Andhra Bank took over the Convenorship of SLBC from State Bank of India in 1984 and since then 170 SLBC meetings were organized by the bank in the State besides several meetings of the Standing / Steering Committee.

President : Sri R.S.Reddy, Chairman and Managing Director, Andhra Bank

Convener : Sri Y.Prasad, Dy. General Manager, Andhra Bank

LEAD BANK RESPONSIBILITY

Andhra Bank is having Lead Bank responsibilities in six districts of the country

Lead Districts:

In Andhra Pradesh:
1. Guntur        2. West Godavari      3. East Godavari   4.Srikakulam.

In Orissa:
1. Ganjam     2. Gajapathi

In all the Six districts, District Credit Plans for the year 2010-11 were launched, as per time schedule.

Activities of SLBC

• Take up issues raised by member banks or state Govt. authorities and resolve them.
• Analyze the deposits and advances of banks and review the credit deployment position for improving it wherever, it is unsatisfactory.
• Serve as a focal point of the banking system for securing better liaison with the state government authorities. The SLBC shall liaise with the Secretary (Institutional Finance) of the State for contact in the matters relating to the implementation of Lead Bank Scheme / Government sponsored schemes and related matters.
• Serve as the clearing house in respect of Inter Institutional Coordination problems remaining unresolved at the level of district consultative committee.
• Consolidate all the District Credit Plans and prepare State Credit Plan, launch and monitor the progress of its implementation.
• Regularly review the District Credit Plans and its implementation and ensure appropriate follow up action to see that the plan implementation is in accordance with the time schedule envisaged.
• Very useful forum for reviewing the flow of credit to sponsored schemes of both central and state governments and allocate shares to Banks.
• Regularly review the progress made under various Government Sponsored Programmes of poverty alleviation and monitor its progress through Lead District Managers stationed at the District Head quarters.
• Coordinate various meetings in connection with Bankers in the State.
• Maintains liaison with various Government departments on behalf of Banks in the State and represent problems of the member Banks to the Government for solution.

Meetings Convened by SLBC during the year 2010-11 (01.04.2010 to 20.05.2010):

So far a total of 3 meetings were convened during the year. The details of meetings are given below.

1. 2 Steering Committee Meetings
2. SLBC meeting on 12.05.2010.

Meetings are being convened on various subjects viz:

• Credit Flow to Agriculture and allied Activities.
• Review of Govt. sponsored schemes.
• Review of Financing to SHGs (Rural and Urban)
• Agriculture Debt Waiver and Debt Relief Scheme,2008
• Financing to Tenant Farmers - Formation of Rythu Mithra Groups – Financing Tenant Farmers through Rythu Mithra Groups (RMGs)
• Issues relating to Pattadar Pass Books
• MSME advances –Problems being faced by the MSME Sector in the State of Andhra Pradesh in view of the Global Recessionary trends and steps to be initiated by Banks and Government
• Implementation of CGTMSE Scheme
• Issues relating to Housing Sector, Education and other Priority Sectors
• Issues relating to Export Sector
• Un banked Mandals in the State and providing banking services in all the villages with population of above 2000.
• Financial Inclusion in Andhra Pradesh & providing Banking Services in Un Banked Areas – role of banks

Meetings convened by  Govt. of A.P, RBI and other Organizations

Besides the above meetings, the Convenor, SLBC participate in the various Meetings  and Videoconferences that are being organized by Government of Andhra Pradesh, RBI, NABARD and various other Organizations on different subjects.

District Consultative Committee meetings:

The Convenor, SLBC attends DCC meetings of some districts to interact with the district level officials and to observe the gross root level issues, if any.

District Level Review Committee (DLRC) meetings:

District Level Review Committee (DLRC) meetings are being convened regularly at quarterly intervals in all the districts in the State, where the public representatives viz: Hon’ble MPs / MLAs / Zilla Parishad Chairmen attend the meetings. This is the right platform to discuss field level issues, to interact with the public representatives, to draw a plan of action with the suggestions of the public representatives for the development of the District.

