The
Eleventh Five Year Plan of the state and the country was launched in
2007-08 with a special focus to address the agrarian crisis.The National
Policy for farmers was released in 2007 with the major objectives such
as to improve economic viability of farming by substantially increasing
the net income, to protect and improve land, water, bio-diversity and
genetic resources essential for sustained increase in the productivity,
profitability and stability of major farming systems.
1.
National Policy for Farmers -2007
*
Joint pattas for both homestead and agricultural land are essential
for empowering women to access credit and other services. The Land Acquisition
Act would be reviewed with particular reference to the assessment of
compensation.
*
Water users’ associations would be encouraged to gain expertise
in maximising the benefits from the available water. To enhance water
availability and stability of water supply , rain water harvesting and
aquifer recharging will be given priority. Renovation of existing ponds
and wells, demand management through improved irrigation practices ,launching
water literacy movement etc. will be initiated
*
With the support of National Rainfed Area Authority, a drought code
will be introduced in drought prone areas, Flood code in flood prone
areas and Good weather code in arid areas
*
To enhance the income of livestock owners, agri-clinics operated by
veterinary and farm science graduates would be encouraged to improve
productivity and overall efficiency of livestock. Livestock insurance
would also be revamped and made accessible to all farmers.
*
For poultry Quarantine and Testing facilities for imported birds and
vaccines at all ports of entry would be established and strengthened.
Testing for safety and efficacy of imported poultry vaccines before
they are allowed to be marketed, as is done in the case of human vaccines,
would be made compulsory. Appropriate support would be provided to backyard
poultry farmers to promote clusters or small holders’ poultry
estates.
*
In the area of public policy, there is a need for well-planned aquarian
reforms in order to provide landless labour families access to village
ponds and other water bodies in the public domain for aquaculture. Centralised
services to support the decentralised capture and culture in fisheries
sectors, promoting inland aquaculture, Artificial coral reefs to compensate
for the loss of natural coral reefs to revive the fish catch, Raising
bio-shields etc. will be initiated
*
A dynamic policy for the management and economic use of the Exclusive
Economic Zone (EEZ) for a variety of economic activities, including
fisheries, will be evolved and put in place with the assistance of NFDB.
*
The National Gene and Biodiversity Fund would be used to recognise and
reward contributions of farmers and to support revitalisation of in
situ farm conservation traditions of such communities.§ For conservation
of bio resources , community biodiversity registers, support to rural
and tribal people for revitalizing their farm traditions, participatory
breeding procedures, launch of literacy movement on genetic and legal
aspects of biodiversity, genome clubs in schools and colleges, training
of farm and tribal families to prevent gene erosion, organise and support
herbal bio valleys to conserve medicinal plants , setting up of farmer
level gene banks, participatory management of national parks, biosphere
reserves and gene sanctuaries etc. will be promoted
*
Biodiversity fund will be utilized for motivating people to conserve
their animal breeds under Biodiversity act.
*
New technologies will be applied to launch an evergreen revolution .The
research strategy should be pronature, pro-small farmer and gender sensitive.
Community-managed seed villages and seed technology training centres
are needed, with women playing the major role because of their traditional
knowledge of seeds and seed management, especially in tribal communities.
*
A National Bio-technology Regulatory Authority would be set up for ensuring
the safe and responsible use of recombinant DNA technology or genetic
engineering. Need-based breeding of crop varieties would be stepped
up such as processing quality in fruits and vegetables.
*
High level multidisciplinary effort will be made for enhancing scientific
inputs in organic farming that meet the needs of farmers.
*Establishing
an integrated National Agricultural Biosecurity System (NABS) on cropping
patterns and water availability.
*
The agro-meteorological advisories issued from time to time would be
used by Panchayat-level functionaries, trained to give appropriate land-use
suggestions to farmers with the least possible time lag. For marine
fisheries, data on wave heights and location of fish shoals available
would be transmitted to the fishermen. In drought and flood-prone areas,
experienced farmers would be trained as “Climate Managers”
in the art of managing drought, flood and aberrant monsoons.
*
A national seed grid will be established to ensure supply of seeds across
the country, as per the area specific requirement.
*
Steps would be taken to ensure that each farmer is issued with a soil
health passbook containing integrated information on the physics, chemistry
and microbiology of farm soils with corresponding advisories would be
promoted.
*
The sale of spurious and substandard pesticides would be prevented and
bio-pesticides would be promoted.
*Agri
- entrepreneurs including farm graduates and progressive farmers would
be encouraged to provide implements and tools, machinery, tractors and
other farm implements on a custom-hire basis.
*
Bio-technology research in the area of vaccine development would be
stepped up, encouraging public private partnerships
*
Progressive fishermen and their groups such as SHGs would be trained
in induced fish seed breeding, production and availability of seed and
fish seed feed.
*
For capacity building and livelihood, women working in the farms need
appropriate support services like crèches, child care centres,
nutrition, health and training, etc.
*
Steps would be taken for extensive coverage of farmers under the Kisan
Credit Card Scheme. Micro credit and micro insurance will be promoted.
Revamping the National Agricultural Insurance Scheme to make it more
farmer friendly. For credit and insurance literacy in villages, Gyan
Chaupals (village knowledge centres) will be established . Kisan credit
cards would be issued to women speedily with joint pattas for homestead
/ agricultural land.
