Odisha is predominantly an agrarian State with the agriculture contributing
about 26 percent to the net State domestic product (at 1999-2000 prices).
It also provides employment to about 65 percent of the total working force.
It is not that in agricultural yield front Odisha lags behind only in rice. The
yield of pulses and oilseeds in the State is still dismal. The yield rate of
pulses in Odisha was 70 per cent and an oilseed was 56 per cent of that of

6. the all India averages in 2005-06. Keeping in mind the stagnant crop
production over the years and taking into account the suggestions of
Planning Commission, a road map of 9 per cent growth for economy as a
whole, and agriculture growth target of 4 per cent per annum, the flow of
credit to agriculture sector should be enhanced.
● Farmer’s Club are almost non functional in the State. As these Clubs play
vital role in creating awareness among farmers, it is required to revitalize
them. I request NABARD to initiate necessary steps not only to revitalize
the existing Clubs but also to form as many new Clubs as possible, of course,
with the help of the Banks.
● NABARD has designed a number of schemes to improve economic viability of
agricultural projects and ensure that farmers earn a minimum net income.
Banks should take advantage of the schemes formulated by NABARD.
● There is enough scope for food processing industries in the State and
financial institutions including Banks should come forward to provide
adequate credit support for the purpose.
● He was informed that a sub committee of SLBC has been constituted under
the Chairmanship of Commissioner cum Secretary, Agriculture and Food
Production, Govt. of Odisha for enhancing credit flow to agriculture sector
to boost the agricultural productivity of the State. This is a healthy step in
right direction and I am confident that the sub committee will help and
guide the banks to reach their goal.
● As most of the farmer population in Odisha belongs to small, marginal and
landless laborers, it will be essential for the Banks to finance those farmers
on group basis either in JLG (Joint Liability Group) or Tenant Farmer
Groups.

7. ● The performance of Banks under ACP 2009-10 as on 30/9/2009 is 87 per
cent of half yearly target needs improvement. He appealed to all Banks to
achieve the target set for 2009-10 which will boost the economy of the
State.
● Inspite of economic slowdown, on Y O Y basis the deposit of commercial
banks have grown by 27.25 per cent and advances by 19.40 per cent.
Sluggishness in flow of credit is because of poor demand due to global
meltdown.
● The overall CD ratio stands at 64.12 per cent against the national parameter
of 60 percent. The priority sector advance of commercial banks to total
advance is 60.65 percent as against National Parameter of 40%. So the
Bankers and the Government line Department deserve appreciation for this.
● SGSY (Swarnajayanti Gram Swarojgar Yojana) Scheme aims at establishing a
large number of micro enterprises for individuals or Self Help Groups in
order to bring every assisted family above the poverty line. It was noticed
that performance of Banks in implementing SGSY is not satisfactory during
the year 2009-10. Banks are requested to achieve the target set to them
for the financial year 2009-10.
● The SJSRY (Swarna Jayanti Sahari Rojgar Yojana) scheme is an urban
poverty alleviation programme being monitored by Ministry of Urban &
Housing Department, Govt. of India along with the Urban & Housing
Department of the State. The performance of Banks needs improvement in
implementation of the scheme.
● The SHG movement in Orissa under Mission Shakti has become almost
synonymous with economic empowerment of Women. SHG Bank linkage has
been growing at rapid pace and undergoing many changes. As of

8. 30/09/2009, Banks in Odisha have credit linked more than 4 lakh groups
involving Rs. 1452 crores.
● The credit flow to SC/ST sector is to be enhanced. The SC/ST population to
the State to total population is around 16.02 and 22.21 percent respectively
as per 2001 census. Banks have to finance more and more to the
beneficiaries sponsored under OSCSTDFCC Ltd. (Odisha Schedule Caste
Schedule Tribe Development Financial Cooperative Corporation Ltd). I would
like to inform the House that the last date of financing to the beneficiaries
of Rehabilitation of Manual Scavengers has been extended to 28th February
2010 and Banks have to finance the remaining cases sponsored to the banks
as early as possible before the stipulated date.
● India lives in villages and he, quoted the writing of Mahatma Gandhi, the
Father of the Nation –
● “The village should develop such a high degree of skill that articles prepared
by them would command a ready market outside. When our villages are fully
developed, there will be no dearth in them of men with high degree of skill
and artistic skill. There will be poets, artists, architects, linguists and
research workers from villages. In short, there will be nothing in life worth
having which will not be had in the village. Today the villages are dung heaps.
Tomorrow, they will be like Gardens of Eden, where highly intelligent folk
will dwell, whom no one can deceive or exploit.”
● Rural credit has got highest importance and there is enough of opportunities
of the Banks in financing in Rural Area as because it is politically powerful
and economically viable.
● Bhubaneswar has become the educational hob. There are good numbers of
Engineering Colleges set up at Bhubaneswar to provide technical education in

