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PROCEEDINGS OF 111TH SLBC MEETING
HELD ON 14.11.2007 AT BHUBANESWAR
The 111th SLBC meeting of Orissa was held on 14.11.2007 at Bhubaneswar under
the Chairmanship of Shri Pawan Kumar Bansal, Hon'ble Minister of State, Finance (E&FS),
Govt. of India. Among others, it was attended by Shri P. C. Ghadai, Hon'ble Finance
Minister, Orissa; Shri S. K. Goel, CMD, UCO Bank and Chairman, SLBC, Orissa;
Dr. R. N. Bohidar, Addl. Chief Secretary-cum-Development Commissioner, Orissa;
Shri S. P. Nanda, Agriculture Production Commissioner, Orissa; Shri R. N. Senapati,
Principal Secretary to Govt., Finance Deptt., Govt. of Orissa; Shri G. Jagan Mohan Rao,
Regional Director, RBI, Bhubaneswar; Shri K. Sudhakar, CGM, Reserve Bank of India,
Mumbai; Shri A. Bhattacharjee, Director, DRT & Development, Govt. of India;
Shri S. A. Kareem, Chief General Manager, NABARD, Regional Office, Bhubaneswar;
Shri M. N. Rao, Chief General Manager, SBI, LHO, Bhubaneswar; Shri K. S. Singhwan,
Chief General Manager, SIDBI; Shri V. K. Upadhyay, General Manager, Head Office, UCO
Bank. The list of participants is annexed.
The proceeding of the 111th SLBC meeting was started with lighting of lamps by
Hon'ble Minister of State, Finance (E&FS), Govt. of India followed by Shri Prafulla Chandra
Ghadai, Hon'ble Finance Minister, Orissa, Shri S. K. Goel, CMD, UCO Bank, Shri R. N.
Bohidar, Addl. Chief Secretary-cum- Development Commissioner Govt. of Orissa,
Shri R. N. Senapati, Principal Secretary, Finance Deptt., Govt. of Orissa & Shri G. Jagan
Mohan Rao, Regional Director, RBI, Bhubaneswar.
Shri R. K. Mukherjee, General Manager, Orissa & Convenor, SLBC welcomed,
1. Shri Pawan Kumar Bansal, Hon'ble Minister of State, Finance (E&FS), Govt. of
India;
2. Shri P.C. Ghadai, Hon'ble Finance Minister, Orissa;
3. Shri S. K. Goel, CMD, UCO Bank and Chairman, SLBC, Orissa;
4. Dr. R. N. Bohidar, Development Commissioner, Govt. of Orissa;
5. Shri S. P. Nanda, Agriculture Production Commissioner, Orissa;

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6. Shri R. N. Senapati, Principal Secretary, Finance Department, Govt. of Orissa;
7. Shri G. Jagan Mohan Rao, Regional Director, Reserve Bank of India, Bhubaneswar;
8. Shri K. Sudhakar, CGM, Reserve Bank of India, Central Office, Mumbai;
9. Shri A. Bhattacharjee, Director, DRT & Development, Govt. of India;
10. Shri S. A. Kareem, Chief General Manager, NABARD, Regional Office, Bhubaneswar;
11. Shri M. N. Rao, Chief General Manager, State Bank of India, Local Head Office,
Bhubaneswar.
12. Shri K. S. Singhwan, Chief General Manager, SIDBI;
13. Shri V. K. Upadhyay, GM, Head Office, UCO Bank.
& all dignitaries from Banks, Govt. line Departments/Agencies to the 111th SLBC meeting
of Orissa.
In his welcome address he expressed as follows :
● We are fortunate that, Sj. Pawan Kumar Bansal, Hon'ble Union Minister of State,
Finance (E&FS), Govt. of India is chairing today's SLBC meeting and the State will
be benefited from his advice in going ahead with the strategies for the
development of the State.
● Sj. Prafulla Chandra Ghadai, Hon'ble Finance Minister, Orissa has been a constant
source of inspiration and guiding force for us who has always taken keen interest in
the functioning of SLBC and is extremely devoted for the overall development of
our State.
● He introduced Shri S.K. Goel, the Chairman, SLBC, Orissa to the House and
welcomed him as this is his first visit to Orissa after joining UCO Bank as Chairman
& Managing Director. Prior to joining as CMD of UCO Bank, he was holding the
post of Executive Director in Allahabad Bank and he has a record of being one of
the best Bankers of India having expertise in various gamuts of Banking. As
Chairman of the State's SLBC, Orissa expects a lot from him for its better
performance in credit flow to the various sectors of the economy.
● Orissa is prone to natural calamities like flood and drought which affect the
economy of the State. In spite of this, the State is under progress because of the
initiatives taken up by the State Government and the State is witnessing a vibrant

3. 33
economic environment. The investment climate is very conducive for the
entrepreneurs as well as the bankers because of the initiatives taken by the State
Government.
● The CD ratio of the Banks in Orissa as of 30/6/07 is 77.27% which is satisfactory.
● Regarding WSHG, Financial Inclusion and the State Govt. has been doing a lot of
things to assist them in alleviating the difficulties of the poor.
● Lastly, he prayed Lord Jagannath, the Almighty of the world, for progress and
prosperity of the State.
After the welcome speech of Shri Mukherjee, a booklet on Financial Literacy published by
RBI was released by Shri Pawan Kumar Bansal, Hon'ble Union Minister of State for
Finance.
Then Shri Upadhyay, General Manager, UCO Bank requested Shri S. K. Goel, CMD, UCO
Bank and Chairman, SLBC to deliver his Key note address.
Key note address by Shri S. K. Goel, CMD, UCO Bank & Chairman, SLBC, Orissa.
The Chairman, UCO Bank welcomed Shri Pawan Kumar Bansal, Hon'ble Union Minister of
State, Finance (E&FS), Govt. of India., Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa
and other dignitaries and participants to the 111th SLBC meeting. In his Key note address
Shri Goel, expressed that :-
● It has been a thrilling experience for him that Hon'ble Union Minister of State,
Finance (E&FS), Shri P. K. Bansal, Govt. of India and Hon'ble Finance Minister,
Shri P. C. Ghadai, Orissa are amidst them in the 111th SLBC meeting. He was
completely overwhelmed and his happiness cannot be described in words. He once
again welcomed both of them to the meeting.
● It gives him a great pleasure to be amongst the august audience in the 111 th SLBC
meeting of Orissa. On behalf of SLBC and on his own behalf, he extended a very
warm welcome to all of them to the 111th SLBC meeting of our State.
● Today is the birthday of Pandit Jawaharlal Nehru, who was the founder of Modern
India. In fact, he brought coordination between East and West and always had not
only given importance for spirituality but also was emphasizing for Modern
Technology for the development of the Country. He was such a Politician,
Diplomat, Statesmen, whose heart was as soft as rose and he was liking children

4. 33
very much, who are the future of the Country. So throughout the country, today
i.e. the 14th November is being celebrated as Children's Day. Today's Hirakud Dam
of Orissa was his contribution for which people of Orissa especially farming
communities are benefited lot.
● He recalled his acquaintances with the State, having an opportunity to serve in the
State during 1985 to 1988 & he told that prior to his joining as CMD, UCO Bank he
was holding the post of Executive Director of Allahabad Bank and remained in
touch with the affairs of SLBC, Orissa which is a vibrant forum dealing with various
finance related issues related to the economic upliftment of Orissa. There has been
a considerable progress in different areas of the State.
● The Indian economy is passing through an exerting phase with GDP growth being
sustained at 9% level. The GDP (Gross Domestic Product) grew at 9.4% during
the fiscal 2006-07 as against 9.00% during 2005-06. The India's economy is
continued to race ahead and posted 9.3% growth 1st quarter of 2007-08 by robust
performances in the manufacturing, construction and service sectors and
noticeable improvement in the agriculture sector. Inflation touches 5-year low at
2.97 % for the week ended 3rd November because of the anti-inflation measures
taken up by RBI as well as Govt. of India, jointly.
● Orissa is blessed with mineral resources, long coastal line of 480 KMs, plentiful
inland water, diverse forest wealth and plentiful ground water. There is ample
scope of setting up of industries in the State and it is on the path of rapid
industrialization. Banks operating in the State are determined to take up viable
projects promptly which will definitely take the economy of Orissa to a greater
heights.
● The thrust area before the Bankers are Agriculture, SME, IT & Govt. sponsored
schemes such as PMRY, SGSY, WSHGs etc. Banks have to play a proactive role in
financing these sectors.
● It is worthwhile to mention that huge investment exceeding approx. Rs. 4.5 lakh
crores in sectors such as Steel, Aluminum, Information Technology, IT enabled
services, Power, Tourism etc. have been lined up in terms of MOUs signed by the
Govt. of Orissa and it has taken several bold initiative for fast industrialization of