*
KVKs would take up training and lab-to-land demonstrations in the area
of post-harvest technology, agro-processing and value addition to provide
skilled jobs in villages.
*
Terminal markets for agriculture would be developed in public-private
partnership mode
*
The Minimum Support Price (MSP) mechanism would be implemented effectively
across the country and the Market Intervention Scheme (MIS) would be
strengthened markets for local produce.
*
The curriculum of Agricultural Universities will be revised. The motto
of Agricultural universities would be to groom “every scholar/student
as an entrepreneur”. This will call for integrating business management
principles with major applied courses.
*
The mandate of the ICAR would be expanded to provide for registration
and accreditation to the farm graduates as registered farm practitioners
to provide quality service to the farmers.*
Special categories of farmers such as tribal farmers pastoralists, island
farmers, plantation farmers and urban farmers will be supported* Special
categories of farming such as organic farming, green agriculture, protected
agriculture would be promoted .
*
Risks and benefits associated with GM crops will be assessed.
*Distress
spots will be addressed to mitigate the agrarian stress and mega biodiversity
hot spots will be encouraged to convert their bio resources into economic
wealth in a sustainable manner with the participation of local communities
.
*
Educated youths would be helped and supported for setting up agri-clinics
and production-cum-processing centres to undertake outsourcing jobs
2.
National Food Security Mission (NFSM)
In
order to tackle this food crisis the Govt. of India launched the National
Food Security Mission in 2007- 08 to increase the production of rice
by 10 million tons, wheat by 8 million tons and pulses by 2 million
tons by the end of the Eleventh Plan (2011-12). Palakkad district from
Kerala has been included in the mission. The key features of NFSM is
that the scheme to be implemented in a mission mode through a farmer
centric approach and all
the
Stakeholders to be actively associated at the District levels for
achieving the set goal. The scheme aims to target the select districts
by making available the improved technologies to the farmers through
a series of planned interventions. A close monitoring mechanism is
proposed to ensure that interventions reach to the targeted beneficiaries.
The major objectives of the scheme are increasing production of rice,
wheat and pulses through area expansion and productivity enhancement
in a sustainable manner; restoring soil fertility and productivity
at individual farm level; and enhancing farm level economy (i.e. farm
profits) to restore confidence of farmers of targeted districts. The
Districts are selected based on following criteria
*National
Food Security Mission-Rice : Districts Covering more than 50,000 ha
area under rice , the productivity is less than the State average
productivity.* National Food Security Mission-Wheat : Districts with
sizeable area under wheat , Districts having irrigation to a great
extent, the productivity is less than national/state average.*National
Food Security Mission- Pulses : The districts selected based on potential
for area expansion through inter-cropping / fallow land.
A
no. of 133 Districts in 12 states have been selected under NFSM- Rice
, 138 Districts in 9 states under NFSM-Wheat and 168 Districts in
14 states have been chosen under NSFM - pulses.
Strategies
adopted under the mission are
1.
Expansion of area of Pulses and Wheat, no expansion of area in rice
2.
Bridging the yield gap between the potential and the present level
of productivity through Ø Acceleration of seed production.
*
Integrated Nutrient Management and Integrated Pest Management
*
Promotion of new production technologies like hybrid rice, timely
planting of wheat and promotion of new improved variety of Pulses
*Supply
of inputs ensuring their timely availability
*Farmers
Training and Visits
Source
: Ministry of Agriculture and Co operation, GOI, 2007
Top
Fisheries
The state has all the requisite natural endowments for building a
strong and vibrant fisheries economy in tune with the national strategy.
They include a stretch of coastal belt extending over 590 km. and
an extensive inland water spread of around 4 lakh hectares. The exclusive
economic zone (sea spread upto 200 metres) lying adjacent to Kerala
coast is spread over 36000 square kilometres which is almost equivalent
to the land area of the state.
4.188 The state has a total fresh water area of 158358 ha consisting
of reservoirs (42890 ha), private ponds (21986 ha), irrigation tanks
(2835 ha), Panchayat ponds (1847 ha) and 44 rivers having water spread
area of 85,000 ha. The brackish water resources consist of 65213 ha
of estuaries and backwaters and 12873 ha of prawn filtration fields.
The polders of Kuttanad having a water spread of 35000 ha and 17,000
ha of kole lands of Thrissur are also very ideal for various aquaculture
development activities.
4.189 The estimated fisher folk population of Kerala is 11.114 lakh,
which include 8.558 lakh in the marine sector and 2.556 lakh in the
inland sector. Out of this the number of active fishermen is estimated
as 2.28 lakh. There are 222 fishing villages in the marine and 113
fishery villages in the inland sector, where fishing and relative
activities provide livelihood to a vast majority of the population.
Alappuzha district is in the first place in the number of fisher folk
with a population of 1.86 lakh followed by Thiruvananthapuram(1.83
lakh).