9. different faculties. In Odisha there are more than 85 Engineering Colleges
established at different places and our State produces about 18,000
Engineering Graduates per year.
● Once Pandit Jawaharlal Nehru, the 1st Prime Minister of India said “For
growth our country needs a scientific temper ….. only Science, education and
the pursuit of knowledge can help our problems of poverty, of superstition,
our vast resources running to waste, of a rich country inhabited by poor
people, by enabling a renewed, re-energized education sector, we have the
potential to transform our country into a true knowledge power and realize a
future of prosperity and growth.”
● He appealed the bankers present to sanction Education Loan to the poor
need students for pursuing their higher study.
● For policy makers, planner, Financial Inclusion has emerged as a top priority.
In Odisha only 13 districts have achieved 100 percent Financial Inclusion.
Although the improvement in achievement of Financial Inclusion has been
noticed but the progress is not good. I appeal the LDMs those who have not
achieved the 100 percent Financial Inclusion should achieve by December
2009 which we have committed. You are quite aware that lot of emphasis is
being given to the concept of Financial Inclusion by the Reserve Bank of
India and the Govt. of India. Having an account with the Bank may be the
beginning of Financial Inclusion. It is not an end in itself. It is a means to
an end. Financial Inclusion will reach its ultimate end, when the deprived
section inculcate saving habit, generate income by availing Bank credit and
improved their life style.

10. ● Financial Inclusion is still in its infant stage. There is a long way to go.
Action initiated so far is only small steps for a long journey to make for
total financial inclusion.
Inclusive growth happens when everyone participates in the economy.
In this context, MD. YUNUS, the Nobel laureate says –
“If we are looking for one single action, which enable the poor to overcome
poverty, I would go for credit. Money is power”.
He was quite hopeful that meaningful discussion will take place in the SLBC
meeting. Banks and Govt. line Departments will strive hard to fulfill the needs of
the people in the lower strata of the society.
I want to quote the saying of John F. Kennedy –
“Our privileges can be no greater than our obligations. The protection of our
rights can endure no longer than the performances of our responsibilities”.
All have to change their mindsets at all level to help the vulnerable sections of the
society and then only, the dreams of Mahatma Gandhi, the Father of our Nation
can be fulfilled.
He assured the House that Bankers will continue to work hand in hand with their
counterparts in the Government to ensure economic growth and development of the
State. He was confident that their joint effort will result in converting Odisha
into a developed State and bring back its pristine glory.
HIGHLIGHTS OF THE SPEECH OF SHRI R. N. SENAPATI. IAS AGRICULTURE
PRODUCTION COMMISSIONER, GOVT. OF ORISSA.
While telling about the large no of pending applications sponsored to the banks
under various Govt. sponsored schemes which includes SME applications sponsored
by DIC and Pisciculture applications sponsored by FFDA(Fish Farmers Development
Agencies) and decline of C.D ratio of the Bank he, observed as follows;

11. ● Some issues are being discussed continuously in every SLBC meetings and he
felt that such issues should be sorted out quickly so that faster progress
can be achieved.
● One of the indicators to judge the performance of the banks is C D ratio. It
is noticed that it is declining which is matter of concern for all, the reason
put forth is due to Global recession and C.D ratio is affected. Have the
credit need of all is fulfilled? Have the Banks cleared all the pending
applications? Banks have to expedite sanction and disbursement of all the
pending applications quickly so that C.D ratio of the banks must improve.
● He stated that the state is progressing very fast in recent years & bankers
have a very important role to play.
● While giving importance in increasing credit flow to agriculture, he
expressed that growth and development will not really be complete unless
credit flow to this sector is not increased. As it is an agrarian economy as
said by Executive Director, UCO Bank, perceptive growth will not be possible
unless the growth occurs in this sector.
● During the Kharif season due to deficient rainfall, Kharif crop was affected
in some parts of the state. He requested the bankers to finance the farmers
with sincerity in time. There should not be any complain from any farmers.
Bankers have to fulfill the need of the farmers.
● RRBs position is strengthened by contribution from Govt. of India, State
Govt and he expected a much larger role to be played by them, otherwise,
recapitalization done will not be useful.
● He expressed that, the task of completion of financial Inclusion in the state
is very very important. The districts which has not yet achieved 100%
Financial Inclusion has to be completed in time. Every citizen should have
access to banking networks. SBI has already taken steps. He requested

