DECCAN GRAMEENA BANK (Sponsored by State Bank of Hyderabad) HEAD OFFICE : HYDERABAD Andhra Pradesh Meeting with CEOs of Housing Finance Companies, Public.

DECCAN GRAMEENA BANKDECCAN GRAMEENA BANK(Sponsored by State Bank of Hyderabad)(Sponsored by State Bank of Hyderabad)

HEAD OFFICE : HYDERABAD HEAD OFFICE : HYDERABAD

Andhra PradeshAndhra Pradesh

Meeting with CEOs of Housing Finance Meeting with CEOs of Housing Finance Companies, Public Sector Banks, Companies, Public Sector Banks,

select Regional Rural Banks-select Regional Rural Banks-On 17-03-2010 at 1-45 PMOn 17-03-2010 at 1-45 PM

Deccan Grameena Bank (Deccan Grameena Bank (DGBDGB) was ) was established on 24established on 24thth March 2006 with March 2006 with Head Office at Hyderabad established in Head Office at Hyderabad established in Andhra Pradesh by amalgamating the Andhra Pradesh by amalgamating the following four RRBs namely,following four RRBs namely,

Sri Saraswathi GB, Sri Saraswathi GB, Adilabad Adilabad DistrictDistrict Sri Sathavahana GB, Sri Sathavahana GB, KarimnagarKarimnagar District District Sri Rama GB, Sri Rama GB, NizamabadNizamabad District and District and Golconda GB, Golconda GB, RangareddyRangareddy District District

Subsequently Subsequently Hyderabad urban districtHyderabad urban district is also is also included in our operational area.included in our operational area.

This gives a distinctive advantage to This gives a distinctive advantage to DGB DGB to have to have a good mix of rural and urban customers.a good mix of rural and urban customers.

DGB 17.03.2010DGB 17.03.2010

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

DGB 17.03.2010DGB 17.03.2010

Products & ServicesProducts & Services Almost all loans and deposit products available in Almost all loans and deposit products available in

Commercial Banking, including commercial loans, Commercial Banking, including commercial loans, are also now available in all RRBs, except are also now available in all RRBs, except international Banking. international Banking.

Unlike commercial banks, main focus of Unlike commercial banks, main focus of RRBs, RRBs, however, on products like SHG Loans, Crop Loans, however, on products like SHG Loans, Crop Loans, Kisan Credit Card (GCC), other small agriculture loan, Kisan Credit Card (GCC), other small agriculture loan, various types and sizes of housing loans and various various types and sizes of housing loans and various other products for total financial inclusion (TFI) like other products for total financial inclusion (TFI) like no frill accounts, opening of accounts for NAREGA no frill accounts, opening of accounts for NAREGA and SSP through Smart Cards. and SSP through Smart Cards.

We shall mainly discuss on Housing loan and related We shall mainly discuss on Housing loan and related productsproducts

Housing loans are sanctioned Housing loans are sanctioned ranging from Rs.20,000/- to ranging from Rs.20,000/- to Rs.50.00 lacs to individualsRs.50.00 lacs to individuals

In Rural / Semi-urban / Urban areas In Rural / Semi-urban / Urban areas under normal scheme of Bank under normal scheme of Bank ( Rs173 crs)( Rs173 crs)

Under Under INDIRAMMAINDIRAMMA programme programme (Integrated Development in rural (Integrated Development in rural and modern municipal areas) (Rs and modern municipal areas) (Rs 41.80)41.80)

Under Under VAMBAYVAMBAY (Valmiki Ambedker (Valmiki Ambedker Awas Yojana) and Rajiv Gruha Kalpa Awas Yojana) and Rajiv Gruha Kalpa housing schemes (Rs 11.91)housing schemes (Rs 11.91)

DGB 17.03.2010DGB 17.03.2010

Housing Finance also done through SHGs – Housing Finance also done through SHGs – Debt Swapping and MCP Debt Swapping and MCP

• The Bank has so far extended finance to The Bank has so far extended finance to 120935 (cumulative) SHGs (including debt 120935 (cumulative) SHGs (including debt swapping for loans including housing) and the swapping for loans including housing) and the total outstanding to this segment is Rs 364 total outstanding to this segment is Rs 364 crores for 14.89 lacs household families , who crores for 14.89 lacs household families , who have been freed from the clutches of private have been freed from the clutches of private money lenders under money lenders under Debt Swapping Debt Swapping SchemeScheme..