5. 33
the State. In view of large scale industrialization of the State in future days to
come, Banks operating in the State have prospects in financing Small & Medium
Enterprises (SME) in large scale as their business propositions.
● Small & Medium Enterprises (SME) is the second largest employment provider after
agriculture and also has high share in export. The credit rating of Small & Medium
Enterprises (SME) is to be given prime importance while financing to these sectors.
● Ports are one of the vital infrastructures required for rapid industrial development
of the State. There are three upcoming ports at Dhamara, Kirtania and Gopalpur,
which will boost the performance in both manufacturing and trading sector. The
future of Orissa is very very bright and banks operating in the State have to cope
up with the expectations.
● Although the Banks in Orissa have already achieved the Doubling of Agriculture
credit, but it is learnt that agriculture productivity of the State is more or less
stagnant and roughly half of the national average. There should be a
diversification of traditional agriculture to Hi-tech agriculture; commercial
agriculture is to be financed by banks. It is understood that Hon'ble Chief Minister
of Orissa has promulgated some packages for farmers of the State by providing
seed Depots and expanding irrigation facilities. There is a plan of the State
Government to provide Kissan Credit Card (KCC) to all farming families in the State
to increase the crop production and agricultural productivity. He requested all
banks to achieve the targets set for Agriculture & issuance of KCC for the year
2007-08. As most of the farmers belong to small, marginal and landless category,
Banks should finance more and more on group lending either in Joint Liability
Groups (JLG) or Tenant Farmers Groups (TFG).
● The performance of Banks under ACP 2007-08 as on 30/6/07 is 84% of quarterly
target and needs improvement. He requested all banks to achieve the target set
for ACP 2007-08 which will boost the economy of the State. On year to year basis,
taking into account the National scenario of the hike of interest rates number of
times and slackening of credit growth, the deposit of commercial banks have grown
by 27.17% and advances by 17.15% and there is a sluggish credit growth which
needs to be improved.

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● The overall CD ratio in Orissa stands at 77% against the national parameter of
60%. The priority sector advances of commercial banks to total advances of
commercial banks is 57% as against the national parameter of 40%. Bankers and
the Government line Department deserves appreciation for this. The close co-
ordination between the Banks and State Govt. Officers, has resulted in
achievement of the target.
● The credit flow to SC/ST sector is to be increased as SC/ST population to the
State's total population was around 16.02% and 22.21% respectively as per 2001
census. There should be concrete plan of actions by Banks and Government line
departments to develop this segment by financing more and more eligible persons
for their self employment and generation of income.
● The Swarnjayanti Grama Swarozgar Yojana (SGSY) scheme is aimed at establishing
a large number of micro enterprises for individuals, groups or Self Help Groups in
order to bring every assisted family above the poverty line. The deficiencies in
service as pointed by the Panchayati Raj Department in implementing the scheme
are to be redressed for the successful implementation of the Scheme. The
applications under SGSY should not be kept pending more than 30 days at any
point of time at branch level.
● The Mission Shakti of Govt. of Orissa which is the brain child of Hon'ble Chief
Minister of Orissa started in the year 2001, is a holistic programme and has been
able to bring about a virtual revolution in the rural finance set up in Orissa as an
objective of empowerment of women. In Orissa more than 2 million women formed
more than 2 lakhs Women Self Help Groups (WSHGs) which have banked about Rs.
700 cores of rupees and those are definitely worthwhile steps towards the
eradication of poverty through Micro Finance. This is an impressive performance.
Financing Women Self Help Groups under Mission Shakti has brought improvement
in quality of life for micro entrepreneurs.
● Bhubaneswar has become the Educational Hub of Orissa. There are good number
of Engineering Colleges set up at Bhubaneswar to provide technical education in

7. 33
different faculties. We have to change the system from providing white collar job
seekers to practically job oriented technocrats capable to start with their own
venture. Entrepreneurship has to be developed in the State and there is a dearth
of potential in our State.
"Opening of Entrepreneurship Development Centre"
● One of the most important aspects responsible for successful industrialization and
economic development is development of entrepreneurship. As decided in the
104th SLBC meeting held on 29/12/2005, banks having more than 15 branches in
the State should open Entrepreneurship Development Centre (EDC) at their own
cost and infrastructure support would be provided by the State Government. I am
pleased to inform the house that UCO Bank has opened an Entrepreneurship
Development Centre at Puri on 27/08/2007, which was inaugurated by Sj.
Maheswar Mohanty, Hon'ble Speaker, Orissa Legislative Assembly in the presence
of Sj. Prafulla Chandra Ghadai, Hon'ble Finance Minister of Orissa.
"Opening of Financial Literacy cum Credit Counselling Centre"
● Sir, Pursuant to the assurance given by UCO Bank in the SLBC meeting held on 20th
July 2007, the Bank has set up a 'Financial Literacy cum Credit Counseling Centre'
at our Balasore Branch on 22nd September 2007. By providing sound advice to
arrest deterioration of income and restructuring their debt, credit counselling offers
a meaningful solution for borrowers to gradually overcome their debt burden and
improve their money management skills. High net worth individuals and corporates
have the necessary information to get their debts restructured and they also have
public policy in the form of debt restructuring mechanism on their side. However,
the common man does not have any such public policy/guidelines. The Centre is
set up for common people and particularly for the rural borrowers who cannot
engage expensive consultants and financial advisories. The credit counseling will be
provided free of charge and people who cannot visit the Centre can also write to
them about their credit related problems and the Centre will cater to their needs.

8. 33
● The crux of Globalisation in educational sector is that learning is no longer for
"Building of Nations" but a business for "Profit Making". Banks have to finance
educational loans to the needy students for their higher education.
● Of late, a number of incidents of dacoities in banks has occurred in Inter-State
Boarder districts. The State Government is already taking steps to prevent such
dacoities and he requested State Government to step up preventive measures,
more so as the looted money is going to the coffers of Maoists as reported in the
newspapers.
● As regard setting up of Special Certificate Courts at five designated centres viz.
Cuttack, Bhubaneswar, Berhampur, Sambalpur & Rourkela, the banks have
deposited Rs. 7.00 lacs for each Court with the Government for quick disposal of
certificate cases filed under OPDR Act under Govt. sponsored schemes. It is learnt
that although the Special Certificate Officers have been posted, the Courts are yet
to start functioning. Hence, concerned Government department is requested to
take necessary steps for effective functioning of the Courts immediately.
● While the economic growth rate has shown steady increase during the last few
years, it is being increasingly realized that the benefits of growth are enjoyed only
by a marginal segment of the population living in urban and semi urban areas. The
growth should be inclusive by empowering the poor through proactive policies that
helped the marginalized people take part in the market on firm and equitable
terms. Financial Inclusion is the backbone of micro finance services.
He quoted the dialogue of John F. Kennedy that,
"If a free society can not help the many, who are poor, it can not save the few who
are rich"
"Where there is no happiness for all, there can not be happiness for many".
He quoted the saying of Mahatma Gandhi, the Father of the Nation
"The poor of the world can not be helped by mass production but only production
by masses."
● It is essential to work together to develop the new paradigm of globalization where
primacy of the vast majority of under privileged is recognized and accepted as a
guiding principle.

