Saurashtra Garmin Bank’s Intervention and Experience in Rural Housing Presented By: H. K. Dabhi (Chairman) SAURASHTRA GRAMIN BANK

About us Came into existence w.e.f. 02.01.2006 with amalgamation of following three erstwhile RRBs. Jamnagar – Rajkot Garmin Bank Surendranagar – Bhavnagar Garmin Bank Junagadh – Amreli Garmin Bank Area of Operation – Seven districts of Saurashtra Region of Gujarat State. (Rajkot, Jamnagar, Amreli, Surendranagar, Junagadh, Bhavnagar and Porbandar) Head Office at Rajkot – Gujarat & 3 Region Offices Network of 169 Branches on 100 % CBS Platform with 8 satellite offices. (Rural – 119, Semi Urban – 37, Urban – 13) Area of Operation – 1116 Villages

Vision & Mission Vision Statement: “Building a professionally sound Institution to cater to the Banking needs of the people of Saurashtra inter-alia covering the disadvantaged masses” Mission Statement: To Cater to the Banking Needs of People of Saurashtra through Ace Products, Delighted Customer Service and Financial Improvement of the Targeted Mass with a Team of Self Motivated Man Power, Advanced Technology and Well Defined Systems.

Significance of our Logo Our logo denotes Safety, Security and Growth. Logo signifies our presence in Saurashtra Region of Gujarat & the face of Great Asiatic Lion represents its habitation in the GIR LION SANCTURY in our area of operation. The Leaves Denote Agriculture Growth. The Chimney Denotes Focus in Industrial Growth of Saurashtra Region.

Area of Coverage Saurashtra Region of Gujarat Head Office - Rajkot Districts Covered Rajkot Jamnagar Surendranagar Junagadh Amreli Porbandar Bhavnagar Region Offices

Business Highlights (as on 31st March, 2011) Total Business: Rs. 2183.07 Cr. (Total Business crossed Rs. 2400 Cr during August – 11) Total Deposit: Rs. 1381.52 Cr. (CASA Deposit - 44.29%) Total Advances: Rs. 801.55 Cr. (Highest Advances amongst all three RRBs of Gujarat) Loan Disbursement: Rs. 698.59 Cr. (Against Target of Rs. 675.05 Cr.) Operating Profit: Rs. 23.12 Cr. Reserves & Surplus: Rs. 59.79 Cr. Business / Branch: Rs. 13.07 Cr. Business / Employee: Rs. 3.20 Cr. CD Ratio: 58.03% (Average CD Ratio 10-11: 63.39%) (Highest CD Ratio amongst all three RRBs of Gujarat)

Business Highlights (Cont…) Cross Selling Business of Rs. 4.36 Cr. of SBI Life Insurance products. (Against target of Rs. 3.60 Cr. with growth of more than 400% and stood at first position among all SBI sponsored RRBs in terms of budget achievement) Bank introduced Micro Insurance Product of SBI Life Insurance “Garmin Super Suraksha” exclusively for SHGs, Sakhi Mandals and JLGs for the first time & covered 7488 Lives. Gross NPA: 1.21% Net NPA : 0.05 % (Lowest among all three RRBs of Gujarat) CRAR: 9.52% (Against Statutory requirement of 7.00%) Recover Rate: 83.88% (Highest among all three RRBs of Gujarat)

Key Highlights (as on 31st March, 2011) Priority Sector Advances: 627.04 Cr. (78.23%) Agriculture Advances: Rs. 573.54 Cr. (71.55%) Weaker Section Advances: Rs.313.27 Cr. (39.08%) Agriculture Disbursement: Rs. 492.00 Cr. (70.43%) 12043 New Farmers Financed during 2010 -11, out of which 8296 covered under KCCs and 3747 under ATL. Total Kishan Credit Cards (KCCs) Issued : 131085 Total SHGs A/C – 10024 and SHGs Linked – 3998, out of which Sakhi Mandals A/C – 4692 and Sakhi Mandals Linked – 1296 Bank formed & credit linked 366 micro groups under JLG scheme of NABARD covering 1686 members with amount of Rs. 2.05 Cr. (Stood @ 1st position amongst three RRBs of Gujarat)

Achievements 100% Migration to Core Banking Solution within short period of time of 3 months & stood at first amongst all 3 RRBs of Gujarat. Bank has opened 16 new branches during the financial year 2010 – 11, out of which, 6 branches opened under Financial Inclusion Plan. Beginning of House Magazine “We’ndow” during 2010 – 11 to bring out the talents of the staff to reach out to family of staff members. Bank has given promotion to four officers for Scale – IV level of RRB staff first time in history of SGB. Bank has imparted training to 125 officers at Ahmedabad Management Association (AMA) for the first time for the up-gradation of staff skill. Officers , clerical & subordinate staff is given extensive training in various Banking areas at reputed Training Institutes like BIRD, SBIRD, AMA, CAB. Etc.

Financial Literacy Our Bank put in sincere and constant efforts to increase Financial Literacy of people of Saurashtra Region through various campaigns and programs. In last two years’ time Bank took up an extensive Gramin Relation Program. Under this Program, Bank held about 3350 Gram Sabhas till end of March – 2011. Bank conducted about 2400 Gram Sabhas and 400 Customer Meets during current year for cause of Financial Literacy. It is a unique way to reaching out to the rural people, with multiple mutual benefits.