12. other banks also to be involved, so that the transactions become smooth and
transparent.
● Banks have to actively involve in implementation of all Govt. Sponsored
programme. Although, there is coordination at state level, but there is no
coordination at District and Block level. He expected that even at Block
level, banks should have close coordination between block functionaries even
with rural local bodies. Banks and Govt. Department should work jointly to
achieve the desired results.
HIGH LIGHTS OF SPEECH OF SHRI J. K. MOHAPATRA, IAS, PRINCIPAL
SECRETARY TO GOVT. FINANCE DEPARTMENT,GOVT. OF ORISSA.
While expressing happiness in coming back to SLBC forum after 1990 Shri
Mohapatra noticed as follows;
● There is a larger agenda of SLBC to be discussed in a limited time, hence
smaller forum should be there to take care of issues related to SLBC.
● Declining of C. D ratio is not due to reason of recession, as a matter of fact,
regional variation is noticeable in district level and in many districts in the
state are having significantly low C. D ratio. Major public sector and private
sector banks are also having low ratio, if those things be taken care , ratio
will be higher and healthy. Although the ratio is healthy due to performance
of Co-operative Bank and Stronger RRB.
● Banks operating the state should come forward proactively in
disbursement of credit. The state Govt. must have to play a proactive
role for the purpose. We have to strengthen our mechanism to achieve
the desired goal. Banks are assured of recovery, if good proposals are
scouted, sanctioned and disbursed.
For developing the state, two things are required.

13. i. State agencies are to be very very proactive, they should have
maintained perfect coordination and rapport with local bank
officials by visiting the bank branches frequently involving in
the process of implementation of Govt. sponsored schemes.
ii. Institutional support to the bank by the Govt. where ever
required, for lending credit and for getting their dues back.
● Typically, in southern half of the country, C. D. ratio of the banks is
found to be high, vibrant banking activities is noticed. Credit
Worthiness is there in the area.
Finally, he said that, Govt. sponsored is to be successfully implemented by
the banks and Govt. line department targeting the poor people who is highly
credit worthy.
HIGHLIGHTS OF SPEECH OF SHRI KAZA SUDHAKAR, REGIONAL
DIRECTOR, RESERVE BANK OF INDIA, REGIONAL OFFICE,
BHUBANESWAR.
While telling about poor performances of the banks in implementing SGSY
during 2009-2010, and DRI lending, he observed as follows;
● Achievement of banks in SGSY scheme upto September 2009
is only 5.47% which is very very low. The performance of the
banks in DRI lending is not at all satisfactory. In 2006, it was
0.15 % which has come down to 0.12% as of September, 2009.
DRI advance is meant for poorest of the poor. He advised
zonal heads/ regional heads to review the targets act to
achieve targets which are 1% of the previous year Balance
Outstanding of Advance port folio.
● He laid importance on IT Enabled financial Inclusion for
payment of social security pensions and NREGS payment to

14. the beneficiaries. In this context, Govt. of Orissa has reached
one MOU with SBI for EBT (Electronic Benefit Transfer). The
scheme is doing well in Andhra Pradesh; it will do so in Orissa,
Money go to the account of the beneficiary.
● He expressed that, DCC meetings has not been conducted in
time. LDMs have to ensure that districts like BOUDH,
KALAHANDI, NUAPADA, MAYURBHANJA, KEONJHAR,
BALESORE be held in time.
● In Orissa, 100% Financial Inclusion is achieved in 13
districts, Banks takes a pride of it, but while enquiring in the
villages, there are still people left to have bank accounts. The
gap noticed in implementing Financial Inclusion is to be filled
up.
● He said that, Governor, RBI is visiting Jalanga village in
Bhadrakh Districts on 3rd December 2009 in an outreach
programme as a part of RBI’s Platinum Jubilee Celebration. He
requested the bankers to be present and open a stall to
display theirs products to have greater Financial Inclusion and
for rural development. Basically, RBI will meet the Farmers
and SHG’s.
● Now, in Orissa there are 8 RSETI,s set up in 8 districts.
There is a target to set up RSETI in all 30 Districts in the
state. The banks which has been asked to set up RSETI’s in
the districts assigned to them should open quickly, so that in
each districts one RSETI will be functioning.
● In out reach programme in Dhenkanal Districts, RBI was
informed that there is no cold storage in the districts, hence

15. LDM was requested to keep it as an fresh issue in next DCC
meeting and take steps to set up cold storage through bank
finance.
● It is observed that, most of the banks are having low C.D
ratio, licenses are to be sought from RBI for opening of
branches in urban area, those banks will not be permitted to
open branches in urban area. Banks having better C. D ratio
will be allowed to open branches in urban area.
Lastly, he advised the banks to take all possible steps to increase their
C. D ratio; to bridge the gap of regional imbalance. There should be a
better coordination between the bank officials and officials of state
government and other developmental agencies for the economic
development of the state.
HIGHLIGHTS OF SPEECH OF SHRI C. R. PATTNAIK,CHIEF
GENERAL MANAGER, NABARD, REGINAL OFFICE,
BHUBANESWAR.
While recalling decision of enhancing credit flow to of credit in the last
State Credit Seminar to Rs.11500 Crores during 2009-2010, he observed
as follows;
● After implementation of scheme of Agriculture Debt
Waiver & Debt Relief 2008 of Govt. of India, there is a
enough of scope of lending to Farmers in the state of
Orissa, hence, the ACP (Annual Credit Plan) target for
the year was envisaged of Rs. 11500 Crores for current
financial year, which was low in comparison to Andhra
Pradesh. That was thought to be a good beginning.