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● For Policy Makers and Planners, Financial Inclusion has emerged as a top priority.
He appealed to the Bankers and Government Department to work in tandem to
complete the task of 100% Financial Inclusion of five districts i.e. Cuttack, Puri,
Nayagarh, Rayagada and Keonjhar as early as possible. We should achieve 100%
Financial Inclusion of the State on or before 2009.
● He concluded that lot of changes have been taking place in Orissa. The future of
Orissa is very very bright on account of industrialization, coming up of large scale
industries and Banks have to involve wholeheartedly in the process. He extended
his gratitude to all the members of SLBC who have been providing unstinted
support in growth of the State.
● Lastly, He once again appealed to the Bankers and dignitaries from the
Government department to work hard jointly for the progress and prosperity of the
State.
Then Gen. Manager, UCO Bank, Head Office Kolkata, requested Shri Pawan Kumar
Bansal, Hon'ble Union Minister of State, Finance to deliver his key note address.
Address by Shri Pawan Kumar Bansal, Hon'ble Union Minister of State, Finance
(E&FS), Govt. of India.
While expressing happiness in attending the 111th SLBC meeting of Orissa he pointed out
that he has been attending different States, attending one SLBC meeting of a State and
understanding the affairs of bank and studying the stock of the situations aimed at
welfare of the people of State which gives him a great satisfaction.
In his key note address he remarked as follows :
● Bankers in the country as a leader of financial set up are very much
enthusiastics in delivering financial services to the people; however, some
bankers are having apathetic attitudes for themselves as driver of the growth.
● He expressed happiness over the 100% Financial Inclusion of Himachal Pradesh
which is comparatively backward, hilly state, with inaccessible areas.

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Incidentally UCO Bank being the Convenor of SLBC, of Himachal Pradesh which
has achieved 100% Financial Inclusions is definitely praiseworthy. The bankers
in the state deserve appreciations for the same. It was possible for the
constant, coordinated and concerted approach of Bankers and Govt. officials,
particularly credit goes to the then Secretary, Finance, Govt. of Himachal
Pradesh. H.P. has achieved 100% Financial Inclusions in the shortest possible
time, being the first state all over India to achieve 100% financial inclusion.
● He laid emphasis on Financial Inclusion and told that Central Govt. & RBI had
begin with the Pilot Project asked each State to adopt one district for 100%
Financial Inclusion.
● The Prime Minister of India is very much particular about the 100% Financial
Inclusion of our country since Financial Exclusion leads to Social Exclusion. Our
economic growth and development should percolate down to the poorest of the
poor and then only we can take legitimate pride, saying that India is a country
which is on the march ahead and moving forward.
● Like Himachal Pradesh, all the State and Union territories of our Country must
have 100% Financial Inclusion. He wanted that every State should have similar
commitment for the Financial Inclusion. Already Hariyana and Punjab agreed for
100% Financial Inclusion. All other States in our country have already accepted
the exercise of Financial Inclusion. He desired that at least 50% of the districts
of Orissa State should achieve 100% Financial Inclusion by the end of October
2008 (i.e 31.03.2008 although the task is very stupendous and difficult.
● Then he brought the attention of the CMD UCO Bank and Chairman, SLBC
Orissa to cover the 100% Financial Inclusion of entire state by 31.03.2009.
● While mentioning good beginning of Financial Inclusion of Orissa he expressed
dissatisfaction of the progress in this regard.
● As it is a new exercise, Bankers should continue with determined efforts with
the co-operation of all the revenue officers at grass root level together. The
survey of the district must be made first and then go to the people for opening
of No Frill Accounts.

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● The progress of Financial Inclusions of five districts i.e. Cuttack, Puri, Nayagarh,
Rayagada & Keonjhar found to be minimal and he hoped that the progress will
be gaining momentum. Each one involved should have endeavour to move
forward and complete the task of 100% Financial Inclusion of those five
districts in a time bound programme i.e by the end of March 2008.
● He expressed happiness over the performance of Banks in Orissa in respect of
CD ratio of the State which was about 77% as of 30.06.07. He complemented
the banks operating in the State as well as SLBC for the CD ratio of the State
which has been more than the national stipulation of 60%.
● Orissa has rich cultural heritage, having abundant national wealth hidden below
the earth to be exploited. He said that in the contrary it has KBK district which
require utmost attention and he wanted that those eight districts should be
identified for completion of 100% Financial Inclusions immediately. Those
districts may be given top priority which need the attentions from policy matter,
planer, Govt. line Deptt.
● He expressed happiness over the advance to Agriculture and that the total
advance which is at 20.08% against National stipulation of 18%. He also
complimented the bankers for financing to the weaker sections of the society
having achieved more than the stipulated level of 10% of the Net Bank Credit
i.e. 25% of the advance of the Priority Sector Advance.
● In the State 80% of the people are dependant on Agriculture, land holding is
very low, most of them are Small and Marginal farmers. He told that in the
entire country 80% of the Farm households have land less than two & half
hectors (2.5). Large number of people in rural area dependant on Agriculture
are still deprived of access to the bank. He emphasized for financial inclusions
of those who are still excluded from the financial system.
● The target of doubling of the Agriculture Credit of Govt. of India to be achieved
in 3 yrs i.e as on 31.03.07 was achieved by the Banks in 2 years. It goes to the
credit of banking sector that it has been achieved in 2 years. Targets under
Agriculture has been enhanced and he was sure that Banks in Orissa must

12. 33
achieve more than the target. At the national level, 50 lakhs new farmers are
targeted for financing, out of which 2.5% should be oral lessee and tenant
farmers.
● The State is doing well in Industrial Sector. He told that 19 Industrial Clusters
and 73 handloom & handicraft clusters have been identified which has to be
given emphasis. The financing under cluster approach has to be encouraged for
raising industrial production of the state.
● About financing Self Help Groups, the state has 3 lacs out of 28 lacs in the
country which is found to be satisfactory. 2.8 lacs of WSHGs have been credit
linked and the achievement is outstanding. The proportions is quite good, but
still more number of SHGs are to be formed and credit linked.
● The role of Banking Sector is changing with change of time; it is no more
traditional banking. The people expect much more from this sector. Banks have
been taking steps to set up training institutes for training of the Entrepreneurs
and to develop forward linkage of Self Help Groups.
● The credit absorption capacity of the loanee is to be judged before extending
loan. He cited the good model of Federations of SHGs in Andhra Pradesh,
providing forward linkages to SHGs have been instrumental for the financial
inclusion and micro finance.
● He said that success stories / experiences of accomplishment of goal of
Financial Inclusion is to be shared from place to place, from other branches,
other offices, so that methods/models can be replicated, which would impact
upon them and would raise their standard of living. Despite the facts that banks
today are more of commercial organisation, bank should have to follow
scrupulously the laid down norms as stipulated at the time of the
Nationalisation of Banks in the year 1969, which hold even today.
● He complimented the RBI, Bhubaneswar for bringing out the booklet on
Financial Literacy which he has been emphasizing for spreading financial
education aiming at reaching out to the people, enhancing their credit
absorption capacity through extending finance by the banks, so that people at

13. 33
the bottom strata of the society would be part of the developmental process.
The basic purpose is to raise the economic condition of the down-trodden
society. The Financial Literacy Programme launched by the RBI has got
immense importance, he complimented the RBI for the same.
● Selective monitoring of the borrowal Accounts would ensure the end use of
funds. There should not be misutilisation of the loans and there should not be
diversion of funds.
● Last but not the least, he said that all scheduled commercial banks are required
to disburse DRI advance minimum to the extent of 1% (one percent) of the
Bank's total advance as at the end of previous year. The eligibility under DRI
loan has been raised and conditions have been relaxed.
● He thanked each one present in the meeting and looked forward for meaningful
agenda wise discussion and concluded his speech.
Then GM, UCO Bank, Head Office, requested Finance Minister, Orissa to deliver his key
note address.
Address by Shri Prafulla Chandra Ghadai, Hon'ble Finance Minister, Govt. of
Orissa.
While expressing pleasure over the presence of Hon'ble Union Minister of state in 111 th
SLBC meeting of Orissa he told that the deliberations of Mr. Bansal emphasizing the
implementation of different programme will have impact on all concerned. However,
certain area of the state remained backward & poor, who should be given more attentions
by bankers as well as the Govt. In his key note address, he remarked as follows :
● Although CD ratio of Orissa has been increased to a considerable extent and as
of 30.06.07 it was 77%, but still number of nationalized banks such as
Allahabad Bank, Canara Bank, Central Bank of India, Corporation Bank, Indian
Overseas Bank, Punjab National Bank, Syndicate Bank have not achieved the
stipulated level of 60% as prescribed by the RBI.
● He brought to the notices of the Union Minister of State, Finance, Govt. of India
regarding flood affected areas in a number of the districts of the State, which