Top
Forestry
and Wildlife
In
Kerala, forests fall in two bio-geographic zones of Western Ghats
and the West Coast, and are rich in bio-diversity and vital for environmental
protection and considered to be a repository of rare and endangered
flora and fauna. The forest area in Kerala (11278.25 sq.km.) is 29
per cent of the geographical area of the state which is higher than
the national average of 19.5%. Kerala
ranks 14th among all the States/ Union Territories in respect of percentage
of geographical area under forest cover. The estimated forest area
(provisional) in Kerala is 11278.2487 sq.km.. This includes 9225.6522
sq.km. of reserve forests, 217.1891 sq.kms. of proposed reserves and
1835.4074 sq.km. of vested forests. Out of the total 11278.2487 sq.
kms,. the effective forest area in Kerala is only 9400 sq.kms.
There
are considerable variations in forest type, the predominant three
broad types being tropical moist deciduous forests from the plains
to 750 MSL, tropical wet evergreen forests in the mountain ranges
of the Ghats, and tropical semi-evergreen forests between these two
types. These three types together cover most of the natural forest
area (79 per cent). The coverage of the plantation forestry is to
the extent of 19.30 per cent of the total area. The forests in Kerala
are better stocked than forests in most other parts of India.
Types
of Forests in Kerala
Forest
Type |
Area(Sq.km.) |
%
of Total area |
Tropical
Wet Evergreen and semi evergreen Forests |
3299
|
35.10 |
Tropical
Moist Deciduous Forests |
4100
|
43.62 |
Tropical
Dry Deciduous Forests |
100
|
1.06 |
Mountain
Sub Tropical Temperate shoals |
70
|
0.74 |
Plantation
|
1814
|
19.30 |
Grass
land |
17
|
0.18 |
Total
|
9400
|
100 |
Source:
Department of Forest
The Revenue
from the forestry sector by way of sale of timber and other forest
products comes to Rs. 175 crores in 2006-07 as against Rs. 190 crores
in 2005-06. Major portion of the forest revenue is from timber (Fig.
6.1). During 2006-07, Rs. 139.14 crore was the revenue from timber,
which account for 79.51 per cent of the total forest revenue. The
State Government have modified the policy of supplying raw materials
at subsidised rates from 1999-00 onwards and completely abolished
the subsidy with effect from 30.09.2004. The increase in revenue attained
through this measure is of the order of Rs. 10.00 crore per annum.
National
Forest Policy
The forests
of Kerala have been managed following National Forest Policy. The
National Forestry Commission has also recently recommended that each
State shall have it own forest policy statement for the sustainable
management of its forest and wild life resources. A comprehensive
state forest policy to address the specific problems and issues related
to the conservation of forests and biodiversity of the state as well
as the livelihood needs of the forest development communities has
been formulated during 2007. The forest policy of the stateis guided
by the 1988 National Forest Policy. The Forest Management Policy of
the state encompasses technology improvement, bio-diversity conservation
and development of partnership with the forest dependent communities
and fringe dwellers. Special thrust is also given for protecting species
of plants and animals.
Participatory
Forest Management (PFM)
In Kerala
571 PFM Committees have been formed and 1.65 lakh ha. forest area
has been brought under PFM. About 64000 families including 9823 SC's
and 11279 ST's are involved in PFM programme in various forest divisions
of Kerala. The execution, monitoring and evaluation of the micro plans
are vested with the Vanasamrakshana samithies. So far 561 VSSs and
193 EDCs are formed during the last 5 year period. Government of Kerala
constituted the FDA's in each forest division in 2002-03, with a view
to guiding the activities of the VSS.
National
Afforestation Programme The
amount released to State was Rs. 10.55 crores and the expenditure
reported was Rs. 6.05 crore. The project is being implemented by 24
Forest Development Agencies through Participatory Forest Management
(PFM) mode with the active participation of stake holders forming
Vana Samrakshana Samithies (VSSs).
Wildlife
and Biosphere Reserve
Kerala
has two bio-sphere reserves namely Nilagiri Bio-sphere Reserve with
an area of 1455 sq.kms constituted in 1986 and Agasthyamala biosphere
reserve with an area of 1701 sq.kms constituted in 2002 .Detailed
action plans will facilitate attraction of additional funding for
these sites for long term conservation and sustainable utlisation
of resources.The area covered by five National Parks, fifteen Wild
life sanctuaries coming under the category of protected areas in Kerala
works out to 2452.48 sq.kms. It is about 21.75 per cent of the total
area under forest and 6.3 per cent of the total geographical area,
which is higher than the national average of 5 per cent. Details are
given in Appendix-6.20. During 2006, Kurinjimala- sanctuary was constituted
and a fowl sanctuary named choolannur pea fowl sanctuary has established
in 2007. With the formation of these sanctuaries, Government intended
to ensure long term protection for the majestic vegetal sketch which
contains many botanical rarities and novelties to science. Protected
areas are managed now as showcases of bio diversity with predominance
for large animals in habitat management, participatory management
based on the principles of eco-development has been initiated and
this strategy has resulted in the co-operation of the neighborhood
communities and forest dependent communities. During the year 2006-07,
an amount of Rs. 1790 lakhs was earmarked under various schemes for
protected areas management including bio diversity conservation. Out
of which Rs. 1469.62 lakhs were utilised under various schemes including
biodiversity conservation and eco – development.