ANNUAL CREDIT PLAN

REVIEW OF ANNUAL CREDIT PLAN

ANNUAL CREDIT PLAN IN A.P
FOR THE YEAR
2010-2011

Annual Credit Plan Highlights of 2010-11

• An amount of Rs.82,351 crores projected towards Credit Plan for the year 2010-11. Out of which Rs.65,763 crores is towards Priority Sector Advances and Rs.16,588 crores towards Non Priority Sector Advances. NABARD projection towards Priority Sector Advances is Rs.60,904 Crores for the year 2010-11.
• Total Priority Sector Outlay is projected with an increase of Rs: 8,842 crores over the achievement and Rs: 10,263 crores over the last year’s target, with 18.49 % increase.
• Under Agricultural Sector an amount of Rs:41,913 crores is projected for the year 2010-11, with net increase of Rs:9,413 crores with 11.55 % increase over last year’s achievement.
• On comparing the plan outlay for the last six years, it may be observed that the outlay was increased from Rs: 23,480 crores in 2004-05 to Rs: 65,763 crores during this year i.e 2010-11 towards Priority Sector Advances.

Production Credit:

• An amount of Rs:26,261 crores is projected for the year 2010-11 under Crop loans, against the disbursements of Rs: 24,845 crores during the year 2009-10.  Major credit flow is for paddy followed by Ground Nut and Sugarcane.
• The outlay of crop loans was increased from Rs: 11,205 crores in the year 2004-05 to Rs: 26,261 crores under the Credit Plan for the year 2010-11. Our State Performance under Crop loans in the year 2004-2005 is Rs.10,286 crores which has increased to Rs.24,845 crores in the year 2009-10.

Agricultural Term Loans (including allied activities & CMSA) :

• An amount of Rs: 15,652 crores is projected under the Credit Plan for the year 2010-11 against the target of Rs: 9,000 crores during the year 2009-10 and achievement of Rs:12,728 crores with increase of 22.97 % over last year’s achievement.
• More thrust is given to Minor / Micro Irrigation with allocation of Rs: 896 crores.   Farm Mechanisation is given due importance with total outlay of Rs: 1,602 crores as Agriculture is facing lot of labour shortage for Agricultural Operations and for Plantation & Horticulture is Rs: 746 crores which is focused area for the State.
• More thrust is given for Dairy Development with projections of Rs:2,599 crores, an amount of Rs:1,015 crores is allocated for Poultry,  Rs: 331 crores for Sheep, Rs: 528 crores for Fisheries Development and Rs: 2,544 crores for Storage & Marketing/others facilities during the year 2010-11.

Non-Farm Sector (Rural Artisans/Tiny Sector/SSI):

• An amount of Rs: 8,150 crores is projected under the sector for the year 2010-11 against the target of Rs: 8,000 crores in the year 2009-10.
• An amount of Rs: 378 crores allotted to Handloom Sector, Rs: 431 crores to Rural Artisans, Rs: 448 crores to Tiny Sector & Rs: 327 crores to Village Industries and with major share of Rs: 4,504 crores under Small Scale Industries.
• Major focus of lending will be on SME. 32 centres are identified in various districts and 5 cluster centres in Hyderabad city.

Other Priority Sectors:

• Other Priority sectors consisting of Transport Operators, Retail/Small business sector, Professional & Self employed persons, Housing Loans, Educational Loans, Consumption loans and SHGs.
• Much emphasis is given to the service sector consisting of small borrowers, with plan outlay of Rs: 15,700 crores for the year 2010-11,   against the target of Rs: 15,000 crores in the year 2010-11.
• An amount of Rs: 4,690 crores is earmarked for Housing Sector.  An amount of Rs: 1,868 crores is projected for the year 2010-11 for Educational Loans.  Self Help Groups are given greater importance with an outlay of Rs:11,776 crores projected under the plan for the year 2010-11.