14. 33
happened during the months of July, August and September 2007 due to heavy
rain.
● He gave pictures of the flood affected areas of the State stating that 2 lacs
hectares of cropped area have been damaged and there has been loss of
human lives and live stock population and also a large number of dwellings
have been damaged.
● This necessitates huge relief and rehabilitation operations which is to be
supplemented by liberal extension of production and investment credit in
Agriculture and other credit in flood affected areas.
● He exhorted Regional Director, RBI, Regional Heads of Banks operating in the
state & CGM NABARD to take necessary steps for extension of liberal production
and investment credit expeditiously in flood affected areas without insisting
upon recovery of agricultural loans already extended.
● He said that Bankers in Orissa have doubled the Agriculture Credit but initial
investment in Agriculture Sector was low in this state. That's why we could
double it in small time span. He advised the bankers to keep it up and the
tempo should be maintained in financing to Agriculture Sector which is the
backbone of the economy of the State.
● He called upon all concerned including bankers to develop SME sector in the
State which have high potential for employment generation. Hon'ble Finance
Minister, Govt. of India has indicated doubling of bank advances to Small and
Medium Enterprises by 2010. On perusal of the Agenda note, he observed that
percentage of MSE advances to the total advance is only 7.34% which needs
improvement. There is urgent need for increased thrust on extension of more
credit to Small Scale Industries, Small & Medium Enterprises including adoption
and co-ordination of activities by the banks in Industrial Clusters declared by
the State Government.
● He stressed upon the bankers to take advantages of CGTSI as there will be no
difficulties for bankers to finance more number of units under MICRO, SMALL &
MEDIUM ENTERPRISES Sector especially when the State Government has

15. 33
signed a good number of MOUs with different Leading Business Houses of the
country at national & international level for establishment of large industries
and institutions in different industries. At the same time he informed the house
that 57% of SSI units of Orissa have been sick, which may go up. He suggested
that sick MSE Revival Plan may be formulated for the State and he specifically
brought this to the Hon'ble Minister of State, Finance, Govt. of India.
● He told that about 50% of the State's populations are rotting below the poverty
line and their standard of livings are to be raised by increasing their income, so
that they remain above the poverty line & he was hopeful that by improving
Agriculture Sector & SME Sector employment can be generated. He said that
unless both the sectors are developed, the per capita income of the State can
not go up.
● He proposed to introduce SICK MSME revival plan in the state. Banks like SBI,
UCO Bank, Andhra Bank, Bank of India & Banks having large presence in Orissa
in association with Industry Deptt., Govt. of Orissa should identify the revival of
such enterprises & package of revival. The reputed credit rating agencies such
as SMERA can also be involved for rating of sick industries. Govt. of Orissa has
given a lot of importance for revival of sick industry.
● Infrastructure development is very much critical for sustainable development.
Banks should come forward as a partner in PPP mode (PUBLIC PRIVATE &
PARTNEERSHIP) in critical projects being implemented by the Govt. in areas like
development of Ports, Construction of roads, industrial requirements based on
the core strength of Orissa.
● on financing under cluster approach, he said that many banks have adopted
Industrial Clusters in Orissa, but notable progress has not been achieved. Banks
should exercise this programme of financing the industries under cluster
approach more actively.
● He told that, regarding Financial Inclusion, the CMD, UCO Bank has promised to
make all out effort to complete the 100% Financial Inclusion of the state and
RBI desires that banking facilities should be available to all sections of the

16. 33
society, a basic bank account with low/minimum balance and low maintenance
of service charges. The progress of the Financial Inclusion should be monitored
by Regional Director, RBI, Regional Heads of the Bank, and Convenor, SLBC, i.e
UCO Bank on timely basis for completion of the 100% Financial Inclusion of the
State.
● While talking about interest subventions to farmers, by Govt. of India, the
facilities being available to Public Sector Banks and RRBs, Co-operative Bank are
deprived of that. In Orissa large number of farmers are benefited by the Co-
operative Bank, Intt. subventions should be made available to the farmers
financed by Co-operative Bank. He told that matter has been placed by him
before Shri P. C. Chidambaram, Hon'ble Finance Minister, Govt. of India for
extending interest subventions to the farmers financed by Co-operative bank.
● He told that some Regional Heads of Bank have been taking proactive role in
promoting Self Employment Programme like PMRY, REGP, SGSY, SJSRY and
financing more under those scheme while some bank are lagging behind. He
exhorted the Regional Heads of Banks whose performance is not satisfactory to
improve their performance in financing Govt. sponsored scheme.
● He advised Bankers to participate whole heartedly in State Employment Mission
headed by Hon'ble Chief Minister, Orissa which will provide employment
opportunities to large number of youths in the state. He requested the bankers
to hold BLCC meeting immediately after "ATMA NIJUKTI PARAMARSHA MELA"
in each block. It will help in identifications of the potentials of the area, so that,
it will find place in credit plan of the block and the district.
● Lastly, he appreciated the performance of the banks in extending banking
services and thanked Shri Pawan Kumar Bansal, Hon'ble Minister of State,
Finance, Govt. of India having attended the SLBC meeting of Orissa and
addressing the gathering, whose deliberations and discussions would inspire all
of them to go ahead for development of the State.
General Manager, UCO Bank, Head Office, requested Shri G. Jagan Mohan Rao, Regional
Director, RBI to deliver his address.

17. 33
Address by Shri G. Jagan Mohan Rao, Regional Director, RBI, Bhubaneswar.
At the outset he told the message from the Governor, RBI which was :
"The democratization of the 'Financial Inclusions' also the fair practice code to be followed
by the Bank."
● He informed that Governor, RBI, on the eve of monetary policy had laid
emphasis on two points, bankers treating the common man unfriendly and the
business models of the banks to be reviewed.
● He told that financial inclusion would solve eight problems at a time.
● He cited the examples of the states like Punjab, Hariyana and Andhra Pradesh
which have marched ahead because of the inclusive growth and performance of
Financial Inclusion. In fact, in Orissa, we have adopted a "Corporate Model" for
Financial Inclusion, as a matter of fact bankers in Orissa are ready to bear cost
of foot workers of the State Govt. (Anganwadi Workers). The progress of
Financial Inclusion in the state, the response from all level is found to be far
from satisfactory. As a matter of fact, where the response is very fast, in those
districts, there would be a good result. He sought the involvement of the district
administration for the Financial Inclusion to be completed in time framed by the
SLBC.
● He said that Banks do not have adequate staff to go round the villages and find
out the financially excluded people, therefore banks have engaged a consultant
by cost sharing basis. Account opening form are made available in the banks,
even cost of the photographs have been borne by the bank. He once again
requested the State Govt. machineries to help the banks for achieving the
national goal of 100% Financial Inclusion in the state. The State Government
assistance is required for spreading Financial Literacy through Public Private
Participation. Booklet on Financial Literacy has been brought out both in Santal
language and Oriya language by the RBI to boost financial literacy.
● He reiterated the quote of Hon'ble Finance Minister of State, Govt. of India that
Financial Exclusion leads to social exclusion and Financial Campaign is going on
in the state. Banks have been asked to establish Financial Literacy Centre /