16. ● As a matter of fact, a large number of people are
eligible to take fresh advance after implementation of
Debt Waiver Scheme, 2008 of Govt. of India. Reviews
revealed that, banks in Orissa are yet to achieve the
projections in a sizeable manner.
● He requested the bankers to take a challenge to
achieve credit package of exceeding Rs.11500 Crores in
the current year, so that the state will get a boost.
Credit is a critical input for development of our
agriculture.
● Commercial Banks have started Agriculture term loan by
way of investment credit, they have to finance
farmers/ beneficiaries for storage of agricultural
produces as there is lack of storage facilities in the
state.
● Reiterating the speech of Executive Director, UCO
Bank for formation of Farmer Club , in the state, he
told that all bank branches located in semi- urban and
rural area should focus their attentions for formation
of Farmers Club. He expressed that, NABARD is trying
to establish 2000 Farmers Club during the current year
in different districts.NABARD’s ultimate aim is to
establish one Farmers Club in every village in our in the
state. Farmers Club will be the focal point for all Agri
related activities.
● He concluded that Financial Inclusions does not mean
that banks will only restrict to opening of accounts only

17. that will not serve the desired goal, they should have
access to bank through credit, remittances, and
insurance products.
Agenda Item No.1-
The proceedings of the 118th SLBC meeting held on 04-09-2009 at Bhubaneswar
was taken as confirmed.
Agenda Item No.2 -
1. The credit flow to MSME sector must be enhanced by the Banks. The
pending applications under SME sponsored by DIC to various Banks are to be
disposed off at the earliest.
Action: Banks/ Industries dept. Govt. of Orissa/Directorate of
Textiles & Handloom
2. The Banks should finance more and more under MSME sector and take
coverage under credit guarantee fund trust scheme for micro & small
enterprises which help the entrepreneur to avail collateral free loan up to
Rs. 100 lakhs which includes PMEGP also. It was noticed that average loan
size covered under the scheme in Orissa is only Rs. 2.42 lakhs which is less
than all India average of rs. 3.54 lakhs.
Action : Banks/SIDBI/KVIC/KVIB/Industries Dept. Govt. of Orissa.
3. The Banks which have not yet established EDP Institute were advised to
open Institute without further loss of time. As advised by Ministry of Rural
Development, Govt. of India Govt. of Orissa was requested to allot the land
free of cost to those Banks which will open RUDSETI in the District.Banks
which have been assigned with opening of RSETI’s should open with out
further delay.
Action :Banks/PR Dept. Govt. of Orissa/NABARD.
4. In Orissa 13 districts i.e. Cuttack, Ganjam, Puri, Retagged, Nayagarh,
Keonjhar, Kendrapara, Angul, Balasore, Kandhamal, Sambalpur, Mayurbhanja,
& Dhenkanal have achieved 100% financial inclusions. Other Districts i.e.
Koraput, Kalahandi, Nuapada,Bargarh, Jharsuguda,Jagatsingpur,Bhadrak,&
Gajpati have to achieve 100% financial inclusion by December.2009 without
fail. Financial inclusion of all thirty Districts should be completed by March
2010. The programme of financial inclusion of the Nabarangpur, Malkangiri,
and Bolangir & Jajpur district is not satisfactory. LDMs of these districts
are advised to take all possible steps for completion of financial inclusion
within stipulated time i.e. latest by DECEMBER,2009. By opening of No-frill

18. a/c it is not sufficient, those excluded people have to be given credit for
doing some economic activities, bankers are advised to issue GCC (General
purpose credit card) or any other finance for taking up economic activities
for generation of income.
Action : Banks/Govt. line Dept.
5. The services of the certificate officer posted in special certificate court i.e
Cuttack, Bhubaneswar, Berhampur, Sambalpur & Rourkela should be
effectively utilized for functioning of the court. Banks were requested to
file as many number of certificate cases in the special certificate court and
should have effective liaison with certificate officers for recovery of dues.
Certificate cases pending with special certificate court to be disposed of in
time. Action : Banks/Revenue Dept. Govt. of Orissa .
6. All LDMs have to submit the district wise information to Mission Shakti
Dept. as well as to SLBC as of 30.09.09. Except Rayagada Sonepur, Puri
Bolangir, Nuapada, Gajapati, Dhenkanal& Angul, all LDMs have to submit the
District wise information on WSHG to Mission Shakti Dept. as well as to
SLBC on monthly basis. The reconciliation of district wise data with the
SLBC data on financing to WSHG has been a long standing issue which is to
be resolved without further delay. Action: LDMs/Banks.
7. 07. Transparency in the operation of MFIs & the area of operation are to be
determined. The lending institution/Banks have to share the details of
information of financing to MFIs on lending to SHGs/WSHG/JLGs for
monitoring their activities. Lending institutions which have financed MFIs
must have to monitor about financing of MFIs for on lending to
SHGs/WSHG/ JLGs. Action : Banks
8. 08. The banks are advised to achieve the target set to them under self
employment mission for the year 2009-10. It may be noted that state govt.
has been giving maximum importance on state employment mission.
Action: Banks
9. Regarding registration equitable mortgage i.e. mortgage of deposit of title
deeds to prevent fraudulent transaction with minimum charges, the matter
is under consideration of Govt. of Orissa.
Action : Revenue Dept. Govt. of Orissa/Finance Dept. Govt. of Orissa.
10. For stamped duty of reconveyances of waiver of charges under section 4(i)
of the OACOMP (Banks) Act 1995 on landed properties, Revenue Dept. Govt.
of Orissa was kindly be requested to examine the matter.
Action: Revenue Dept. Govt. of Orissa