Sanctuaries,
National Parks, Biosphere Reserves and other Protected Areas in Kerala
Name
of National Parkl Wildlife Sanctuary/Biosphere Reserve |
Area
In Sq. Km. |
Year
of Formation |
Peryar
Wildlife Sanctuary |
777
|
1950 |
Neyyar
Wildlife Sanctuary |
128
|
1958 |
Peechi-Vazhani
Wildlife Sanctuary |
125
|
1958 |
Parambikulam
Wildlife Sanctuary |
285
|
1973 |
Wayanad
Wildlife Sanctuary |
344.44
|
1973 |
Eravikulam
Wildlife Sanctuary |
97
|
1978 |
Idukki
Wildlife Sanctuary |
70
|
1976 |
Thattekkad
Bird Sanctuary |
25
|
1983 |
Peppara
Wildlife Sanctuary |
53
|
1983 |
Chimmony
Wildlife Sanctuary |
85
|
1984 |
Chinnar
Wildlife Sanctuary |
90.44
|
1984 |
Shendurney
Wildlife Sanctuary |
171
|
1984 |
Aralam
Wildlife Sanctuary |
55
|
1984 |
Silent
Valley National Park |
89.52
|
1984 |
Anamudi
Shola National Park |
7.5
|
2003 |
Mathikettan
Shola National Park |
12.82
|
2003 |
Pambadum
Shola National Park |
1.32
|
2003 |
Mangalavanam
Bird Sanctuary |
0.0274
|
2004 |
Kurinjimala
Wildlife Sanctuary |
32 |
2006 |
Choolannur
Pea Fowl Sanctuary |
3.42
|
2007 |
Total
( Sanctuaries and National Parks) |
2452.48
|
|
Biosphere
Reserve
|
i
NiIgiri Biosphere Reserve |
1455.4
|
1986 |
ii
Agasthyavanam Biosphere Reserve |
1701
|
2002 |
Top
Minerals
Kerala is endowed with a number of deposits such as heavy mineral
sand, china clay, iron ore, graphite, bauxite, silica sand, lignite,
lime shell, granite etc. However mining activities on large scale
are confined mainly to a few minerals such as heavy mineral sand,
china clay, silica sand, limestone and graphite. Heavy mineral sand
and china clay contribute more than 90 per cent of the total value
of mineral production in the State.
The Department
of Mining & Geology has taken up investigation programmes of urgent
nature for the benefit of the mineral based industries in the State
and for the general public as per the directions of the Government
from time to time. Based on the results of the reconnaissance and
preliminary geological surveys including pitting and trenching, the
Department takes up detailed exploration such as drilling, sampling
and preparation of contour map after conducting contour survey samples
collected during the investigation, are being analysed in the laboratories
which include china clay, silica sand, graphite, bauxite, limestone,
lime shell, stream sediments rock samples etc.
Investigation
for China clay had been conducted in Thiruvananthapuram, Kollam and
Kasaragod districts during 2006-07. The Department had prepared a
database on 1193 minor mineral quarries and 102 crusher units through
a survey covering 104 villages in Kollam, Kottarakara, Pathanapuram,
Karunagapally and Kunnathoor taluks of Kollam district and Thiruvananthapuram,
Neyyattinkara and Nedumangad taluks of Thiruvananthapuram district.Assessment
of availability of river sand in Kulathupuzha River was done during
2006-07. During the year 2006-07 the Department collected revenue
of Rs.2646.83 lakh.
Revenue
Collection of Mining & Geology Department (2006-2007)
Name of Office
|
Revenue
Collection (Rs. lakh) |
Major
Mineral |
Minor
Mineral |
Total
|
Thiruvananthapuram
|
106.28
|
184.07
|
290.35 |
Kollam
|
202.28
|
239.60
|
441.88 |
Pathanamthitta
|
- |
120.19
|
120.19 |
Kottayam |
20.66
|
104.57
|
125.23 |
Idukki
|
- |
72.71
|
72.71 |
Alappuzha |
24.55
|
25.48
|
50.03 |
Ernakulam
|
0.13
|
147.81
|
147.94 |
Thrissur
|
- |
232.15
|
232.15 |
Malappuram |
- |
232.41
|
232.41 |
Palakkad
|
232.69
|
183.16
|
415.85 |
Kozhikode
|
- |
164.85
|
164.85 |
Kasaragod
|
12.49
|
86.52
|
99.01 |
Wayanad
|
0.24
|
40.68
|
40.92 |
Special
Office Cherthala |
27.21 |
4.20
|
31.41 |
Kannur |
13.14
|
104.57
|
117.71 |
Kerala Mineral Squad (NR) |
- |
14.06
|
14.06 |
Kerala
Mineral Squad (SR) |
0.25 |
21.85
|
22.10 |
Directorate
|
14.33
|
13.70
|
28.03 |
Total |
654.25 |
1992.58
|
2646.83 |
The Department implements the provision of the Mines and Minerals
Act 1957 and the Rules. Mineral concessions for miner minerals are
sanctioned as per the Kerala Concessions Rules 1967. The various mineral
concessions in force as on 31.3.2007 are: Prospecting Licenses-Major
Minerals(15) and Minor Minerals(15); Mining Lease-Major Minerals (83);
Reconnaissance permit-Major Minerals(1) and Minor Minerals(771); Quarrying
Permit-Minor Minerals (2917); Quarrying Lease-Minor Minerals (361)
and Registered Metal Crusher- Minor Minerals (83).