18. 33
Credit Counseling Centre and Credit Counseling Centre has been established at
Balasore by UCO Bank.
● All banks operating in the state should establish Credit Counseling Centre at
district head quarter to spread Financial Literacy in the remote rural area and
who ever wants Credit Counseling can get it on line, wherever he is. RBI
website is made available to all the people. Only educated people can get the
opportunities to know the things but uneducated people can not take
advantage of the facilities through online hence banks should go to the rural
area to spread the message of Financial Literacy amongst the people.
● In Andhra Pradesh, the State Govt. has been providing immense help for
spreading of Financial Literacy and achieving the Financial Inclusion in the
state. He called upon the Govt. machinery of the State to help the bankers for
the purpose. The seminar being conducted, competitions have been made for
the students and RBI has spent more than Rs. 2 lacs in advertisement for social
cause of Financial Inclusion / Spreading Financial Literacy to create awareness
among the public, Financial Literacy has been propagated by the RBI and banks
through TV / Radio to make the public aware of the spreading Financial
Education. It may continue for 52 weeks i.e upto 1 year and he expressed
dissatisfaction for the progress of the Financial Inclusion in the selected five
districts i.e Cuttack, Puri, Nayagarh, Rayagada and Keonjhar.
● He requested Hon'ble Finance Minister to issue instruction to the District
Collectors to impress upon the Anganwadi Workers of the district to help the
banks in the programme of Financial Inclusion. He has written letters to the
Chief Secretary, Orissa and District Collectors for the purpose. Unless active
cooperation from the State Govt. is forth coming, the progress would be slow
may get halted.
● He told that bankers' support in the flood affected district is satisfactory. The
CD ratio of the banks is quite satisfactory although some banks are lagging
behind. CD ratio will be sustainable if the credit absorption in Agriculture sector

19. 33
is improved. There should be credit absorption capacity which is possible
through investment credit to Agriculture.
● For financing to Agriculture sector under Annual Action Plan, he told that
direction has been given to all the Banks in Orissa state for financing more than
the target allocated to them.
● He told that through employment generations programme which includes
PMRY, SGSY, economy of the State can be improved, there is no dearth of
funds for implementing employment generation programme by the Banks.
● He concluded his speech by extending gratefulness to Hon'ble Finance Minister
of the State, Govt. of India for encouraging the bankers for going ahead with
the programme of Financial Inclusion which in turn will solve many problems at
a time including increase in CD ratio and improvement of literacy.
Then GM, UCO Bank, Head Office, requested CGM, SIDBI to give his address.
Address by Shri K. S. Singhwan, Chief General Manager, SIDBI.
While talking the role of SIDBI for the promotion of MICRO & SMALL ENTERPRISES he
expressed as follows.
● SIDBI, since inception has been playing pivotal role in promoting MICRO &
SMALL ENTERPRISES in the State, so far they have extended about Rs. 1000
crores of assistance to about 25,000 units in the State which have provided
employment opportunities to 1 lac person in the State.
● SIDBI has been given focus for MICRO CREDIT which has emerged as great
tool to alleviate poverty and grounding of Enterprises. SIDBI has so far
extended about Rs. 60 crores of assistance under MICRO FINANCE
activities which has covered about 1 lac of beneficiaries. Mostly women of rural
areas / far off places have been benefited a lot.
● For creating and capacity of MICRO FINANCE INSTITUTIONS (MFI) in the state,
SIDBI Orissa has set a target of Rs. 55 crores fresh assistance in this year
which will go to the lakh of beneficiaries in the state.

20. 33
● SIDBI has set up a special cell for MICRO FINANCE in eastern zone which is
headed by Zonal Manager which will give further push to the MICRO FINANCE
movement in the state.
● He announced with great pleasure that Orissa stood 5th in the country in SIDBI
MICRO Finance assistance is concerned.
● Under Credit Guarantee Trust for MICRO & SMALL ENTERPRISES for granting
collateral free loans, SIDBI has granted 5123 proposals in the state as on
October 2007 against the Bank's loan granted upto the extent of Rs. 77.85
crores. Orissa stood 6th position in India in terms of unit and in terms of amount
of loan, Orissa position is 10th in the country. Under the scheme, the coverage
has been increased to Rs. 50 lakh from Rs. 25 lakhs and this will cover almost
98% of the MICRO & SMALL ENTERPRISES.
● Earlier, the coverage of guarantee to the unit under the CGTMSE was upto 75%
and now loan upto Rs. 5 lacs, the coverage of guarantee was upto 80% and
loan to Women Enterprises, the coverage of guarantee was also upto 80% of
the loan.
● The Rural Industries Programme has been launched in selected districts to
provide assistance to the progressive entrepreneurs for spread of industries in
rural area and Orissa SIDBI is working in 9 districts and 2800 units have been
identified which will provide employment opportunity to 11000 persons. Under
cluster approach, SIDBI, Orissa has been working in 5 clusters including
handloom cluster.
● He emphasised for the training of the Entrepreneurs, SIDBI has organised
training and 62000 entrepreneurs are trained at national level and 1400 persons
have been trained in Orissa. Skill upgradation programme have been organised
in 60 different places and 3000 persons have been trained.
● Under various incentives, SIDBI has given training to over 5000 entrepreneurs
to the state of Orissa.
● SIDBI has also introduced Country Finance Scheme. SIDBI has been
contributing equity to largest number of Small Scale Industries unit for

21. 33
promotion of MICRO & SMALL ENTERPRISES. Equity has been extended to MFI
to give micro credit a further push.
● SIDBI is also working on the idea of setting up special exchange for Small &
Medium Enterprises.
● With great pleasure he said that SIDBI has decided to set up training centre at
BBSR.
Power Point Presentation by Shri A. Sudhakar on Financial Inclusion.
● Then Shri A. Sudhakar, CGM, RBI, Central Office, Mumbai made a power point
presentation. In power point presentation he dealt with the following points.
● Two Private Sector Banks have endeavoured for spreading financial inclusion
(IT enabled Financial Inclusion). Financial Inclusion is about creating access for
every one to appropriate Financial Services.
● Good work has been done in our neighbouring state Andhra Pradesh in
Financial Inclusion Programme.
● In the country about 400 million people are covered in Financial Inclusion.
● Our aim is to create Banking Infrastructure in every village for delivery of every
kind of financial services including insurance.
● He said that financially excluded people are found more in number in the State,
although there are 2748 number of bank branches in the State, less than 40%
of the people are financially included. Bank branches are situated at a long
distance in many places, while people going to large distance, loose daily wages
and for repayment of loans, they also loose one day wage which adds to the
cost of taking loan. For opening of the No Frill Accounts, it is not possible to
open branch at each village, which requires huge investment, hence IT enabled
Financial Inclusion will serve the purpose.
● RBI had appointed a committee in North East headed by Mrs. Usha Thorat,
Deputy Governor of RBI for Financial Structure Reform. One of the
recommendations of the committee is to have IT enabled Financial Inclusion
through the Banking correspondent product model and RBI has permitted
banks to appoint banking correspondent in the village. These correspondents

22. 33
may be any registered entities, like co-operative societies, the MFIs and
registered NGOs.
● These entities can be used as bankers in the villages, so that each village of the
country has a bank. In fact this will solve the problems of distances, loss of
wages for banking transaction, Business Correspondent model will act as
powerful economic catalyst for revival of village economy. Not only saving will
be mobilised, insurance coverage will be more. That will inculcate the saving
habits amongst the villages.
● He cited the example of Mumbai, Dharavi where no bank branch is operating,
but Indian Bank through BUSINESS CORRESPONDENT model has mobilised
crores of deposits.
● SBI, ICICI had taken up Banking correspondent model and captured the villages
and he laid emphasis on introduction of BIOMETRIC CARD to carry out IT
enabled financial Inclusion in the state.
Agenda Item No. - 1
The Proceeding of 110th SLBC meeting held on 20.07.2007 at Bhubaneswar is taken
as confirmed.
Agenda Item No. - 2
ACTION TAKEN REPORT
1. Under performance to SME sector, the Banks as a whole in Orissa have achieved
143% of the target.
The performance of SSI & ME sector to the Net Bank Credit as of of 30.06.07 was
7.34% and 5.75% respectively and is required to be improved. The adopted
clusters of the various banks require plan of actions by the Banks as well as Govt.
Deptt. for increasing flow of credit to SME sectors and Handloom and Handicraft
Sectors. The Banks which have not adopted clusters must adopt the clusters
identified by the Sate Govt. (Clusters identified by Industries Deptt., Govt. of Orissa
and Directorate of Handicrafts and Cottage Industry, Directorate of Textiles and
Handloom Deptt., Govt. of Orissa).