Bank-wise allocations of Credit Plan 2009-10 (exclusive of CMSA target of Rs.4,078 crores)

• Priority Sector Advances : Out of Total Priority Sector Advances target of Rs.61,685 crores (exclusive of CMSA target), the share of Public Sector Banks is 69.27 % with an amount of Rs: 42,726 crores,  Private Sector Bank’s share of Rs: 3,828 crores i.e 6.21 %, share of Regional rural Banks is Rs. 8,089 crores i.e 13.11 %  and Co-operative Banks share of Rs: 6,116 crores ( 9.91 %) and Other Financial Institutions share is Rs.926 crores i.e.1.50 %.
• Non –Priority Sector Advances :  Out of Total Non Priority Sector Advances target of Rs.16,588 crores, the share of Public Sector Banks is 83.31 % with an amount of Rs: 13,819 crores,  Private Sector Bank’s share of Rs: 1,490 crores i.e 8.98 %, share of Regional rural Banks is Rs. 1,147 crores i.e 6.91 %  and Co-operative Banks share of Rs: 104 crores i.e 0.63 % and Other Financial Institutions share is Rs.27 crores i.e.0.16 %.

The Major share of Credit Plan 2010-11 is from the following Banks:

The major share of Agricultural Credit under the plan 2010-11 is from the following Banks:

Note : The major share of allocations is from Public Sector Banks with 64.21% followed by Regional Rural Banks (16.28 %) and APCOB   (15.50 %).

Government Sponsored Schemes :

Number of Government Sponsored Schemes are being implemented successfully through banks in the State.

Centrally Sponsored Schemes :

• P M E G P – to support self employment schemes to youth in Rural /Urban / Metro areas.
• Swarna Jayanthi Gram Swarojgar Yojana (SGSY) -  in rural areas.
• Swarna Jayanthi Shahari Rozgar Yojans (SJSRY) -  in Municipalities.

And also Programmes through :

• A.P. State Scheduled Caste / Scheduled Tribe / Backward Classes /Minorities / Disabled Welfare /Women Welfare Corporations.
• Society for Elimination of Rural Poverty (SERP) – VELUGU
• KVIC / KVIB
• Sericulture
• Horticulture
• Self Help Groups etc.,

The following schemes are State Specific :

• Andhra Pradesh Micro Irrigation Project (APMIP) – to encourage drip / Sprinkler Irrigation Schemes for maximum utilization of available water.
• Rajiv Yuva Shakthi (RYS) – Supporting the youth for Self-employment.  A successful scheme in the State.
• Indiramma Housing Scheme –An affordable Housing Scheme to urban poor- economically weaker sections.
• Financing Rythu Mithra Group (RMGs): To facilitate the tenant farmers besides Small & Marginal Farmers to access bank credit the Rythu Mithra Group mode is introduced in the State and it is being implemented.
• Urban SHGs – IKP Urban (MEPMA)
• Rajiv Internet (Rural Kiosks) Scheme

BANKING KEY INDICATORS OF ANDHRA PRADESH

CREDIT PLAN - HIGHLIGHTS - IN BRIEF
(ACHIEVEMENTS FOR 2009-10 & PROJECTIONS FOR 2010-11)