Top
Banking
and Finance
Kerala
is ready to become a total banking state. Total banking state means
every house hold in the state would have at least one bank account
and would be eligible for a general purpose loan up to Rs.25000.
The SLBC
committee works with an action plan to attain the target within the
limited time frame. A wide variety of financial
institutions exist in Kerala. Financial stability measures were initiated
since early 1990s to strengthen the commercial banks and has emerged
stronger over the years. Very popular challenges that have faced by
the commercial banks are declining interest rate and reduced lending
margins. Impact of globalisation made Kerala’s financial markets
to integrate with the global financial markets. As such the volatality
in the latter makes its impact on our domestic financial market, even
found in the crisis movements in the SENSEX. The expansion of mutual
funds influenced the domestic banking system some extent.
Institutional
Finance
The disbursement
of credit by NABARD in Kerala during 2006-07 was Rs. 517.12 crore
including the disbursement towards KSCARDB. NABARD has disbursed an
amount of Rs.8795.02 crore at all India level against Rs.8622.37 crore
during 2005-06.
State
wise Financial Assistance Disbursed by NABARD during 2006-07 ( Amount
Rs. lakh)
Name
of State |
Disbursement
by NABARD |
Amount |
% |
Andrapradesh
|
96643
|
10.99 |
Assam
|
9315
|
1.06 |
Bihar
|
16806
|
1.91 |
Gujarat
|
59337
|
6.75 |
Haryana
|
58175 |
6.61 |
Karnataka
|
69891
|
7.95 |
Kerala
|
51712
|
5.88 |
Maharashtra
|
40087
|
4.56 |
Orissa
|
34414
|
3.91 |
Punjab
|
87960
|
10.00 |
Rajasthan
|
46926
|
5.34 |
TamilNadu
|
52235
|
5.94 |
Uttarpradesh
|
112257
|
12.76 |
WestBengal
|
52202
|
5.94 |
Total
|
832225
|
94.62 |
All
India Total |
879502
|
100 |
Source:
Annual Reports of NABARD 2006-07
Note: Percentages are to All India Total
State
wise Cumulative Financial Assistance Disbursed by NABARD as at the
end of March 2007(
Amount Rs. lakh)
Name
of State |
Disbursement
by NABARD |
Amount
|
% |
| Andrapradesh
|
992994
|
10.07 |
Assam
|
123021
|
1.25 |
| Bihar
|
282815
|
2.87 |
Gujarat |
497699
|
5.05 |
| Haryana
|
606730
|
6.15 |
Karnataka
|
666088 |
6.76 |
| Kerala
|
450757
|
4.57 |
Madyapradesh
|
547602
|
5.55 |
Maharashtra
|
841115
|
8.53 |
Orissa
|
350357 |
3.55 |
Panjab
|
831074
|
8.43 |
Rajasthan
|
543855 |
5.52 |
TamilNadu
|
704234
|
7.14 |
Uttarpradesh
|
1533205
|
15.55 |
WestBengal
|
482331
|
4.89 |
Total
|
9453877
|
95.90 |
All
India Total |
9858386
|
100 |
At the
end of March 2007, the total number of commercial bank branches in
Kerala was 3673. Of this 321 are rural branches, 2478 are semi- urban
branches and 874 are urban branches. Out of the total commercial banks
in the state, public sector banks account for 67.25% of the branch
net work in the state.
Advances
by Scheduled Commercial Banks
During
the current year Kerala received Rs.60615 crore against Rs.49153 crore
of 2006-07. The increase in advance by all commercial banks is Rs.11462
crore. Loans and advances of scheduled commercial banks registered
a robust growth of 30.6% during 2006-07 at all India level.
As per
State Level Bankers Committee (SLBC) statistics 2007, the total advances
disbursed by banks in Kerala as on March 2007 is Rs.68297 crore as
against Rs.55314 crore of 2005-06 which shows an increase of Rs.12983
crore. The State Bank group disbursed an amount of Rs.20737 crore
(30.36%) and private sector banks disbursed Rs.21351 crore (31.26%)
including IDBI bank which is the highest share in the total advance
outstanding in the state. The share of nationalised banks in the total
advance is Rs.19013 crore (27.8%) and that of co-operative banks is
Rs.4024 crore (5.9%).
Advances
by Public Sector Banks
Total advances by public sector banks in India amounted to Rs.1425655
crore during 2006-07 from which Kerala received a mere share of Rs.42724
crore. 15 major states received the major chunk of bank finance. The
highest amount of credit was received by Maharashtra Rs.375804 crore,
Tamil Nadu received Rs.123546 crore, Andhra Pradesh Rs.104451 crore
and Karnataka Rs.103832 crore.
Growth
of Bank Deposit
As per
RBI statistics, the total deposits by all scheduled commercial banks
at all India level in March 2007 is Rs.2598823 crore showing an increase
of Rs.505781 crore from the last year. The corresponding figures with
respect to Kerala during March 2007 is Rs.95282 crore with an increase
of Rs.15617 crore. Aggregate deposits of scheduled commercial banks
grew by 24.6% in 2006-07 as compared with 17.8% of last year. Maharashtra
is far ahead among the states by mobilizing the largest amount of
deposit of Rs.655402 crore (25.2%) in 2007 and Rs.489794 crore (23.4%)
in 2006. Uttarpradesh to second with Rs.181006 crore in March 2007
against Rs.151462 crore in March 2006. The Reserve Bank of India's
reports on Trend and Progress of Banking in India 2006-07, states
that Indian Commercial Banking system has achieved remarkable soundness,
dynamism and resilience. And that there is also a convergence in the
levels of soundness of public sector banks and new private banks.