23. 33
It was noticed that in financing to Handloom and Handicraft Sector, Banks
operating in the state are not providing/sharing informations to SLBC and Govt., as
a result of which no meaningful progress is made in the sector.
Around seven lacs of people in Orissa are highly skilled in weaving and handicraft is
our tradition & heritage providing employment generation in the state. The sub-
committee of SLBC for increasing credit flow to Handloom and Handicraft sector
should be very effective for rigorous monitoring and sharing of informations. The
deficiencies noticed in financing handloom and handicraft sector may be intimated
to the Empowered Committee of RRBs, headed by Regional Director, RBI,
Bhubaneswar.
Apart from financing to SHGs in handloom and handicraft sector, Banks should
sanction individual loans to weavers to boost the economy of the state. Pending
application of SSI (SME) with Banks may be disposed at an early date. All possible
steps may be taken by the banks and Govt. Deptt. for revival of sick units.
Entrepreneurships may be developed by banks through the training institutions
already established by banks.
Sick MSE Revival Plan as a specific plan may yield fruitful results, which involves
two steps.
1) 1st steps Identification of potential sick unit - This exercise will be done jointly by
DIC & Banks working in the districts in a time bound manner. All banks must
identify the potential viable sick units in the respective areas.
2) 2nd Step :- Prescribed specific package for revival of sick units may be chalked
out through appropriate credit information. This is to be done by the committee
which is known as State Level Inter Institutional Committee (SLIIC). Any unit
revived by credit infusion will be treated as a new unit, these units are eligible to
avail all incentives (subsides) as applicable to new units. The major banks
operating in Orissa may set up specialized SME branches in appropriate locations to
increase the credit flow to SME sector.

24. 33
Action : Banks / Industries Deptt., Govt. of Orissa / Directorate of
Textiles and Handloom, Govt. of Orissa / Directorate of Handicrafts,
Govt. of Orissa.
2. The Banks should finance more & more under Credit Guarantee Fund Trust Scheme
for MICRO & SMALL ENTERPRISES which help the entrepreneurs to avail collateral
free loan upto Rs. 50 lacs which includes REGP (Rural Employment Generation
Programme). It was observed that the average loan size covered under scheme is
Rs. 1.51 lacs which is less than the all India average of Rs. 2.61 lacs.
Action : Banks / KVIB / KVIC / SIDBI
(03) Financial Inclusion :
(i) The financial inclusion of five districts i.e Cuttack, Puri, Rayagada, Nayagarh &
Keonjhar, identified in the month of April 2007, may be completed by March 2008
without fail. The Controlling Heads of Banks, LDMs and concerned Govt. Deptt. of
those districts should take a note of it.
(ii) SLBC, Orissa again identified all districts Kendrapara, Koraput, Kandhamal,
Kalahandi, Nuapara, Bargarh, Jharsuguda, Jagatsinghpur, Bhadrak, Balasore,
Angul, Dhenkanal & Mayurbhanj for 100% Financial Inclusion to be completed by
October 2008.
It was decided that Financial Inclusion of the State will be completed by 2009.
The Govt. may provide all support for completion Financial Inclusion of the State.
Banks, Govt. line Departments and all concerned were requested to implement the
programme of Financial Inclusion whole heartedly in a time bound programme.
LDMs of the districts must take it as challenge and take all possible measures for
completion of Financial Inclusions of the state. The 100 percent financial inclusion
of the state should be taken as a mission by the Govt. and Banks operating in the
State.
Action : Banks / Govt. Line Deptt.
1. As regards establishing Entrepreneurship Development Programme (EDP) training
institute, the Govt. may provide infrastructure to Union Bank, who proposed to

25. 33
have a training institute of Rural Artisans at Bhubaneswar and to Bank of India at
Baripada. The decision of the Punjab National Bank to set up Farmers' Training
College at Bhubaneswar is a right step for imparting training to farmers in the State
and the progress in this regard may be intimated to SLBC immediately. Most of the
Banks find it difficult to set up the institutes of their own. Till opening of EDP
Institute by Banks, they may utilize the services of IED (Institute of
Entrepreneurship Development) for training of their entrepreneur.
Action : Banks / Industries Deptt., Govt. of Orissa, IED.
2. The Special Certificate Courts at five district centres i.e at Cuttack, Bhubaneswar,
Berhampur, Sambalpur and Rourkela will start functioning immediately as opined by
the Revenue Deptt., Govt. of Orissa in the House.
Action : Banks / Revenue Deptt., Govt. of Orissa.
3. Regarding waiver of Court fees for filling of Certificate Cases under OPDR Act,
Circular No. 51370/RRDM dated 4.11.06 of Joint Secretary to Govt., Revenue
Deptt., Govt. of Orissa has been circulated under cover of letter No.
RO/SLBC/243/07.08 dated 13.09.07. Bankers have to follow the same while filing
of the Certificate Cases.
However, Bankers present in the meeting requested the State Govt. to waive the
stamp duty altogether as the loss of revenue would be minimal. In response to the
request of the bankers in respect of waiver of stamp duty, Hon'ble Finance
Minister, Govt. of Orissa assured the house that the matter will be examined by the
Govt. of Orissa.
Action : Banks / Revenue Deptt., Govt. of Orissa, Finance Deptt., Govt. of
Orissa.
(07) Regarding Implementation of the UP pattern of Recovery Act, a small committee
already constituted, would submit the report to the Govt. for doing the needful.
Action : UCO Bank, SBI, Revenue Deptt., Govt. of Orissa.
(08) As the parting of district wise correct data by LDMs of all 30 districts of Orissa
could not be done till date, it was earlier decided that district wise data will be
compiled in a simplified format by LDM, DSWO or DDM & AGM of DDM or AGM of

26. 33
NABARD with their joint signatures for authenticity of the data. Except 6 LDMs,
namely of Kandhmal, Puri, Nawarangpur, Malkangiri, Gajapati, Bhadrak, no others
have submitted the data. Hence they are requested to submit the data by 10.12.07
without fail.
Action : LDM, DSWO, NABARD, BANKS, SLBC.
1. As regards financing Two wheelers to "GOMITRA", it was decided that viability of the
scheme is to be approved by the small committee consisting of representative
NABARD, UCO Bank, SBI, & Bank of India & Animal Husbandry Deptt. Animal
Husbandry Deptt., Govt. of Orissa is requested to send the captioned scheme to
SLBC for doing the needful.
Action :- NABARD, UCO Bank, SBI, Bank of India & Animal Husbandry
Deptt., Govt. of Orissa
(10) Under State Employment Mission, Banks have to participate wholeheartedly with
sincerity and have to achieve the target given to them for 2007-08. The bankers
are requested to distribute branchwise target under Self Employment Mission
immediately.
Action : Banks / State Employment Mission.
(11) The State Level Monitoring Committee for focused approach towards SJSRY is
already constituted. The outcome of the committee may be shared with SLBC at
the earliest.
Action : Urban Deptt. Govt. of Orissa, SLBC.
Agenda Item No. - 3
Fresh Issue
A) Issue raised by Director of Agriculture & Food Production, Orissa.
1) Purchase of Tractor and subsidy :
It was decided in the 111th SLBC meeting that, the anomaly observed in extending
tractor loans by any bank, may be rectified at their end. All Banks operating in the state
may look into the matter. DIF is requested to kindly look into the matter.
Action : DIF / Director, Agriculture / Concerned Bank.

27. 33
2) Score sheet for loan sanction :
State Bank of India has launched its own scheme namely "Scoring Pattern of Loan"
for Tractor financing and SLBC has nothing to do in this regard. However CGM, SBI is
kindly requested to look into the matter.
Action : SBI / Director, Agriculture.
3) Agriculture Credit for individual crops :
SLBC has advised all the Banks/LDMs to submit the crop wise achievement data.
After getting the same, it will be compiled and submitted to Director of Agriculture. Some
senior Bankers said that crop wide data can not be readily compiled and total loan
financed under crop loan scheme are being reported as usual.
Action : LDMs / Banks.
4) B-Component of Agriculture Loan :
As per the guidelines of RBI & Govt. of India, it was decided to give KCC to every
farmer for crop production. Hence the farmers can draw cash from the ATM cards from
their saving accounts. So there will not be any binding upon the farmers to avail kind
component and also discretions to the farmers for availing cash or kind component for
crop production.
Action : Banks / LDMs / Govt. line Deptt.
5) Mini Workshop for ITI Trainees :
It was decided that Banks operating in the state may sanction loan to ITI trained
personnel to open mini workshop at rural areas towards repair and maintenance of farm
machineries and equipments.
Action : Banks /LDMs / Govt. line Deptt.
6) Cash handling charges :
The cash handling charges by the SBI has been taken care of, as reported by the
Director Agriculture, Orissa.
B) Issue raised by Director of Fisheries, Orissa.