• Total Number of bank branches in the State as on 31.03.2010 are 7,676 ( Rural- 2,857, Semi Urban – 1,941, Urban – 1,922 and Metro – 956).During the year 2009-10, all banks have added 677 branches out of which the increase is 124 branches in Rural, 187 branches in Semi- Urban, 321 branches in Urban and 45 branches in Metro areas.
• Deposits at the end of March 2010 are Rs:2,45,686 crores with growth rate of 19.32% during the year with net increase of Rs:39,787 crores.
• Advances are Rs: 2,69,760 crores at the end of March 2010 with growth rate of 28.28 % with net increase of Rs: 59,466 crores.
• Credit Deposit Ratio: CD Ratio as on 31.03.2010 is 109.80 % (previous year 102.13%) against the RBI norm of 60%.
• Incremental CD Ratio as on 31.03.2010 is 149.46 %.
• State Credit Plan: An amount of Rs:56,921 crores was achieved under the State (Annual) credit plan for the year 2009-2010 against the target of Rs.55,500 Crores (102.56 % of the target). The credit plan for the year 2010-11 is to achieve Rs.65763 crores under Priority Sector advances. However the total State Credit Plan works out to Rs.82,351 crores including Rs.16,588 crores under Non-Priority Sector Advances.
• Priority Sector Advances: at the end of March 2010 are Rs: 1,26,515 crores constituting 46.90% of advances against RBI norm of 40 % .
• Agricultural Advances: at the end of March 2010 are Rs:68,658 crores constituting 25.45% of total advances against RBI norm of 18 %. Net increase of agricultural advances during this year is Rs: 17,171 crores.
• Coverage of New Farmers & Tenant Farmers: Banks have disbursed crop loans to 7.55 lakh New Farmers with an amount of Rs:2,416 crores during the year 2009-2010 and 1.33 lakh Tenant Farmers were extended credit of Rs.162.26 crores by covering 10,158 Joint Liability Groups. During FY 2010-11, it is proposed to cover 20.00 lakh new non loanee farmers for crop loans @330 per Bank Branch including 10.00 lakh Tenant Farmers to form Joint Liability Groups.
• Kisan Credit Cards: 86.43 lakh farmers have been issued Kisan Cards upto the year 2009-10.
• Crop Loans: An amount of Rs.24,845 Crores was disbursed during the year 2009-10 i.e. 105.72 % of target of Rs.23,500 Crores. For the year 2010-11, it is proposed to disburse crop loans of Rs: 26,261 crores.
• Agricultural Term Loans including allied activities : An amount of Rs: 12,728 crores was disbursed during the year 2009-10. It is proposed to disburse Rs: 15,652 crores during the FY 2010-11

As per the District Credit Plans the target for 2010-11 for Agricultural Advances is Rs.37,835 crores (  Crop Loans - Rs.26,261 cr & ATLS incl.Allied activities – Rs.11,574 crores).

Hon’ble Union Finance Minister in his budget speech for the year 2010-11 has set ground level target for agriculture at Rs.3,75,000 crores at all India Level of which a target of Rs.40,000 crores is allotted to Andhra Pradesh State.  Of which Crop Loans are allotted Rs.23,800 crores and term loans are  Rs.16,200 crores.

In Andhra Pradesh State, during 2010-11 Community Managed Sustainable Agriculture (CMSA) initiative by Society for Elimination of Rural Poverty (SERP) extending Bank Finance to the extent of Rs.4,078 crores.

In our State Credit Plan taking above factors into consideration, the crop loan target for 2010-11 is Rs.26,261 crores and Rs.11,574 crores towards Agrl.Term Loans including allied activities.

Though the Annual Credit Plan 2010-11 is targeted for Rs.11,574 crores towards Agrl.Term Loans including allied activities, the gap of Rs.4,078 crores will be covered under CMSA.  With this the target is Rs.16,200 crores for Agrl.Term Loans incl.allied activities.  This intoto, under Agricultural Sector, the plan works out to Rs.41,913 crores.

• Non-Farm Sector (Small Scale Industries / Rural Artisans): Disbursed Rs:7,148 crores  ( 89.35% of the target) during the financial year 2009-10.  It is proposed to disburse Rs: 8,150 crores during the year 2010-11.
• Other Priority Sector (service Sector): Under this sector (Small business / Professional & Self Employed, Housing / Education etc.,) an amount of Rs.12,200 Crores was disbursed (81.33 % of the target).  An amount of Rs: 15,700 crores is projected for the year 2009-10.
• Non Priority Sector Advances :  Proposed target for 2010-11 is Rs.16,588 crores.
• Handloom Weavers: An amount of Rs.378 crores is projected to finance Handloom Weavers/ Powerlooms during the financial year 2010-11.
• Educational Loans: Amount outstanding under this sector at the end of March 2010 is Rs: 5,385 crores.  An amount of Rs: 1,868 crores is projected for the year 2009-10.
• Housing Loans: Outstanding at the end of March 2010 is Rs: 21,961 crores.  An amount of Rs: 4,690 crores is earmarked for Housing Loans during the year 2010-11.
• Self Help Groups:  4.13 lakh SHGs (61.95 lakh members) were financed with an amount of Rs: 6,501 crores during FY 2009-10.  It is proposed to disburse an amount of Rs: 11,775 crores during FY 2010-11.  Present outstanding is Rs.11,764 crores.
• Urban Self Help Groups:  IKP Urban (MEPMA) :  As on 31.03.2010, 1.08 Lakh SHGs were financed with an amount of Rs: 1,267 crores.  It is proposed to disburse an amount of Rs: 1,747 crores during the year 2010-11.
• MSME Advances :  Outstanding loans of MSME advances at the end of 31.03.10 are Rs: 28,142 crores.  An amount of Rs: 20,100 crores is projected for the year 2010-11.

