1. DECCAN GRAMEENA BANK (Sponsored by State Bank of Hyderabad) HEAD OFFICE : HYDERABAD Andhra Pradesh Meeting with CEOs of Housing Finance Companies, Public Sector Banks, select Regional Rural Banks- On 17-03-2010 at 1-45 PM

2. Deccan Grameena Bank (DGB) was established on 24 th March 2006 with Head Office at Hyderabad established in Andhra Pradesh by amalgamating the following four RRBs namely, Deccan Grameena Bank (DGB) was established on 24 th March 2006 with Head Office at Hyderabad established in Andhra Pradesh by amalgamating the following four RRBs namely, Sri Saraswathi GB, Adilabad District Sri Saraswathi GB, Adilabad District Sri Sathavahana GB, Karimnagar District Sri Sathavahana GB, Karimnagar District Sri Rama GB, Nizamabad District and Sri Rama GB, Nizamabad District and Golconda GB, Rangareddy District Golconda GB, Rangareddy District Subsequently Hyderabad urban district is also included in our operational area. This gives a distinctive advantage to DGB to have a good mix of rural and urban customers. This gives a distinctive advantage to DGB to have a good mix of rural and urban customers. DGB 17.03.2010

3. Performance at a glance as on 5 th Mar,2010: No. of Branches - 212 (on CBS) No. of Branches - 212 (on CBS) Deposits - Rs.2020 Crores Deposits - Rs.2020 Crores Advances- Rs.1590 Crores Advances- Rs.1590 Crores CD Ratio- 79% CD Ratio- 79% Profit - 42.48 Crores Profit - 42.48 Crores NPA level- 18.26 Cr (1.26%) NPA level- 18.26 Cr (1.26%) Per branch Business - 17.02 Cr. Per branch Business - 17.02 Cr. Per Employee Business- 4.70 Cr. Per Employee Business- 4.70 Cr. All Branches are functioning on CBS platform. All Branches are functioning on CBS platform. DGB 17.03.2010

4. Products & Services Almost all loans and deposit products available in Commercial Banking, including commercial loans, are also now available in all RRBs, except international Banking. Almost all loans and deposit products available in Commercial Banking, including commercial loans, are also now available in all RRBs, except international Banking. Unlike commercial banks, main focus of RRBs, however, on products like SHG Loans, Crop Loans, Kisan Credit Card (GCC), other small agriculture loan, various types and sizes of housing loans and various other products for total financial inclusion (TFI) like no frill accounts, opening of accounts for NAREGA and SSP through Smart Cards. Unlike commercial banks, main focus of RRBs, however, on products like SHG Loans, Crop Loans, Kisan Credit Card (GCC), other small agriculture loan, various types and sizes of housing loans and various other products for total financial inclusion (TFI) like no frill accounts, opening of accounts for NAREGA and SSP through Smart Cards. We shall mainly discuss on Housing loan and related products We shall mainly discuss on Housing loan and related products

5. Housing loans are sanctioned ranging from Rs.20,000/- to Rs.50.00 lacs to individuals Housing loans are sanctioned ranging from Rs.20,000/- to Rs.50.00 lacs to individuals In Rural / Semi-urban / Urban areas under normal scheme of Bank ( Rs173 crs) In Rural / Semi-urban / Urban areas under normal scheme of Bank ( Rs173 crs) Under INDIRAMMA programme (Integrated Development in rural and modern municipal areas) (Rs 41.80) Under INDIRAMMA programme (Integrated Development in rural and modern municipal areas) (Rs 41.80) Under VAMBAY (Valmiki Ambedker Awas Yojana) and Rajiv Gruha Kalpa housing schemes (Rs 11.91) Under VAMBAY (Valmiki Ambedker Awas Yojana) and Rajiv Gruha Kalpa housing schemes (Rs 11.91) DGB 17.03.2010

6. Housing Finance also done through SHGs – Debt Swapping and MCP The Bank has so far extended finance to 120935 (cumulative) SHGs (including debt swapping for loans including housing) and the total outstanding to this segment is Rs 364 crores for 14.89 lacs household families, who have been freed from the clutches of private money lenders under Debt Swapping Scheme.The Bank has so far extended finance to 120935 (cumulative) SHGs (including debt swapping for loans including housing) and the total outstanding to this segment is Rs 364 crores for 14.89 lacs household families, who have been freed from the clutches of private money lenders under Debt Swapping Scheme. Under MCP 7,30,324 families benefited to the extent of Rs.328.35 crores for crop loan and for other purposes including for housing purposeUnder MCP 7,30,324 families benefited to the extent of Rs.328.35 crores for crop loan and for other purposes including for housing purpose

