1. PROCEEDING OF 120TH SLBC MEETING HELD ON 26.05.2010
AT BHUBANESWAR
The 120th SLBC meeting of Orissa was held on 26.05.2010 at Bhubaneswar under
the Chairmanship of Shri S.K Goel, CMD, UCO Bank and Chairman, SLBC, Orissa.
Among others it was attended by Hon’ble, Finance Minister, Orissa, Shri P.C
Ghadai, Shri R N Senapati, Agriculture Production Commissioner, Govt. of Orissa,
Shri B.K Bhoi, Regional Director, Reserve Bank of India, Bhubaneswar; Shri P.C
Sahu, Chief General Manager, NABARD, Regional Office Bhubaneswar; Ms. Jostna
Jamkhandi, General Manager, SBI, 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
S.K Goel, CMD, UCO Bank and Chairman, SLBC,Orissa; Shri R. N. Senapati,
Agriculture Development Commissioner, Govt. of Orissa, Shri B.K Bhoi, Regional
Director, Reserve Bank of India, Shri P.C Sahu, Chief General Manager, NABARD,
Regional Office, Bhubaneswar and other dignitaries off and on the dais to the 120 th
SLBC meeting.
In his welcome address, he observed as follows:-
• SLBC, Orissa is the only forum for development of the State. We are also
the Convenor of SLBC in Himachal Pradesh. We are glad that only State
Himachal Pradesh has achieved 100% Financial Inclusion in the Country as
Convenor of SLBC. Kindly support us and cooperate. We want that goal
should be achieved. Stimulus package of Govt. should be properly worked
out. Economic down turn of 2008-09 is likely to be rolled back is now
regaining.
• RBI in its Plan 2010 raised th3e Key of Inter Bank lending at following rules
raise the reserve ratio by 5 basic points. Ratio rate and Reverse Repo and
Reservations – 5.75, 3.75 and 6%. During March Inflation Rate remain at
double digit figure in 13.5%. Inspite of Global economic crisis, Banks have

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done well and increased their profitability in 2010-11. SME in the fastest
growing segment and generating 30% job and adds 18% to GDP.
• Mission Shakti Programme in Orissa is a holistic programme. More than 5
Lakh women SHG and 17000 Crores of Rupees. Micro Finance is doing well
and rapidly. Rapid growth is also a cause of concern for many as unbundled
loan will lead to degradation of assets quality. Branch network has
significantly shown a growth of 160 branches in the State.
• Aggregate deposit has increased by 10899 Crores with a increase of growth
rate of 23.93%. The trade deposit increased 64.42% to 65.21% as on 31st
March as against rational norm of 60%,
• Share of Agriculture is 31.59% as against 18%. MSME has shown a sharp
increase of 56.77% as on March, 2010. It is one of the best in the country
and ACP against annual target Rs.11500 Cores, achievement is Rs. 11142
Crores, achieving 97% of the target, which is one of the best of the country.
• Establishment of Rudsetti, every Bank should look and every district is
established a Rudsetti. RBI has taken all possible steps for financial
literacy in the country. Financial literacy empowers the poor, those who are
at the bottom. It also increase the economic space of down trodden, at the
bottom of Pyramid.
• “ A dream of equality of opportunity of privileged and prosperity” -
Martin Luther King.
HIGHLIGHTS OF THE SPEECH OF HON’BLE FINANCE MINISTER, GOVT. OF
ORISSA SHRI P.C GHADAI
• It is pleasure for me to be associated with you all present here and with the
review of various schemes implemented by Banks and poverty alleviation