Financial Literacy (Cont…) Bank conducted Literacy Training program of 5 days for 25 representatives of SHGs, JLGs, Sakhi Mandals and Farmer’s clubs with the support of NABARD and ISMW to improve the awareness of Banking & Financial products & services amongst Rural Population. Bank set up 203 Farmer’s Clubs for the benefit of farmers & to improve Financial Literacy among farmers. Bank has also planned “Mega Gram Sabha for Financial Literacy” with the help of NABARD and proposal for the same already sent to NABARD for approval.

Financial Inclusion 139 villages are allotted to Bank under “Financial Inclusion Program” of providing banking services to villages having population of 2000 & more to be covered by the end of financial year 2011 – 12. Other 245 villages allotted under said program for providing banking services to villages having population of 1000 to 2000. Chairman and other three officers of the Bank participated in An Exposure Visit @Vidharbha Kshetriya Garmin Bank (Maharashtra) (RRB sponsored by CBI) arranged by NABARD. Visit was conducted mainly for the purpose to motivate RRBs for adoption of villages in the area of operation for overall Development with financial & other qualitative support.

Financial Inclusion (Cont…) Out of total 139 villages, Bank planned to cover 9 villages with opening of branches and remaining 130 villages will be covered through ICT model by the end of financial year 2011 – 12. Bank already covered 7 villages with opening of branches, out of 9 villages to be covered through opening of branches. Bank has signed agreement and engaged 13 BCs who will cover 20 villages under “Pilot Project” of ICT model. With the help of our sponsor Bank (SBI) we are in finalization stage of selection of technology provider for ICT model for all villages to be covered under it as advised by RBI & Govt of India.

About Rural Housing According to the 1991 Census, the rural housing shortage was 13.72 million consisting of 3.41 million households without houses and 10.31 million living in unserviceable Kutcha Houses. History suggests that there is a clear correlation between poverty and housing: a poor person either does not have a house or lives in an unserviceable Kutcha House. The Central Government announced in 1998, the National Housing and Habitat Policy which aims at providing 'Housing for All', with an emphasis on extending benefits to the poor and the deprived. For achieving these objectives, a comprehensive Action Plan consisting of Provision for initiated by Government.

About Indira Awaas Yogna (IAY) Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development to provide houses to the poor in the rural areas with primary objective to help construction/up gradation of dwelling units. Funding Pattern: Centrally Sponsored Scheme funded on cost-sharing basis between the Government of India and the State Governments in the ratio of 75:25, in the case of North-Eastern States and Sikkim, ratio would be 90:10. In the case of Union Territories, the entire funds under this Scheme are provided by the Government of India.

About Indira Awaas Yogna (IAY) (Cont…) Target Group: Below poverty line households living in the rural areas, belonging to Scheduled Castes/Scheduled tribes, freed bonded laborers, minorities in the BPL category and non-SC/ST BPL rural households, widows and next-of-kin to defense personnel/paramilitary forces killed in action residing in rural areas (irrespective of their income criteria), ex-servicemen and retired members of paramilitary forces fulfilling the other conditions. (This scheme not applicable to RRBs as it is to be given @ DIR of 4.00%, however this scheme could be explored by Commercial Banks)

Rural Housing Scheme (SGB) Purpose: For construction or for renovation of new/old house. For purchase of land meant for construction of house. (Furniture / consumer durable cost can also be included in total project cost) Eligibility: Individual with independent and assured NMI of Rs. 5000/-Agriculturist having at least 7 Acres of Agri. Land with NAI of Rs.60000/- (Relaxation considered in deserving cases). Loan Limit: Rs. 1.00 Cr. Margin: 15.00% to 30.00% (On the basis of purpose) Interest Rate: 11.00% to 12.00% (On the basis of repayment term)

Rural Housing Scheme (SGB) (Cont…) Moratorium Period: Up to 18 months Repayment Term: Maximum up to 20 years Security: Equitable mortgage of property to be purchased / constructed / renovated (Generally, repayment can be made by EMI basis, but specially for the Agriculturist repayment can be made by Equated Half Yearly and Equated Yearly Installments coinciding with harvesting of crop) Processing Charge: 0.50% of Limit Sanctioned Generally, our Bank waives Processing Charge and also provides concession in Rate of Interest for promotion of the Housing Scheme in Rural area during “Loan Mela Campaign” organized by Bank.

Rural Housing Finance Detail (SGB) Rural Housing Outstanding As on 31.03.2011: No. of A/C: 750 Amount: Rs. 21.32 Cr. As on 30.06.2011: No. of A/C: 770 Amount: Rs. 23.09 Cr. Rural Housing Disbursement F. Y. 2010 – 11: No. of A/C: 453 Amount: Rs. 11.29 Cr. F. Y. 2011 – 12: No. of A/C: 86 Amount: Rs. 2.34 Cr. (up to quarter ended as on 30.06.2011)

NHB – Refinance National Housing Bank (NHB) provides refinance assistance @ 100% extent at very reasonable and fixed interest rate, in respect of housing finance provided / to be provided to individuals, out of Rural Housing Fund (RHF), 2008. SGB availed refinance of Rs. 5.00 Cr. under RHF @ very attractive fixed interest rate (6.00% p.a. for loans up to Rs.2.00 Lac, 6.50% p.a. for loans from Rs.2.00 Lac to Rs.5.00 Lac, 7.00% p.a. for loans above Rs.5.00 Lac to Rs.15 Lac) for repayment term up to 2018, on sanctioned and disbursed loans to the extent of Rs. 6.44 Cr. .

NHB – Refinance (Cont…) SGB availed refinance assistance within very short period from NHB and for which NHB helped through out the entire procedure and formalities to avail the same. NHB also encourages other Banks / Financial Institutions to avail refinance under RHF and SGB also recommends to avail refinance from NHB.