Govt. sponsored Schemes :

Total outlay of Rs: 15741 crores is earmarked with Bank Loan portion of Rs: 14,870 crores for disbursement, with subsidy/margin money amount of Rs: 871 crores under all Govt. Sponsored Schemes during the year 2010-11.

• A P Micro Irrigation Project (APMIP) :  Under this programme  it is proposed to cover 22.50 lakh hectares  with financial outlay of Rs: 1088.47 crores with subsidy amount of Rs: 775.29 crores during the year 2010-11. As the rainfall is decreasing, focus is more financing for Drip & Sprinkler Irrigation to ensure optimum utilisation of water resources.
• P M E G P: 5320 units is projected to finance to unemployed youth under the scheme with total outlay of Rs.280.75 crores during the year 2010-11.
• Rajiv Yuvasakthi (A State Sponsored scheme to support un-employed youth): It is proposed to finance an amount of Rs: 50.00crores (total outlay), with bank loan portion of Rs: 35.00 crores for 2010-11 there by 5000 persons will be provided with self employment opportunity.
• Indiramma Urban: (A State Sponsored-affordable housing scheme for urban-economically weaker sections) – During the year 2010-11, it is proposed to finance 2,04,081 houses with total outlay of Rs: 612.00 crores towards INDIRAMMA Urban .
• Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) – IKP Urban : Total outlay of Rs.1,747 Crores is projected for the year 2010-11 which includes Rs.1600 crores under regular SHGs and Rs.400 crores under TFI (25% of Annual target.)
• A.P.Minorities Action Plan : Bank linked Government Sponsored Schemes are projected with Rs.10.50  Crores to  1750 units during the year 2010-11.
• The outstanding credit Minorities as on 31.03.2010 is Rs: 8,502 crores (6.72% of total Priority Sector advances).  Ministry of Finance, Govt. of India advised all banks to increase credit flow to minorities and opening of branches in the minorities concentrated districts and identified towns.

ANNUAL CREDIT PLAN 2009-10
Achievement as on 31.03.2010

Financial Inclusion – Preparation of Financial Inclusion Plan

Reserve Bank of India has directed that Lead Banks may constitute a Sub Committee of District Consultative Committees (DCCs) to draw a road map by March, 2010 to provide banking services through a banking outlet in every village having a population of over 2000. Such banking outlets may not be necessarily be extended through brick and mortar branch but can be provided through any of the various forms of ICT – based models, including through BCs.

As Convenor Bank for SLBC of Andhra Pradesh, we have advised all the DCCs to constitute Sub Committees and complete the preparation of Road maps in the districts.

All the DCCs have constituted Sub Committees and completed the allocation of villages among banks.

The Banks in Andhra Pradesh have to provide banking services in 6699 villages by the end of March, 2011 as advised by RBI.

The list of villages District wise and bank wise are given separately.

Bank wise allocation of Villages for Financial Inclusion - Nationalised Banks

Bank wise allocation of Villages for Financial Inclusion - RRBs

Annual Credit Plan 09-10 : Achievements as on 31.12.09

Bank-wise Banking Key Indicators as on 31.12.09

Minutes of 169th Meeting of SLBC of Andhra Pradesh

Minutes of 170th Meeting of SLBC of Andhra Pradesh

Projections for 2010-11