28. 33
Banks are requested to extend finance for Aquashop & other 14 schemes circulated
in the 111th SLBC meeting to increase the fish production in the state, Fisheries Deptt.,
Govt. of Orissa.
Action : Banks / LDMs / Govt. line Deptt.
C) Issue raised by Director of Textiles, Orissa
Banks are advised to adopt one handloom cluster and organise awareness camps
in order to enhance financing under Handloom & Textile Sector. Individual loan to
weavers may be encouraged by the banks for increasing credit flow to Handloom &
Handicraft Sector.
Action : Banks / LDMs / Govt. line Deptt.
D) Issue raised by Director of Industries, Orissa
Banks are advised to finance more industrial activities on priority basis under PMRY
schemes. Necessary steps may be taken jointly by the Banks as well as Govt. line Deptt.
to increase the recovery in PMRY. The revised target of PMRY has been distributed
amongst the bankers to finance PMRY loan for providing employment to educated
unemployed youth in the state.
Action : Banks / Govt. line Deptt.
E) Issue raised by Khadi & Village Industries Board, Orissa
REGP of KVIB plays a key role which will provide employment to the rural youth. So
all the guidelines issued by the concerned institution should be followed scrupulously by
the banks operating in the Orissa. (The discrepancies pointed out by the KVIB, Orissa may
be referred in page No. 14, 15 & 16 of Agenda Notes of 111th SLBC meeting.)
Action : Banks / LDMs / Govt. line Deptt.
F) Issue raised by OSFDC
Banks/LDMs are advised to take necessary steps to achieve the target under the
said scheme, dispose the pending applications, disburse the sanctioned cases and submit
the utilisation certificate to the corporation.

29. 33
Action : Banks / OSFDC.
G) Issue raised by Mahila Vikas Samabaya Nigam
All banks are advised to observe Tuesday of the week as SHG day & a board may
be displayed in this regard in front of the bank branches. It is noticed, the WSHGs are
being credit linked without opening of the Saving Bank Accounts which is highly irregular.
Hence before WSHGs being credit linked, SB a/cs must be opened.
Action : Banks.
H) Issue raised by Agriculture Insurance Company of India Ltd.
All Banks should implement the Rashtriya Krishi Bima Yojana as per the guidelines
laid down by the Company & necessary steps should be taken to submit discharge
voucher and utilisation certificate in time to the Insurance Company.
Action : Banks.
I) Issue raised by Department of Information Technology, Govt. of Orissa.
As Common Service Centre (CSC) scheme of Govt. of India will not only generate
employment opportunities for rural youth but also spread IT sector in rural areas to a
greater height. The entrepreneurs who have completed training at OCAC are to be
provided with credit for their self employment.
Action : Banks / Govt. line Deptt.
J) Issue raised by Andhra Bank, Zonal Office, Bhubaneswar
Waiver of stamp duty on all type of agricultural loans to SF/MF up Rs. 1.00 lakhs
and creation of PMRY recovery cell at State level to monitor the progress of recovery
should be considered by the Govt. for the interest of the farmers.
Action : Revenue Deptt., Govt. of Orissa.
K) Issue raised by The Orissa State Cooperative Bank Ltd.
It was decided in the steering committee that all Public Sector Bank/RRBs should
achieve more than the target allocated to them under crop loan and other Agriculture
Sector. Hence Public Sector Banks and Regional Rural Banks operating in the state are
advised to achieve the maximum beyond the allocated target set for Agriculture.
Action : All Commercial Banks.
L) Issue raised by Reserve Bank of India, Bhubaneswar

30. 33
1) Regarding Financial Literacy
RBI is prepared to support Financial Literacy Project with materials and training.
Banks/Govt. line Deptts. are advised to provide dissemination mechanism through
Branches, Panchayats & Schools.
Action : RBI / Govt. line Deptt. / Banks.
2) Financial Inclusions of Angul District :-
It was decided to take 100% Financial Inclusion of Angul District in the next phase
without out side support. The decisions of the 100% Financial Inclusion of the State has
been already mentioned in ACTION TAKEN REPORT.
Action : LDM / Govt. line Deptt./Banks.
3) Opening of branch at Padampur
It was decided in the steering committee that, opening of branch will not be viable
because of presence of three Banks namely State Bank of India, Utkal Gramya Bank and
Central Co-operative Bank. However DGM, RBI, RPCD, Bhubaneswar is advised to invite
Hon'ble MLA for discussion on the matter.
Action : Reserve Bank of India.
M) Issue raised by Panchayati Raj Deptt., Govt. of Orissa.
Poor achievement, quick disposal of applications & communicating target
to Panchayati Raj Deptt. under SGSY scheme.
Banks operating in Orissa are advised to improve the performance under the said
scheme. As SGSY scheme is a major poverty alleviation programme implemented all over
the State, for successful implementation of SGSY, Banks & LDMs are advised to take
necessary steps. All concerns are advised to go through the Agenda Note of 111th SLBC
page No. 27 in detail.
Action : Banks / AUCCB / LBO, Bargarh.
N) Issue raised by Director, Institutional Finance & Ex-offico Addl. Secretary to
Govt. Finance Department, Govt. of Orissa.
Financing to Muslim Community of India.
A high level committee headed by Hon'ble Justice Rajinder Sachar on Social
Economic & Educational of Muslim Community of India has submitted the report. Banks &

31. 33
other concerned departments should take necessary steps in implementing the suggestion
/ recommendation given in the report.
Action : Banks / LBOs / Govt. line Deptt.
Agenda Item No. - 4
Banking Key Indicator as on 30.06.07
The CD Ratio of Public Sector Banks such as Allahabad Bank, Bank of Maharastra,
Canara Bank, Central Bank of India, Corporation Bank, Indian Overseas Bank, Punjab
National Bank, Punjab & Sind Bank, State Bank of Hyderabad, State Bank of Mysore,
Syndicate Bank, United Bank of India and Vijaya Bank and Private Sector Banks such as
Rajasthan Bank Ltd., South Indian Bank has been less than 60% as of 30.06.07 which as
a matter of concern for the State. They should improve their CD Ratio. Except Canara
Bank, IOB, PNB, Syndicate Bank, none of the Banks have achieved the National Parameter
under DRI and are advised to achieve the National Parameter of DRI, i.e. 1% of total
outstanding advance of the previous year.
The CD Ratios of the Districts have been improved. LDMs of Gajapati,
Jagatsinghpur, Kandhamal, Koraput, Malkangiri, Nuapada, Rayagada and Sambalpur
should take all possible steps to improve their CD ratio.
The percentage of PS Credit to total Advance as on 30.06.07 is commendable.
Action : Banks mentioned above / LDMs of Gajapati, Jagatsinghpur,
Kandhmal, Koraput, Malkangiri, Nuapada, Rayagada & Sambalpur.
Agenda Item No. - 5
Recovery
The over all recovery position as on 30.06.07 is very poor. The percentage of
recovery of IRDP/SGSY and PMRY as on 30.06.2007 were 33% and 20% respectively and
requires considerable improvement. Govt Deptts. may have joint strategies to improve the
performance of recovery for better recycling of funds. The Govt. Machineries were
requested to render adequate help and assistance in organising recovery camp to improve
the performance of recovery for better recycling of funds.
Action : Banks / Govt. Line Deptt.
Agenda Item No. - 6