However the RBI claim that the indicators of soundness for Indian
banks compare well with international standards is not convincing.
According
to SLBC (Kerala) report, the total bank deposit in Kerala increased
and reached Rs.94510 crore in March 2007 with an annual growth rate
of 21.07%. The total deposit in March 2006 was Rs.77677 crore. That
is an increase of Rs.16833 crore. This shows that state has poised
for a higher growth rate in total deposit during 2006-07. The NRE
deposits in Kerala increased to Rs.33304 crore as at March 2007. As
compared to March 2006 the NRE deposits increased by Rs.2633 crore
for the fiscal 2006-07, showing a growth of 8.58%. State Bank group
holds the highest share of Rs.12509 crore (37.56%) in the NRE deposits
followed by private sector bank with Rs.10599 crore (31.83%) and nationalised
banks with Rs.9695 crore (29.11%). The domestic deposit is also gradually
increasing in the state. The domestic deposit which was Rs.47006 crore
in March 2006, grown by 24.22% and reached Rs.58393 crore in March
2007.
NRE
Deposits
The
NRE deposits constitute 36.32% of the total deposits of commercial
banks in the state. There was a growth of Rs.2633 crore in NRE deposits
from Rs.30671 crore in 2006 to Rs.33304 crore in 2007 in the state.
Commercial banks of semi urban areas holds 69.61% of NRE deposits
while urban areas accounted for 23.54% and rural areas 6.85%. Growth
of bank deposits in Kerala from 1988 to 2007 are given below.
Growth
of Bank Deposit in Kerala 1988 to 2007
Year
|
Total
Deposit (Rs. crore) |
NRE
Deposit (Rs. crore) |
Domestic
Deposit(Rs. crore) |
Amount
|
Annual
Growth % |
Amount
|
Annual
Growth % |
Amount
|
Annual
Growth % |
2000
|
38619
|
22.5
|
18724
|
40.5
|
19895
|
9.3 |
2001
|
44850
|
16.1
|
21431
|
14.5
|
23419
|
17.7 |
2002
|
51656
|
15.2 |
24534
|
14.5
|
27122
|
15.8 |
2003
|
59399
|
15.0
|
28696
|
17.0
|
30703
|
13.3 |
| 2004
|
65961
|
9.95
|
30100
|
4.89
|
35861
|
16.8 |
2005
|
69396
|
5.21
|
29121
|
-3.25
|
40276
|
12.3 |
2006
|
77677
|
11.93
|
30671
|
5.06
|
47006
|
16.7 |
2007
|
94510
|
21.07
|
33304
|
8.58
|
58393
|
24.22 |
Source: SLBC, Kerala
Credit
Deposit Ratio
As per
RBI statistics, the credit-deposit ratio of all scheduled commercial
banks as on March 2007 stood at 75 percent which was 72.5 percent
during March 2006. The CD ratio at the end of March 2007 in the states
of Tamil Nadu, Maharashtra, Andhra Pradesh, Karnataka and Rajasthan
were higher than the all India level. As on March 2007 the highest
CD ratio was observed in Tamil Nadu (112.3%) followed by Maharashtra
(98%). At the bank group level the CD ratio was above the all India
ratio in respect of foreign banks (87.5%), State Bank of India and
its associates (78.2%) and was lower for other scheduled commercial
banks (74.1%), Nationalised banks (73.5%) and Regional Rural Banks
(58.7%). Considering the case of Kerala as on March 2007 the CD ratio
is 63.6% which was 61.7% in March 2006. As per the RBI statistics
on public sector banks alone, CD ratio at all India level is 74.31%
in March 2007 against 70.58% in March 2006. Here also Tamil Nadu stands
first with 108.15% in March 2007 against 102.44% in March 2006. Maharashtra
is just behind with 100.27%. The CD ratio of Kerala is 68.02 in March
2007 against 65.7 in March 2006.
On analysing
the SLBC report, it can be seen that CD ratio in the commercial banking
sector of the state has increased by 3.25% points during the financial
year to reach 70.09% in March 2007. When the CD ratio of major commercial
banks operating in Kerala are compared, the Bank of India stands first
with 103.95% and Syndicate Bank comes 2nd with a CD ratio of 78.03%
in March 2007. The performance of other banks are Central Bank of
India 73.47%, Union Bank of India 73.08%, State Bank of Travancore
68.65%, State Bank of India 68.4% and so on. CD ratios of selected
major banks operating in Kerala from 1992 to 2007 are furnished in
Table 17.6.
