ZONAL OFFICE, MUZAFFARPUR ................................................................................................................................................ ZO/CR/2013-14/4 Date -04.04.

2013

Assistant General Manager Credit policy, Central Office Reg-Comments on shortfall to achieve targets of Advance of our zone Ref-Your mail dated 04.04.2013 In this context, we would like to submit the following: The comparative position of advances during 2011-12 & 2012-13 is as under Target(March 13) - 2798 crores Achievement -2606 crores Gap- 192 crores Target (March 13) -2798 crores Growth -49.38 %

Advances Achievement (March 12) -1873 crores

It may be observed from the figures that the we have achieved a growth of 39.16 % over March 2012 which is more than overall growth of advances of the Bank . We are further providing statistical analysis of our advances portfolio which is as under: (IN CRORES) ADVANCES AS ON AS ON TARGET GAP GROWTH GROWTH 31.03.12 31.03.13 MARCH %OVER %OVER 13 TARGET MARCH 12 TOTAL ADVANCES PRIRORITY SECTOR AGRICULTUE DIRECT AGRICULTURE SME RETAIL 1873 1484 940 820 341 438 2606 2241 1582 997 385 579 2798 2310 1376 1150 575 587 -192 -69 206 -153 93.14 97.00 114.97 86.69 39.16 50.99 68.25 21.62 24.25 32.19

-190 66.96 -8.00 98.63

From the above, it may be observed that despite our zone being rural we had achieve over 93 % of our target while we had 39.16 % YOY growth .We had very high percentage of NPA i.e 15.18 % in last financial year which has been brought down to 8.74% due to our vigorous efforts and emphasis only on quality credit proposal. In this direction we organized maximum credit camps based on cluster approach every month with specific targets allotted to every camp for achievement. We got very good response from these camps with sanction of quality credit proposals. We also had maximum SHGs credit linkage which was our commitment to social equality and upliftment of the poor. Further our zone has very little potential for industrial advances except sugar industry,cold storage ,rural gowdowns and limited number of small and micro enterprises .It reduces our potential for large borrowal accounts .During the year 201213 ,we had mainly emphasized for containing fresh slippages and reduction in NPAs. In the nut shell, we did our level best to achieve our targets and we commit that in the next financial year we will definitely achieve our credit targets in all respects. We have made some advanced strategy for achievement of our goal which is as under:

NAV CHETANA- Work Hard Work Smart PAWAPURI VIHAR, BHAGWANPUR CHOWK, MUZAFFARPUR 842001 Phone No-0621-2251783, 2251785, 2251786, Fax-0621-2251784

 ZONAL OFFICE, MUZAFFARPUR ................................................................................................................................................ We will first of all remove the fear psychosis associated with advances among our BMs/Credit Officers del as credit is always associated with risks. The knowledge level of our staff members will also be increased by organizing various training programs. We will assess the potential of different Branches and they will be allotted targets of particular loan products according to potentiality. Thus targets of the zone as a whole will be achieved. We will specially emphasize on Priority sector advances with maximum sanction under rural gowdown scheme, cent contractor and cent food processing schemes. Bihar is a fast growing state so we will especially emphasize on SME finance though promotion of Cent Sahyog scheme and newly launched schemes for SME advances. We are also emphasizing on maximum sanction of Housing loan by special tie up with Builders .Last financial year we also had housing cum vehicle loan expo where we got tremendous response from the potential customers. It boosts our confidence that we will have maximum sanctions under DHFS scheme and Cent Vehicle scheme. We have also planned a branch wise sanction figures under different schemes which is as under: Housing Loan -1 A/C per Branch 10 lacs per month * 40 Branches Cent Mortgage-1 A/C per Branch 5 lacs per month *25 Branches Personal Loan -5 A/C per Branch 2 lacs per month *40 Branches Cent Vidhyarthi -5 A/C per Branch 8 lacs per month*100 Branches Cent Doctor - 1A/C per Branch 10 lacs per month*5 Branches Cent Trade -1 A/C per Branch 10 lacs per month *50 Branches Cent Vehicle -1 A/C per Branch 4 lacs per month *40 Branches (Four Wheeler) 2 A/C per Branch 1 lacs per month *40 Branches (Two Wheeler) Pension Loan -1 A/C per Branch 2 lacs per month * 100 Branches Kisan Cards -200 Kisan Cards 1 lacs each in the year *188 Branch Tractor Loan - 10 Tractors 5 lacs each in a year *100 Branches SME Finance -1 A/C 10 lacs each month per Branch * 15 Branches (Manufacturing) 2 A/C 5 lacs per month per Branch *80 Branches We have especially allotted Targets to specified Branches for financing to Rice shellers .Bettiah, Raxaul, Chanpatia are specific among 20 Branches. Each branch has to sanction 50 lacs in the financial year .Similarly 20 Branches has been allotted to finance Brick Klins with each branch has to sanction 40 lacs in a year. We will also provide maximum finance to Flour Mills which have good potential We have chalked out strategies for advances growth taking into consideration our bifurcation of branches into high, medium and low potential. We assure you that we will achieve the targets allotted to us for the financial year 2013-14.

(S.K.Rai) Zonal Manager

NAV CHETANA- Work Hard Work Smart PAWAPURI VIHAR, BHAGWANPUR CHOWK, MUZAFFARPUR 842001 Phone No-0621-2251783, 2251785, 2251786, Fax-0621-2251784