32. 33
Review of performance under Annual Credit Plan as on 30.06.07
The performance of Banks as a whole under Allied Sector (under Agriculture) needs
improvement.
The performance of the district like Deogarh, Jharsuguda, Mayurbhanj, Nayagarh,
Puri require improvement. The LDMs of the concerned district should take all possible
measures to improve the performance of their district and achieve the target for 2007-08.
LDMs should take a note that Credit Flow to agriculture and allied sector, SSI &
SME, SHGs, REGP under KVIB & KVIC are to be enhanced to a considerable extent in their
districts.
Action : Banks / LDMs and Govt. Line Deptt.
Agenda Item No. - 7
Under doubling of Agriculture Credit as on 30.06.07, the achievement being 120%
for all Banks was satisfactory. It is high time the private sector banks which have not yet
started lending under Agriculture Sector, should come forward to lend to Agriculture
sector to boost the economy of the state.
Action : Private Sector Banks.
Agenda Item No. - 8
Review of Performance under PMRY & SGSY
It is worthwhile to mention that, the performance of Banks in implementation of
PMRY 2006-07 was satisfactory. As of 30.06.07, the percentage of disbursement to target
was 93% which was highest taking into account the performance of disbursement to
target in last 10 years.
SGSY Schemes is to be successfully implemented by the Banks. Credit subsidy ratio
should be increased to 3% from 2.25% under SGSY during the financial yr. 2007-08
Banks have to achieve the physical as well as credit mobilization target. No applications
should be kept pending beyond 15 days at branch level.
Action : Banks & Govt. Line Deptt.
Agenda Item No. - 9

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Progress under SJSRY (Swarna Jayanti Sahari Rojgar Yojana)
Banks have to implement the scheme with all sincerity and commitment to uplift
the urban poor above the poverty line and target for 2007-08 under SJSRY has to be
achieved by each bank operating in the State.
Agenda Item No. - 10
Progress under Self Help Groups (Mission Shakti)
During 2006-07, Banks have done a commendable job by credit linking good
number of WSHGs.
Banks operating in the state assigned with target of financing WSHGs during
2007-08 have to achieve the target and should give highest importance in financing
WSHGs for empowerment of Women as our social objectives.
Banks should take proactive steps to increase credit amounting to Rs. 45000/- to
each SHG as decided in the meeting.
The Private Sector Banks may be entrusted with financing urban SHGs. The dist-
wise data will be submitted in simplified format to Mission Shakti Deptt. as well as to SLBC
from March 2005 onwards on quarterly basis.
Action : Banks / Govt. Line Deptt./LDMs.
Agenda Item No. - 11
The performance of Banks under SC/ST/Scavenger/ITDA and financing under
REGP/KVIB/KVIC
a) Banks should lend more and more to SC/ST borrowers so that there should be
adequate Credit Flow to SC/ST sector. The SHGs sponsored by OSCSTDFCC
Ltd./OSFDC under SC/ST/Scavenger should be financed with utmost sincerity as an
objective of increasing credit flow to women as well as to SC/ST sector.
Action : Banks / OSCSTDFCC Ltd.
b) All the pending applications under KVIB & KVIC are to be disposed of at the
earliest. Banks have to follow scrupulously guidelines regarding adjustment of
margin money of REGP of KVIB/KVIC. Under KVIC, Banks should achieve the
quarterly target which has been circulated.

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Action : Banks / KVIC / KVIB / Govt. line Deptt.
Agenda Item No. - 12
Performance under SCC/ACC/KCC
The Commercial Banks have to issue KCC to all eligible farmers. The performance
of Banks under ACC is not at all satisfactory. Against the annual target of 9200 ACC, the
Banks have issued only 1116 from 1.04.07 to 30.06.07, under SCC the Banks have issued
5443 against the annual target of 40000 from 01.04.07 to 30.06.07.
Banks were requested to take all possible measures to achieve the targets under
ACC, SCC & KCC for the year 2007-08.
Action :- Banks and Govt. line Deptt.
Agenda Item No. - 13
Performance under Pisciculture
All the pending eligible proposals under pisciculture should be sanctioned and
disbursed as early as possible. Banks should sanction Short Term Credit just like Crop loan
in agriculture to fish farmers to augment fish production in the state.
The Banks operating in the state may finance various pisciculture scheme such as :
(1) Development of fresh water Aqua Culture, (2) Development of Brackish Water
Aquaculture, (3) Development of Water logged areas (4) Integrated Development of
Inland Capture Resources (Reservoirs/Rivers etc.) as approved by Govt. of India is to be
given priority.
Action : Banks & Govt. Line Deptt.
Agenda Item No. - 14
Banks have to improve their performance and correct reporting should be made by
the Banks in respect of National Housing Loan, Housing Loan, Rural Housing Finance,
Finance to Ex-Service Man, Finance to Minority Community.
Agenda Item No. - 15
Education Loan

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In education loan, every bank has to keep in mind the directions given by the
Hon'ble Union Finance Minister that :-
"No eligible student should forego higher education for want of money."
Banks should give priority to Education loan and finance more & more to this
sector.
Agenda Item No. - 16
Progress under National Horticulture Board
To promote integrated development of Horticulture in Orissa, Banks were
requested to dispose of the applications sponsored by 'NHB' as early as possible.
● The minutes of the meeting of Sub-committee of SLBC on Export Promotion
in the state held on 18.09.2007 was placed and ratified by the SLBC. Banks,
concerned agencies, Govt. line Department were requested to implement
the decisions taken in the meeting.
Action : Banks, Export Associations & Govt. line Deptt.
● The minutes of the Small Committee meeting of SLBC for financing WSHGs
& other related issues held on 06.10.2007 was placed and ratified by the
SLBC. Banks, concerned agencies, Govt. line Department were requested to
implement the decisions taken in the meeting.
Action : Banks, LDMs, NABARD & Govt. line Deptt.
The minutes of the meeting of Steering Committee of SLBC held on 20.09.2007
was placed and ratified by the SLBC. Banks, concerned agencies, Govt. line Department
were requested to implement the decisions taken in the meeting.
Action : Banks, Concerned Agencies & Govt. line Deptt.
At the end, Shri V. K. Upadhyay, General Manager, Head Office, Kolkata proposed
vote of thanks to Shri Pawan Kumar Bansal, Hon'ble Minister of State, Finance (E&FS),
Govt. of India; Shri P. C. Ghadai, Hon'ble Finance Minister, Orissa; Shri S. K. Goel, CMD,
UCO Bank and Chairman, SLBC, Orissa; Dr. R. N. Bohidar, Addl. Chief Secretary-cum-

36. 33
Development Commissioner, Orissa; Shri S. P. Nanda, Agriculture Production
Commissioner, Orissa; Shri R. N. Senapati, Principal Secretary to Govt., Finance Deptt.,
Govt. of Orissa; Shri G. Jagan Mohan Rao, Regional Director, RBI, Bhubaneswar; Shri K.
Sudhakar, CGM, Reserve Bank of India, Mumbai; Shri A. Bhattacharjee, Director, DRT &
Development, Govt. of India; Shri S. A. Kareem, Chief General Manager, NABARD,
Regional Office, Bhubaneswar; Shri M. N. Rao, Chief General Manager, SBI, LHO,
Bhubaneswar; Shri K. S. Singhwan, Chief General Manager, SIDBI & Shri R. K. Mukherjee,
General Manager, Orissa & Convenor, SLBC & participants from the Government, other
agencies and Banks who have spent heir valuable time in 111 th SLBC meeting by taking
important decisions which will certainly support in a big way in building of Modern
Economically vibrant Orissa where large chunk of people will have a better living by taking
up sustainable economic activities.
He requested all the banks to cover the State, under 100% Financial Inclusion by
providing each family a Credit Card either by way of KCC or GCC because opening of No
Frill Account is not an end for Financial Inclusion.
In the past, bankers had taken decisions to close the saving bank account having
balance of Rs. 5, Rs. 10, Rs. 15, Rs. 20/-. He requested bankers to provide KCC to all the
eligible farmers, including share cropper as 80% of the people live in village area and they
are dependant upon Agriculture & allied activities or handicraft etc.
He requested Bankers and Deptt. of Agriculture, Govt. of Orissa to lend full support
to the farmers as the economy of the state is agrarian.
He stressed upon the bankers to finance liberally to the farmers who are the
backbone of the country.
He once again thanked everybody by saying JAI SLBC, JAI KISSAN.
"We transform vision to reality"
"Our Culture, Agri-Culture."