7. DGB is pioneer in implementation of Total Financial Inclusion (TFI) for SHGs under MCP – (Micro Credit Plan). Loans are sanctioned to SHGs upto Rs.5.00 lacs. DGB is pioneer in implementation of Total Financial Inclusion (TFI) for SHGs under MCP – (Micro Credit Plan). Loans are sanctioned to SHGs upto Rs.5.00 lacs. Housing purposeHousing purpose Production needs/Investment needsProduction needs/Investment needs Debt swappingDebt swapping Income Generating activitiesIncome Generating activities Internal lendingInternal lending Social needsSocial needs Consumption needsConsumption needs DGB 17.03.2010

8. Market Condition Advantages of RRBs: 1) Good Reach for both rural and urban customers 2) fairly dependable relationship and trust 3) Reasonable maintenance of delivery schedule etc 4) RRBs have Refinance under RRB RHB 2008 Advantages of RRBs: 1) Good Reach for both rural and urban customers 2) fairly dependable relationship and trust 3) Reasonable maintenance of delivery schedule etc 4) RRBs have Refinance under RRB RHB 2008 Main Constraints: 1) stiff competition 2)Pricing(200–300 bps higher) 2) Lack of focused marketing 3)Quality and no of Staff4)delinquency of loans Main Constraints: 1) stiff competition 2)Pricing(200–300 bps higher) 2) Lack of focused marketing 3)Quality and no of Staff4)delinquency of loans

9. DGB 17.03.2010 Recent initiatives by DGBRecent initiatives by DGB Extensive marketing drive by all Brs during festive season Dec & JanExtensive marketing drive by all Brs during festive season Dec & Jan Road Show : Recently conducted road show for Housing Loan in Rural Areas (Nizamabad) and received loan proposals to the tune of 2.35 crores from 30 applicants ranging from Rs. 3 to 15 lakhs.Road Show : Recently conducted road show for Housing Loan in Rural Areas (Nizamabad) and received loan proposals to the tune of 2.35 crores from 30 applicants ranging from Rs. 3 to 15 lakhs. Similar road shows are being conducted in other rural / semi urban areas housing loans.Similar road shows are being conducted in other rural / semi urban areas housing loans. SBI HOME LOAN POLICY : To take care of loan quality due to death, we are introducing policy to cover life and loan amount.SBI HOME LOAN POLICY : To take care of loan quality due to death, we are introducing policy to cover life and loan amount. We are going to use Fino as BC and FC,We are going to use Fino as BC and FC, SHG and retired bankers as BFSHG and retired bankers as BF

10. Housing loans sanctioned and disbursed by DGB ( HL under SHG and Debt-swapping excluded) : Housing loans sanctioned and disbursed by DGB ( HL under SHG and Debt-swapping excluded) : Particulars31-03-200831-03-200931-12-2009 No. of A/cs. Amt. Amt. Amt. Disburse- ment 674336.58413822.31690136.71 Out - standing 824165.63876271.5413354108.72(144) DGB 17.03.2010

11. Flying in a V geese improve Performance by 71%Heart warming experience In team-work If we have the sense of a goose, we will stand by each other, protect one another and achieve much more than if we fly alone DGB 17.03.2010 Housing

12. In this Grameena Bank CBS inaugurated on 18 th Jan,10 and within 42 days we’ve complet ed 100% CBS in 212 Branches,4 Ros,HO and one ATM (1 st in any RRB of SB group) a great feat of team- work and dedication by our team, SBH and M/S C- Edge, the service provider that has been highly applauded by DMD corporate centre DGB 17.03.2010 Housingor

13. Points Requested to Consider Points Requested to Consider RRBs are not listed in the eligible Financing Agencies list for claiming 1) 5% under Interest Subsidy Scheme for Housing The Urban Poor (ISHUP) 2)1% interest subvention under Housing loans to individuals upto Rs.10 lakhs. RRBs are not listed in the eligible Financing Agencies list for claiming 1) 5% under Interest Subsidy Scheme for Housing The Urban Poor (ISHUP) 2)1% interest subvention under Housing loans to individuals upto Rs.10 lakhs. Out of Limit of Rs 50 Crs, Refinance application made for 37 crs only Out of Limit of Rs 50 Crs, Refinance application made for 37 crs only Income ceiling for RRBs RHF may be increased to Rs5 Lacs Income ceiling for RRBs RHF may be increased to Rs5 Lacs The above may be considered for RRBs also. RRBs having large customer base, where NHB is aiming at. We request a closure interaction and support to use the synergy DGB 17.03.2010

14. DECCAN GRAMEENA BANK -Sanjiban Brata Roy DGB, Chairman DGB 17.03.2010