19. 11. Recommendation of working group of K.C. Chakraborty committee on
rehabilitation of sick micro & small enterprises are to be followed by all
concerned including Banks. The progress in implementation of the scheme
will be reviewed in SLBC meeting to be held on quarterly basis.
Action: RBI/Industries Dept. Govt. of Orissa/Banks
AGENDA ITEM NO.3
FRESH ISSUES
A. Issue raised by Panchayatiraj Dept.Govt. of Orissa
Banks were requested to gear up their machineries to achieve physical as well
as credit mobilization target for the year 2009-10. Banks have to achieve the
national target of credit subsidy ratio to 3:1.
Action: Banks/ Govt. line Dept.
B. Issue raised by the Director of Industries, Orissa, Cuttack
Banks have to achieve the PMEGP target set to them for the financial year
2009-10. KVIC/KVIB/DICs have to ensure that applications under PMEGP for
the year 2009-10 have to be sponsored in time. Margin Money claims have been
settled for 567cases out of 870 disbursed cases under PMEGP for the year
2008-09 by30/06/2009. Out of Rs. 451.64 lakhs utilized money at the
beginning of July 2009, it was decided that Rs.424.64 lakhs will be utilized for
settlement of claims of remaining 303 disbursed cases. It was decided for
release of margin money for remaining 3030 undisturbed cases of 2008-09.
As per guidelines, Nodal Branches of each bank has to furnish the Utilisation
Certificate on Margin Money to Directorate of Industries for compilation and
onward transmission. Also one set of Margin Money claim format has to be sent
Directorate of Industries for record. It was also decided that the
representatives of Industries Association may be invited to District Level
Bankers’ Committee. Banks were advised not to insist on collateral security in
contravention to RBI guidelines.
Action: Banks /KVIC/LDMs
C. Issue raised by Directorate of Textiles, Orissa Finance for
construction of Work-shed
Banks have to finance balance amount for construction of work-shed under Special
Package under the State Plan. As per the Special Package of Hon’ble Chief
Minister, Orissa during the year 2007-08, 400 weaver beneficiaries have been
provided @ Rs.25000/- to construct their work-shed with own contribution @
Rs.12000/-. The applications for construction of Shed should be included in the

20. Scheme which will generate income for the entrepreneurs out of the activities for
paying back the loan installment.
Financing to weavers trained under Self- Employment Programme Training.
During the year 2006-07& 2007-08,310 &997 weaver beneficiaries have been
trained respectively under the skill up-gradation training under SEP in Jacquard
Weaving, Jalla & Dobby Weaving, Tie & dye & dyeing. During the training, the
training under jacquard weaving have been supplied with looms and accessories and
under jalla dobby weaving only accessories has been supplied. As the beneficiaries
are facing shortage of working capital for continuous production of fabrics, Banks
were advised to take steps for sanction of loan to the said weaver
beneficiaries on priority basis as per recommendation of zonal officers DDTs/
ADTs.
Bank Linkage to weaver Self Help Groups WSHGs inIHDSs Clusters:
Currently, 23 Clusters Integrated Handloom Development Scheme (IHDS)
Programme implementation is going on and different developmental works are
taking place with financial assistance of both central & state Govt. with
participation of implementing agency on payment of their share. So far, Govt. of
India & Govt. of Orissa have released Rs. 335.05 lakhs and Rs. 29.70 lakh
respectively. 148 number of Handloom Self Help Group have been formed in the
above stated IHDS cluster (as per page no. 11 of 119 th SLBC Agenda Book.) Due to
lack of linkages with financing Banks operational achievements of Self Help Groups
ARE NOT satisfactory. The banks in the respective locality were advised to
extend loan to SHGs to meet the Working capital requirement enabling the
weavers to get regular work & employments
Action: Banks/ Textile Department, Govt. of Orissa.
D. Issue raised by the Orissa Sch. Caste & Sch. Tribe Development Finance
Cooperative Corporation Limited.
● The last date of disbursement under the Scheme of Rehabilitation of
Manual Scavengers has been extended upto 28.02.2010. Banks are
requested to complete the disbursement within the schedule date.
(Please treat the matter as very, very important.).
● Target set for Banks for financing SC Self Help Groups, ST Self Help
Groups and individual SC/ ST has to be achieved by the banks operating in
the state. The achievement of the banks is not at all satisfactory. Banks and