Credit
Deposit Ratios of Selected Major Banks operating in Kerala (as on
March 2007)
Name
of Bank |
2000
|
2001
|
2002
|
2003
|
2004
|
2005 |
2006 |
2007 |
State
Bank of India |
39.80
|
46.68
|
42.64
|
42.32
|
45.59
|
56.45
|
67.19
|
68.4 |
| State
Bank of Travancore |
45.97
|
46.00
|
46.13
|
48.06
|
50.89
|
56.67
|
62.74
|
68.65 |
| Canara
Bank |
36.95
|
37.41
|
42.45
|
45.84
|
50.09
|
59.91
|
67.32
|
61.23 |
Indian
Overseas Bank |
26.25
|
28.00
|
33.14
|
32.33
|
35.68
|
39.01
|
43.08
|
45.88 |
Syndicate
Bank |
34.94
|
32.79
|
31.00
|
34.17
|
41.27
|
63.26
|
70.27
|
78.03 |
Indian
Bank |
32..59
|
35.53
|
29.80
|
31.78
|
33.61
|
35.59
|
43.67
|
51.03 |
Bank
of India |
32.83
|
34.08
|
31.20
|
59.31
|
62.48
|
80.61
|
96.64
|
103.95 |
Central
Bank of India |
35.48
|
37.03
|
35.00
|
35.26
|
53.79
|
63.70
|
66.95
|
73.47 |
Union
Bank of India |
51.36
|
45.00
|
49.97
|
53.54
|
61.33
|
81.57
|
90.80
|
73.08 |
Vijaya
Bank |
31.05
|
44.28
|
40.51
|
44.44
|
56.90
|
57.06
|
60.09
|
58.95 |
State
Average |
41.28
|
42.77
|
42.71
|
45.47
|
48.31
|
61.39
|
68.70
|
70.09 |
The
District wise details of banking statistics in Kerala, shows that
the largest number of bank branches are in Ernakulam (544 Nos.), followed
by Thrissur (417 Nos.), and Thiruvananthapuram (383 Nos.). Ernakulam
district continued to stand first in mobilisation of deposits and
disbursement of advances with Rs.21852 crore and Rs.15891 crore respectively.
Wayanad stands last with Rs.579 crore as deposits and Rs. 907 crore
as advances. In the case of C.D. ratio Wayanad stands first with 156.6%
and Idukki stands second with 128.5%. Pathanamthitta stands last with
C.D ratio of 30%. C.D. ratio of Kozhikode is 84.3%, Kasaragode 79.7%,
and Ernakulam 72.7%.
Multi
Application Smart Cards in Banking
As
a part of technological developments in Banks, multi application
smart cards which is similar to a credit/debit/ATM cardcan function
as an identity card, as a driving license, as a health card
and also for other funds related purpose. The distinguishing
feature lines in the presence of a chip in the card which can
store information. The stored information in the chip could
either be permanent in nature or may be subject to change. Because
of its additional feature, smart cards find usage not only for
financial transaction processing but in a number of other areas
as well. One of the greatest advantage of the smart card technology
is its ability to consolidate multiple applications in a single,
dynamic card. This card simplify life for end users. With Indian
banking having embraced I.T in a large way, the potential for
usage of multi- application smart cards is high. Smart card
based electronic purse system, in which value is stored on the
card chip and not in an externally recorded account so that
machines accepting the card need no network connectivity. Thus,
the multi-application cards are beneficial for issuers as well,
especially because they provide the prospect to create unique
marketing opportunities. They are particularly suitable for
financial inclusion in remote parts of the country. |
Financial
Inclusion
Financial
inclusion refers to delivery of banking services at an affordable
cost to the vast sections of disadvantaged and low-income groups who
tend to be excluded from the formal banking channel.
Zero
Balance or No-Frills Accounts
Introduction
of zero balance or no-frills accounts has enabled the common person
to open bank account providing banking facilities closer to the customer,
especially in remote and unbanked areas, which keeping transaction
costs low, remains a challenge. The convener banks of SLBC were advised
to identify at least one district in each state for achieving 100%
financial inclusion by providing 'no-frills' account and issue of
general purpose credit card. So far, 160 districts have been identified
100% financial inclusion has been achieved in 28 districts in eight
states which includes Kerala also. All districts of Himachal Pradesh
have achieved financial inclusion. In view of the special thrust on
financial inclusion, co-operative banking has acquired renewed significance
in the Indian Financial System.
In
November 2005, banks were advised to make available basic banking
'no-frills' account with low or nil minimum stipulated balance as
well as changes that would make such accounts accessible to vast section
of the population with a view to achieving greater financial inclusion,
all banks were urged to give wide publicity to the facility of such
'no-frills' account. According to SLBC report, as at March 2007, banks
in the state have opened 933253 'no-frills' accounts. State Bank of
Travancore has opened the highest number of 'no-frills' accounts (430846)
followed by Canara Bank (187399) and Syndicate Bank (151839) during
2006-07. According to RBI statistics, between end of March 2006 and
end of March 2007, about 6 million 'no-frills' bank accounts were
opened all over India. Public sector banks accounted for a major share
of these new accounts due to their vast branch net work in rural and
semi urban areas. Financial inclusion is being viewed by these banks
as a huge business opportunity in rural and semi urban areas in an
environment of intense competition.
Housing
Loans
During
2006-07, banks in Kerala issued an amount of Rs.12564.33 crore to
504405 beneficiaries as housing loan, corresponding figures for 2005-06
are 10073.83 crore to 473442 beneficiaries. During 2006-07, finance
through direct housing was Rs. 12475.31 crore and that through indirect
housing was Rs.89.01 crore. State Bank of Travancore alone issued
Rs.2559.3 crore to 93474 beneficiaries, SBI disbursed Rs.2196.01 crore
to 52640 beneficiaries. Among the Nationalised banks Canara Bank stands
first with Rs.1008.9 crore to 31180 beneficiaries, Union Bank of India
goes to second place with Rs.720 crore to 23996 beneficiaries. Federal
Bank issued Rs.1312.53 crore to 42169 beneficiaries, South Indian
Bank disbursed Rs.277.29 crore to 9226 beneficiaries.