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programme implemented in the State. I must reiterate the credit is an
important input that helps the farmers, the small entrepreneurs, need
support from farmers. Investors also need support from farmers. Efforts
should be made for recognition to the credit support to the farmers.
Investment by farmers is a planned intervention by the Govt. Our effort
should be for expanding the reach of formal credit to farmers of Rural poor.
But in the context of CD Ratio. I would point out that although CD Ratio of
all Banks in the State is 65.21% increase is not upto satisfaction. In some
Banks it is below 50%. Banks like Canara Bank, Corporation Bank, IDBI Bank,
Punjab National Bank, Punjab and Sind Bank, Syndicate Bank, Union Bank,
Vijaya Bank, ICICI Bank, Indusind Bank, Baitarani Gramya Bank, and
Rushikulya Gramya Bank have CD Ratio of below 50% as on 31.3.2010.
Leading Banks like BOI, IOB, OBC have below national parameters of 60%
(CD Ratio).
I request all present here to surpass the national parameters of CD Ratio. As
regards MSME development strategies, the Industrial Policy Resolution –IPR-2001-
the robust Policy frame work. IPR-2007 aims at further forcing up the process.
Requirement and development of MSME is focused on MSME development Policy –
2008. % of SME advance to total Advance is only 15.04% as on 31.3.2010. Credit
is to the tune of 8490.89 Crores indented in this section. Similarly percentage of
MSME advance to total advance is 12.80%. Total MSME advance is to the tune of
7228.33 Crores as on 31.3.10. Agril. And Allied though there have been progress,
% of Agril. Advance to total advance is 31.59% as on 31.3.10 as against national
parameter of 18%. Those who are legging behind are requested to achieve and
improve. Banks like BOI, Bank of Baroda, Canara Bank, Syndicate Bank, Dena Bank,
Corporation Bank, IDBI Bank, PNB, SBI, Indian Bank are below the national

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parameters. Pvt. Banks like ICICI Bank, Axis Bank are always far behind and at low
level. 0% Banks are there. You try to correct yourselves and come to main stream.
Handloom and Handicraft - This sector provides a very key progress to economy.
This sectors provides and generates e4mployment. Chief Minister of Orissa
announces a special package for Handloom weavers. Banks are requested to
enhance flow of credit to this section.
Micro Finance - Banks have a major role to play. Act as a credit provider and then
as a chase Agent. Money lenders are charging a very high rate of interest from
poor farmers. SHG groups, training should comprise of their business, their
product. They should acquire knowledge. I request all of you to redesign your
business strategies to promote specific financial inclusion as corporate social
responsibility. Financial Inclusion will lift the financial condition of the poor of my
State.
As regards SHG, Bank linkage scheme can be regarded as most potent incentive,
since independence. There are large numbers of SHGs in the country. Savings
from members of SHG teaches financial management. I say to Pvt. Sector Banks
though their CD ratio is above 60%, finance to Agril., finance to weaker section,
finance to DRI is far below the stipulations of RBI. In case of some Pvt. Sector
Banks it is seen that to be nil.
In last SLBC meeting it was discussed at length. Pvt. Sector Banks are requested
to improve their finance in these sectors. Otherwise I have to rethink and l shall
be forced to issue directions to Govt. Agencies of Public Sector Undertakings,

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Semi Govt. Agencies not to park their surplus fund with these banks. Again I
remind all of you to cooperate and be liberal to extend credit to various sectors.
Another point, NREGA Programme has been adopted in whole country. Govt. wants
to stop corruption and we want to make NREGA payment through banks. So BC
Model to be adopted every where. Only SBI has adopted. They are helping the
Govt. to facilitate payment through their agencies. Still other Banks are
hesitating. All Regional Heads are there. I request to adopt this BC Model. Thank
to SBI and other Banks should adopt. I request to all those who are legging behind
please correct yourselves. Let us all join our hands for progress of the State. So
far fiscal development is concerned; we are much ahead of other State. Right
from CM to Official of the State, we all work for development of economic condition of
the State. The spheres where we are legging behind few years back, now we are developing.
Now we want to be No.1 State of the country. Banks are required to play a very key role, a
dedicated role, a committed role to be rich. State is very rich. But people are very poor. People
of a rich State should be rich.
HIGHLIGHTS OF THE SPEECH OF SHRI R. N. SENAPATI. IAS AGRICULTURE
PRODUCTION COMMISSIONER, GOVT. OF ORISSA.
State Level Bankers Committee is a forum where we discuss various issues connected with the
socio economic development of the State. I find that we should concentrate broad policy issues
rather than Micro Finance issues in the Agenda. One thing, I would like to high light that CD
Ratio has been declining might be due to Global recession. There has been recovery. Our CD
Ratio is improving. But if we compare the CD Ratio of Dec, 2009 and March, 2010, the CD
Ratio is decline. CD Ratio is still a matter of concern. As Finance Minister told some Pvt.
Sector Banks and Commercial Banks are legging behind and discouraging. So we have to
increase CD Ratio, otherwise investment will not be there in the country. This is No.1. Second
thing is Priority Sector advance of quarter ending December, 2009 and March, 2010. It is also
declining from 65% to 60%.