• Under MCP 7,30,324 families benefited to the Under MCP 7,30,324 families benefited to the extent of Rs.328.35 crores for crop loan and extent of Rs.328.35 crores for crop loan and for other purposes for other purposes includingincluding for housing for housing purposepurpose

DGB is pioneer in implementation DGB is pioneer in implementation of Total Financial Inclusion (TFI) for of Total Financial Inclusion (TFI) for SHGs under MCP – (Micro Credit SHGs under MCP – (Micro Credit Plan). Loans are sanctioned to Plan). Loans are sanctioned to SHGs upto Rs.5.00 lacs.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 lending Internal lending • Social needsSocial needs• Consumption needsConsumption needs

DGB DGB 17.03.201017.03.2010

Market ConditionMarket Condition

Advantages of RRBs: 1) Good Reach for Advantages of RRBs: 1) Good Reach for both rural and urban customers 2) fairly both rural and urban customers 2) fairly dependable relationship and trust 3) dependable relationship and trust 3) Reasonable maintenance of delivery Reasonable maintenance of delivery schedule etc 4) RRBs have Refinance schedule etc 4) RRBs have Refinance under RRB RHB 2008under RRB RHB 2008

Main Constraints: 1) stiff competition Main Constraints: 1) stiff competition 2)Pricing(200–300 bps higher) 2) Lack of 2)Pricing(200–300 bps higher) 2) Lack of focused marketing 3)Quality and no of focused marketing 3)Quality and no of Staff4)delinquency of loans Staff4)delinquency of loans

DGB 17.03.2010DGB 17.03.2010

• Recent initiatives by DGBRecent initiatives by DGB

• Extensive marketing drive by all Brs Extensive marketing drive by all Brs during festive season Dec & Janduring festive season Dec & Jan

• Road Show Road Show : Recently conducted : Recently conducted road showroad show for Housing Loan in Rural Areasfor Housing Loan in Rural Areas (Nizamabad(Nizamabad) ) and received loan proposals to the tune of 2.35 and received loan proposals to the tune of 2.35 crores from 30 applicants ranging from Rs. 3 to crores from 30 applicants ranging from Rs. 3 to 15 lakhs.15 lakhs.

• Similar road shows are being conducted in Similar road shows are being conducted in other rural / semi urban areas other rural / semi urban areas housing loans.housing loans.

• SBI HOME LOAN POLICY SBI HOME LOAN POLICY : To take care of loan : To take care of loan quality due to death , we are introducing policy quality due to death , we are introducing policy to cover life and loan amount.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 BF SHG and retired bankers as BF

Housing loans sanctioned and Housing loans sanctioned and disbursed by DGB ( HL under SHG disbursed by DGB ( HL under SHG and Debt-swapping excluded) :and Debt-swapping excluded) :

ParticularsParticulars 31-03-200831-03-2008 31-03-200931-03-2009 31-12-200931-12-2009

No. of No. of A/cs.A/cs.

Amt.Amt. No. of No. of A/cs.A/cs.

Amt.Amt. No. of No. of A/cs.A/cs.

Amt.Amt.

Disburse- Disburse- ment ment

67436743 36.5836.58 41384138 22.3122.31 69016901 36.7136.71

Out -Out -standing standing

82418241 65.6365.63 87628762 71.5471.54 1335413354 108.72108.72

(144)(144)

DGB 17.03.2010DGB 17.03.2010

Flying in a V geese improveFlying in a V geese improve

Performance by 71%Heart warming Performance by 71%Heart warming experienceexperience

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 HousingDGB 17.03.2010 Housing

In this Grameena Bank CBS inaugurated on 18th Jan,10 and within 42 days we’ve complet ed 100% CBS in 212 Branches ,4 Ros ,HO and one ATM (1st 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 centreDGB 17.03.2010 HousingorDGB 17.03.2010 Housingor

Points Requested to Consider Points Requested to Consider

RRBs are not listed in the eligible Financing RRBs are not listed in the eligible Financing Agencies list for claiming 1)Agencies list for claiming 1) 5% under Interest 5% under Interest Subsidy Scheme for Housing The Urban Poor Subsidy Scheme for Housing The Urban Poor (ISHUP) 2)1% interest subvention(ISHUP) 2)1% interest subvention under Housing under Housing loans to individuals upto Rs.10 lakhs. loans to individuals upto Rs.10 lakhs.

Out of Limit of Rs 50 Crs , Refinance application Out of Limit of Rs 50 Crs , Refinance application made for 37 crs onlymade for 37 crs only

Income ceiling for RRBs RHF may be increased to Income ceiling for RRBs RHF may be increased to Rs5 LacsRs5 Lacs

The above may be considered for RRBs also.The above may be considered for RRBs also.

RRBs having large customer base, where NHB RRBs having large customer base, where NHB is aiming at . We request a closure is aiming at . We request a closure interaction and support to use the synergyinteraction and support to use the synergyDGB DGB

17.03.201017.03.2010

DECCAN GRAMEENA BANKDECCAN GRAMEENA BANK

-Sanjiban Brata Roy

DGB, Chairman

DGB 17.03.2010DGB 17.03.2010