Educational
Loans
As at
the end of March 2007, Banking sector in Kerala disbursed an amount
of Rs.1836.29 crore to 145947 beneficiaries as Educational Loans.
State Bank group disbursed Rs.889.01 crore to 69173 beneficiaries,
Nationalised bank group disbursed Rs.754.8 crore to 59470 beneficiaries,
RRB's disbursed Rs.39.82 crore to 5309 beneficiaries and private sector
bank group disbursed Rs.143.95 crore to 11126 beneficiaries. Here
also State Bank of Travancore issued Rs.698 crore to 59958 beneficiaries,
Canara Bank disbursed Rs.276.57 crore to 22439 beneficiaries and Federal
Bank disbursed Rs.96.91 crore to 7525 beneficiaries.
Advances
to Weaker Section and SC/ST
During
2006-07 an amount of Rs.9255.68 crore has been disbursed to 2750797
beneficiaries of weaker sections in the state in which Rs.978.29 crore
was to 350934 SC/ST beneficiaries. The corresponding advances during
2005-06 were Rs.7221.57 crore and Rs.734.53 crore respectively. Weaker
sections advances grew by Rs.2034 crore during the last fiscal and
year to year increase as at March 2007 was 28.17%.
Micro
Finance
With
a view to developing a supplementary credit delivery systems that
is cost effective and user friendly for both banks and the poor, micro
finance initiatives encouraged in India. These initiatives have been
centered around two models (1) the SHG Bank Linkage Programme and
(2) the Micro Finance Institutions.
The SHG
Linkage Programme launched by NABARD in 1992 continued to be the predominant
Micro-Finance model in the country. According to SLBC report during
2006-07 about 1.69 lakh SHGs have been linked in the state under the
SHG bank linkage programme of which 1.36 lakh SHG's are exclusive
women SHG's (80.93%). During the year 2006-07, 686408 new SHGs were
credit linked with banks at all India level as against 620109 during
2005-06. At all India level the cumulative number of SHGs, credit
linked with banks up to March 2007 was 2.92 million. As
per RBI statistics during 2006-07, 4.57 existing SHG's received repeat
finance as against 3.45 SHGs in the previous year. The total bank
loan disbursed to SHG's during 2006-07 was Rs.6643.19 crore as against
Rs.4499 crore during the previous year. The cumulative bank loan disbursed
to SHGs up to March 2007 was Rs.18041 crore. As on March 2007 about
1.75 lakh SHGs maintain savings account having Rs.97.27 crore with
commercial banks. The state bank group which disbursed Rs.44.75 crore
to 81689 SHGs comes first in the state. About 81.12% of the SHGs are
exclusive women SHGs.
Other
Financial Institutions
There
are other financial institutions to provide financial support to respective
private and public sector under takings in various sectors. These
institutions constitute a group of professionals from various fields
including engineering, management, finance, and law.
1.
Kerala Transport Development Finance Corporation Ltd. (KTDFC)
www.ktdfc.com
KTDFC,
a Kerala Government owned Non Banking Financial Company registered
under the Reserve Bank of India, offers vehicle loan packages to both
individuals and transport operators ranging from two wheelers to heavy
commercial vehicles with low diminishing EMI rates, hassle free procedures
and premature closure options which in turn ensure more savings to
the customers. KTDFC accepts deposits from the public. These deposits,
guaranteed by the Government of Kerala, ensure 100% security and extra
earnings.
2. Kerala Finacial Corporation (KFC)
www.kfc.org
KFC covers
schemes like Term Loans, Working Capital finance and Short Term apart
from schemes focused at the weaker sections of the society extending
equity type assistance (National Equity Fund). Modified revolving
Fund, Modernisation schemes for SSIS, tourist homes and hospitals,TV
serial production are innovative schemes introduced to suit changing
customer requirements. The Corporation also plays a major role in
the development and industrialisation of Kerala by extending financial
assistance to suit the requirementsof the enterpreneurs.
3.
Kerala State Industrial Development Corporation Ltd. (KSIDC)
www.ksidc.org
KSIDC,
State's one and only agency for industrial development and promotion
fully owned by the Government of Kerala, is a nodal agency for foreign
and domestic investments in Kerala. The agency provides comprehensive
support for investors. Also the agency advises the state government
on key facets of the state’s industrial policy and organises
promotional campaigns both in India and abroad.
4.
Kerala SIDCO
www.keralasidco.com
Kerala
SIDCO, a Public Sector Undertaking of the Government of Kerala, acts
as a Promotional Agency for Small Scale Industries. This Corporation
is rendering assistance to SSIs in the State through providing infrastructure
facilities, distribution of essential raw materials, marketing of
the SSI products, undertaking civil and electrical works etc. Kerala
SIDCO also supplies Bitumen to Local Bodies as Nodal Agency and Paraffin
Wax to small scale industries.
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