21. SC/ ST Department should take proactive steps for achievement of the
target in SC/ST Sector.
● As a matter of facts, most of the Rickshaw Pullers are pulling Rickshaw on
hire basis. They have not their own Rickshaw. It was decided that , OSFDC
may fix specific target for each Urban Local Body and Rural areas for supply
of Rickshaw on loan- cum- subsidy basis. OSFDC will pay subsidy @50% of
unit cost subject to maximum of Rs. 10000/- per beneficiary and the balance
50% will be provided by financing banks as loan. Rickshaw loan to Scheduled
Castes and Scheduled Tribe under OSFDC Scheme was approved in SLBC
meeting to supply of Rickshaw loan during 2009-2010 in urban and rural
areas, so that OSFDC may issue advertisement and collect loan applications
from beneficiaries and send the applications to banks for sanction of loan.
Action: Banks/ SC/ST Department, Govt. of Orissa
● Under OSFDC, towards subsidy for Income Generating Schemes, the debit-
cum-Utilization Certificates are not submitted to Govt. of India. Banks are
requested to submit the Debit-cum-Utilization Certificates for onward
transmission to Govt. of India as pointed by OSFDC.
Action: Banks/SC/ST Department, Govt. of Orissa.
A. Issue raised by Director of Agriculture & Food Production Orissa,
Bhubaneswar.
The approved rates of agricultural machinery/implements/equipments have
been communicated by the Directorate memo No. 2355 dated 14.7.09 to the
Convenor, SLBC. The farm machineries include the high value ones like tractor,
power tiller etc. Banks should be proactive in disbursement of loan for the
implements particularly power tiller looking in to the small and marginal land
holding of the Orissa farmers. In no case the Bank sanction amount shall
exceed the approved rate of a particular implement with the terms and
condition reflected should be maintained by the supplier. Banks should relax
financing norms like minimum land requirement and land mortgage. Essential
power tiller driven implements like Axial flow thresher, water pump, trailers
should be included in the loan proposal for better financial viability for which
Govt. of India is pressing hard.
Action:-Banks/ Agriculture Department, Govt. of Orissa.
G. Issue raised by Director of Fisheries, Orissa, Cuttack.
● Banks have to extend liberal short term credit to Farmers and
entrepreneurs. All district level officers have been advised to sponser
adequate number of proposals for the purpose. It was informed that 389

22. proposals having water spread area 466.84 ha amounting to Rs. 192.99 lakhs
have been pending with different banks are to sanctioned and disbursed.
● Bankers were requested to clear up the pending proposals sponsored for
excavation/ renovation of ponds to assist the fish farmers to develop their
tanks during the financial year.
● It was decided that, one-stop Aqua shop should be promoted in every block
for facilitating availability of inputs for pisciculture and extending technical
support to the fish Farmers. Bankers were requested to extend finance and
APICOL was requested to provide subsidy for the purpose.
Action:- Banks/ Fisheries Department, Govt. of Orissa.
A. Issue raised by NHB, Bhubaneswar
As per the approved norms of the NHB, the project has to be completed within
2 years from the date of sanction of term loan and subsidy should be claimed
immediately after successfully implementation of the Project. Bankers were
requested to overview the successful implementation of the project and final
claim of the subsidy. The details of the advance subsidy pending in the
different banks waiting for final claim of subsidy is given in page no15 of 118TH
SLBC agenda book and Bankers were requested to submit final claim of subsidy
as mentioned therein.
Action:-Banks/ NHB
I Issue raised by Khadi & Village Industries Commission, Ministry of
MSME (Govt. of India) State Office, Bhubaneswar.
● PMRY and REGP have been merged with effect from April, 2008 and PMEGP
has been introduced in its place. PMEGP is the flagship programme of the
Govt. of India having ample scope for employment opportunities and
increasing the credit flow to MSME Sector to boost the economy. Hence, all
Banks have to take proactive approach in financing PMEGP for the current
financial year 2009-10. The cases pending with the Banks for the year
2008-09 may be financed after consultation with GM, DIC/ KVIC/KVIB, the
sponsoring agencies of PMEGP as applicable as per the norm. The duration
for submission of Margin Money claim by the beneficiary till release of
Subsidy by the Nodal Bank from the date of disbursement of the 1 st
Installment of the loan has been reduced by KVIC from 60 days to 30 days.