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Besides, issues which Chairman, UCO Bank and Finance Minister has raised that is Financial
Inclusion. RBI is also very keen on this issue. So we should assure 100% Finance Inclusion.
District has been divided among different Banks. So they must ensure that all the villages are
covered. Hon’ble Finance Minister also points out regarding NREGA payment through Banks.
Not only NREGA payment but also various payments of Govt. Department is also made through
Banks. SBI has come forward to take some Panchayat. All Banks should come forward to take
all the Panchayats, where there is a will there is a way. We should achieve 100% Financial
Inclusion. We can short out various issues.
HIGHLIGHTS OF THE SPEECH OF SHRI B.K BHOI, REGIONAL DIRECTOR, RBI,
BHUBANESWAR
I have joined as R.D, RBI. I took charge on 26th April. Earlier I was RD, RBI for UP and
Uttarakhand. I look forward to work with you in a fruitful manner. SLBC is a unique forum
where regular that is RBI, Top Govt. Officials and Banks meet. Our State is going down and
down, what I read from News Papers. This gives me great sense of anguish. Our State is rich.
People are very laborious. Despite such richness why our State will go down and down. I assure
you all cooperation from RBI.
Agenda-wise discussion
LDM Nabarangpur and Malkangir raised the issue of facing problem in achieving 100%
Financial Inclusion. Shri R.N Senapati told we will talk to the Collector. LDM asked to enhance
the cash holding of Banks. They face many problems due to low cash holding. Shri R.N
Senapati told Finance Department will also pursue. Let us achieve 100% Financial Inclusion by
31.3.2011. You (LDM, Malkangiri) have done excellent job in Nabarangpur. Some more effort
requires for Malkangiri. We should be No. 2 State in the country. DIF will dispatch a letter
under my signature on Secretary, Finance. I will follow Malkangiri specially.
Roadmap was finanalised on the spot.
Action taken report discussed Point-wise.

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No. 12 - K.C Chakraborty Committee on.
LDM Mayurbhanj - At what time Margin Money to be released? Nearly Rs.1 Crore amount is
pending in PMEGP.
Nearly 150000 – Handicraft artisans are there. Only 7500 – ACC has been issued. So I request
the bankers to issue more and more ACC Cards.
ISHUP – Issue raised by LDM, Nabarangpur
Shri R.N Senapati told that let us unanimously try for development allied activities. Poverty can
not be elevated through wage employment. Wage employment is only for sustenance. We have
to give tremendous emphasis on allied sector.
Agenda No. 7
Shri R.N Senapati told that for reconciliation the deadline is 30.6.10. Interest rate charged by
MFI. No regular. RBI should pay interest for regulation of interest.
Agenda No. 8
No. 14 - Shri R.N Senapati told that Banks please try to sanction and disburse the sponsored
applications. If there is dearth of application please mobilize applications on this sector.
No. 16 - The Director, NHB told that we have sponsored 1960 applications. Only 350 loan
sanctioned. So pendency is very high. Cashew Processing Units need long Term loan to be
sanctioned.
Shri R.N Senapati told that There is a tremendous potential in this sector. There is vast scope in
Horticulture. So, I think we should concentrate more and more in this sector. We have to focus
right from Horticulture where there are vast scopes. Sub-Committee of Agriculture to review the
credit flow to Horticulture regularly. Lot of insensitive are there. Tie up is missing. Sufficient
number of applications can be sponsored. We are discussing sufficient credit flow to this sector.

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Agenda No. 18 – Reverse Mortgage Scheme - This scheme is not picking up to the mark.
Shri R.N Senapati told that sufficient publicity should be there.
At the end Mr. C.P. Das, Chief Officer, SLBC, UCO Bank proposed vote of thanks
to the Chair as well as participants.