23. The Institutions aided by KVIC/KVIB having Interest Subsidy Illegible
Certificate (ISEC) can avail loans from the Banks at the rate of 4% interest
and rest of the interest charged by the Banks will be reimbursed by
KVIC/KVIB as interest subsidy. Banks are advised to expedite the sanction
through the above scheme for development of KVIC in Orissa.
Action:-Banks/KVIB/KVIC/Industries Department, Govt. of Orissa.
I. Issue raised by Reserve Bank of India, Bhubaneswar.
Direct transfer of security pension into the bank accounts of beneficiaries.
The Govt. of India has set up a group under the chairmanship of Secretary,
Rural Development, Government of India to examine the feasibility of direct
transfer of social security pension in to the Bank/Post Office accounts of the
beneficiaries. The committee has pointed out the delay in transferring funds
by the nodal bank to disbursing branches of the banks causing delay in payment
to the beneficiaries. In order to ensure the timely credit of amount to the
accounts of beneficiaries it has suggested a system to be introduced to credit
the amount on scheduled date so that the beneficiary is free to withdraw the
amount any day it likes. This is for the information of all concerned.
All Scheduled Commercial Banks were requested to sanction and disburse DRI
advances minimum to the extent of 1% of Bank’s total advance as at the end of
the previous year. Banks have to give thrust in financing DRI beneficiaries.
Actions:-Banks.
A. Issue raised by LDM, Nabrangpur.
Relaxation of Service Area Norms for Govt. Sponsored Schemes of SHGs-
Banks have been financing SHGs outside the Service Area. Whenever credit
linked to SHGs under SGSY Schemes comes, then applications were returned by
the financing Banks as it is located outside the Service Area. This is to inform you
that SERVICE AREA CONCEPT has been dispensed with except for the
implementation of the Govt. Sponsored Schemes. Since the financing Banks were
not able to finance to those groups under SGSY, RBI is requested to kindly take up
the issue with the appropriate authority for resolvement of the issue including
financing crop loan to the number of defaulter SHGs.
Action:-RBI
L. Issue raised by LDM, Dhenkanal.
In response to issue raised by LDM, Dhenkanal, it was resolved that Private Sector
Bank can participate in implementation of PMEGP and other Govt. sponsored
schemes.
Action:- Pvt. Sector Banks/KVIC/KVIB/Govt. Line Department.
M. Issue raised by UCO Bank.

24. Prime Minister’s New 15 Points Programme for Welfare of Minorities:-
●As per the Prime Minister’s New 15 Points programme for welfare of
minorities, targets have been allocated amongst Public Sector Banks for the
financial year 2009-10 (Page No. 74) of Agenda Book. Banks were requested to
achieve the target set to them for financing Minorities Community.
Reverse Mortgage Scheme (RML)
●It was advised by Govt. of India, Ministry of Finance, Department of Financial
Services, New Delhi to make the Reverse Mortgage Loan (RML) more effective
and popular, the performance of Banks in financing under RML will be reviewed
in SLBC Meeting held on quarterly basis. All Banks are requested to finance
under RML on priority. The member banks may also be requested to undertake
awareness building programme in consultation with National Housing Bank
(NHB).
Special Housing Loan on account of Flood.
● As a matter of fact, large number of accounts of Special Housing Loan,
sanctioned on account of flood occurred in Orissa for construction and
repairing of house turned NPA which affects the recycling of funds for
lending further also affect profitability of the Banks to a great extent.
Hence, it was decided that Banks have to list out the names of the DDOs
(Drawing and Disbursing Officer) of the various Govt. Depts. who are not
deducting the Installments for remitting to the Bank branches for crediting
to the Loan Account and name of the DDOs is to be furnished to DIF,
Finance Department, Govt. of Orissa, so that Government may take up with
the appropriate authorities.
Action: All Banks/DIF
AGENDA ITEM NO. 4
Banking Key Indicator of Orissa as on 31.03.09

25. The banks have to increase the CD ratio which is showing declining trend as
compared to the previous year. The public sector banks like Canara bank, United
Bank of India, Central Bank of India, Corporation Bank, Punjab National Bank,
Punjab & Sind Bank, Syndicate Bank, State Bank Of Travancore, Vijaya Bank and
some Private sector Banks like Axis Bank, Rajasthan Bank Ltd., Vyasa Bank, The
South Indian Bank ltd., , Karur Vyasa Bank, Laxmi Vilas Bank ltd. Were having
low CD ratio which is to be improved in coming days. Except Indian Overseas Bank,
none of the banks have achieved national parameter under DRI i.e. 1% of total
outstanding advance of previous Year. Rest of banks has to achieve the target of
National parameter under DRI. The CD ratios of the districts have to be improved.
LDMs of Deogarh Gajpati, Jagatsingpur, Kandhamal, Kendrapara, Malkangiri,
Nuapada, Rayagada and Sambalpur should take all possible steps to improve their
CD ratio.
Action : Banks mentioned above / All Banks/ LDMs of Deogarh, Gajpati,
Jagatsingpur, Kandhamal, Kendrapara, Malkangiri, Nuapada, Rayagada
and Sambalpur
AGENDA ITEM NO. 5
RECOVERY
The overall recovery position as of 30/09/2009 is not satisfactory, i.e.59.60%.The
percentage of recovery of IRDP/SGSY/ PMRY AS OF 30/09/2009 were 46.68
and18.33 % respectively needs improvement.Govt.machineries were requested to
render adequate help and assistance in organizing recovery camps to improve the
performance of recovery for better recycling of funds. Low recovery stands as a
barrier for credit growth in the state.
Action:-Banks/ Govt. Line Department.
AGENDA ITEM NO.6
Review of performance under Annual Credit Plan.
The performance of the Banks under ACP 2009-10 upto September 09 is 87%. The
Performance of Banks as a whole under Crop LOAN Sector being is not
satisfactory. The performance of Boudh, Dhenkanal, Ganjam, Kalahandi, needs
improvement. The LDMs should take proactive steps in close coordination with

26. officials of Govt. line Departments and bank officials to improve the performance
of the districts. Under ACP-2009-10.
Action:-Banks/ LDMs/Govt. line Department.
AGENDA ITEM NO. 7
Progress under Women Self Help Groups (Mission Shakti).
● Banks operating in the state allotted with the target of financing WSHG
during 2009-10 have to achieve the target and should give top priority in
financing WSHG for improvement of women as our social objectives.
● LDMs have to submit the monthly data on WSHG bank wise of their district
to Mission Shakti Dept., Govt. of Orissa as well as to SLBC by 10th of the
succeeding month. ( Very very important)
● MFIs operating the state have been financing WSHGs in large numbers
which are to be monitored by the financing banks.
● Banks which have financed MFIs Must share their information to SLBC as
well as to Mission Shakti Dept., Govt. of Orissa.
Action : Banks/ LDMs/ Govt line dept.
AGENDA ITEM NO. 8
Review of performance under PMEGP and SGSY
been allocated under PMEGP for the year 2009-10. All Banks in Orissa should
take proactive steps to achieve 100% target during the financial year 2009-10.
SGSY. All Banks and Govt. line Dept. should work together to increase subsidy
credit ratio and per capita investment under SGSY.
Action : Banks /Govt. line Dept.
AGENDA ITEM NO. 9
Credit Flow to Handloom & Handicraft Sector
In order to enhance the credit flow to Handloom & Handicraft sector, Banks have
to extend hassle free loan to Handloom Weavers on priority. Banks should take
proactive steps to issue ACCS to Handloom Weavers. Hanks have to finance SHGs
promoted by Department of Directorate of Handicraft and Village & Cottage
Industries, Orissa.

27. Action : Banks/Govt. Line Department.
AGENDA ITEM NO. 10
Progress under SJSRY
Banks are requested to implement the scheme with all sincerity and commitment to
uplift the Urban poor above the poverty line and target set for 2009-10 under
SJSRY has to be achieved.
Action : All Banks/LDMs.
AGENDA ITEM NO. 11
The performance of banks under SC/ST/Scavengers/ITDA.
The applications sponsored by OSCSTDFCC Ltd./OSFDC under
SC/ST/Scavengers/ITDA should be financed with utmost sincerity as an objective
of increasing credit flow to women as well as SC/ST sector.
Action: All Banks/Govt. line Department.
AGENDA ITEM NO. 12
Performance under KCC/SCC/ACC
The Commercial Banks have to issue KCC to all eligible farmers. Banks were
requested to take all possible measures to achieve the targets under
ACC/SCC/KCC for the year 2009-10.
Action : Banks/LDMs
AGENDA ITEM NO. 13
Performance under Pisciculture

28. All the pending eligible proposals under Pisciculture should be sanctioned and
disbursed on priorities. Banks should sanction short term credit just like crop loan
in agriculture to fish farmers to increase the production in the State.
Action : Banks/Govt. line Departments.
AGENDA ITEM NO. 14
National Housing Loan, Home Loan, Rural Housing Finance, Finance to Ex-
servicemen, Finance to Minority Community.
Banks have to improve their performance and correct reporting should be made by
the Banks in respect of National Housing Loan, Home Loan, Rural Housing Finance,
Finance to Ex-servicemen and finance to Minority Community.
Action : All Banks.
AGENDA ITEM NO. 15
Education Loan
Banks should give priority to Education Loan and finance more and more to this
sector.
Action : All Banks.
AGENDA ITEM NO. 16
Progress under National Horticulture Board
Banks should give emphasis to provide more and more credit under this sector.
Action : All Banks/NHB
AGENDA ITEM NO. 17
Financial Inclusion
The cent percent Financial Inclusion have to be completed as soon as possible.
Lead District Managers are requested to take all possible measures for completing
Financial Inclusion of the State.

29. Action : All LDMs.
At the end Mr. C.P. Das, Chief Officer, SLBC, UCO Bank proposed vote of thanks
to the Chair as well as participants.