EXECUTIVE SUMMARY District characteristics : Sectoral trends in credit flow : 3. Sector/sub-sector wise projections for :

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1 EXECUTIVE SUMMARY 1. District characteristics : Udupi district is one of the 3 coastal districts of the State with a total geographical area of 3,56,446 ha., of which 28% is covered by forests. 90% of the farmers are SF/MF with an average land holdings size of around 1 ha. Agriculture is the predominant economic activity in the district. The Net Sown Area (NSA) and Gross Cropped Area (GCA) are 0.98 lakh ha and 1.13 lakh ha respectively. About 35% of the NSA is under irrigation. Paddy is the major kharif crop. Farmers are also engaged in raising plantation/horticulture crops like Coconut, Arecanut, Cashew, etc. Fisheries is another major economic activity in the district. There were more around 10,000 MSE units (including Food & Agro processing units) with around 400 units being set up every year. Well connected by air, sea and road, the district is an education hub and also known for religious tourism. Medical facilities available in the district are state of the art. 2. Sectoral trends in credit flow : The banks in the district have not been able to achieve the targets specified under the District Credit Plan in the previous three years. The ground level credit flow under Priority Sector during , and stood at `1, crore, `2, crore and `2, crore respectively. The CD ratio of the district has been hovering around the 50% mark in all these years. 3. Sector/sub-sector wise projections for : The exploitable potential for was estimated at `4,04, lakh in the base PLP. The same has since been revised to `5,66, lakh. Agriculture sector accounts for a major share of 52% of the total projections. The realization of potential would however, largely depend on the removal of various constraints and developing the critical infrastructure as discussed below. 4. Major constraints : Last mile road infrastructure requires to be developed in many villages to enable farmers to have easy access/connectivity to nearby markets. Harnessing runoff rainwater for irrigation purposes is imperative to bring more land under irrigation Enabling provisions needs to be put in place to permit farmers to cultivate on vacant/leased lands without affecting the rights of the landowner and to avail crop loans from banks. Lack of post harvest infrastructure like cold chains, grading and packing houses and erratic power supply are the other bottlenecks which needs to be addressed. 5. Suggested Action points/issues to be addressed State Government a. Strengthening the extension network and training on soil, water conservation. b. Creation of model horticulture farm/ strengthening of post harvest infrastructure c. Strengthening the infrastructure of veterinary institutions for providing breeding/ health services to farmers at door-step and setting up of disease diagnostic labs. d. Early operationalisation of Nandikur and Belepu Industrial Areas e. Ensure regular & assured power supply to existing and prospective industrial unitspromote use of solar irrigation pump sets and solar roof-tops. Banks a. Need to resort to alternative modes of lending including JLGs b. To lend to farmers on the strength of negotiable warehouse receipts c. Finance small Lift Irrigation Schemes, preferably under SHG/ JLG mode. d. Finance construction of artificial recharge structures of bore wells for irrigation, rain water harvesting structures, farm ponds, roof water harvesting system, etc. 6. Thrust areas for a. Mainstreaming the financially excluded : The past year has seen a number of steps taken towards promoting financial inclusion in a big way viz., the Pradan Mantri Jan Dhan Yojana (PMJDY), Prime Ministers Social Security Schemes, Mudra Yojana etc. Mainstreaming these account holders into the banking fold would continue to be a thrust area for b. Accelerating the pace of capital formation in agriculture and allied sector : Banks to give 2

2 thrust for agriculture term loans with focus on loans for land development, water resources and farm mechanization activities. This would create farm assets that in turn would lead to capital formation in agriculture. c. Promotion of JLGs : Banks need to switch to JLG mode of lending, at least when lending to individual farmers is not possible due to land title/other related issues. d. De-risking farm income : Given the uncertainties in yield due to vagaries of nature, there is a need to de-risk the farm incomes. Banks may explore financing allied activities like minidairy /broiler poultry etc. e. Area Development Plan and Developmental Thrust Areas for the district: Three villages in Udupi taluk for vegetable cultivation and Karkala taluk for dairy are identified by NABARD for further development. f. NABARD & Department of Horticulture have promoted a number of FPOs/crop specific clusters in all the taluks. Bankers, on their own are encouraged to adopt such models and extend cluster based financing to farmers. 7. The way forward : The projections made in the PLP for call for coordinated approach by all stakeholders viz., Government, Banks, Government departments, extension agencies, NGOs etc, which in turn are expected to significantly enhance capital formation in agriculture. Banks on their part are required to ensure timely reporting of credit flow data to the Lead Bank so that timely/corrective action, if required, could be initiated through discussions in the various fora, viz, DCC, DLRC, etc. Broad Sector wise PLP projections (Amt ` lakh) Sr.No Particulars PLP Projections A Farm Credit i. Crop Production, Maintenance and Marketing 99, ii. Term Loan for Agriculture and Allied Activities 81, Sub-total 1,81, B Agriculture Infrastructure 34, C Ancillary Activities 75, I Credit Potential for Agriculture (A+B+C) 2, II Micro, Small and Medium Enterprises 51, III Export Credit 15, IV Education 36, V Housing 99, VI Renewable Energy 5, VII Others 58, VIII Social Infrastructure involving bank credit 8, Total Priority Sector (I to VIII) 5,66,

3 Summary of sector/sub-sector wise PLP projections Sr.No. Particulars PLP projections I Credit Potential for Agriculture A Farm Credit i. Crop Production, Maintenance and Marketing 99, ii. Water Resources 8, iii Farm Mechanisation 4, iv Plantation and Horticulture including Sericulture 18, v Forestry & Wasteland Development vi Animal Husbandry - Dairy 9, vii Animal Husbandry - Poultry 10, viii Animal Husbandry - Sheep, Goat & Piggery 3, ix Fisheries 26, x Others Sub total 1,81, B Agriculture Infrastructure i Construction of storage facilities (warehouses, market yards, godowns, silos, 4, cold storage units/ cold storage units) ii Land development, soil conservation, watershed development 26, iii Others (Tissue culture, agri bio-technology, seed production, bio pesticides/fertilisers, vermi composting) 4, Sub-total 34, C Ancillary Activities i Food and Agro Processing 74, ii Others (Loans to Coop. Societies of farmers for disposing of their produce, AC/ABC, loans to PACS/FSS/LAMPS, loans to MFIs for on lending) 1, Sub-total 75, Total Agriculture 2,91, II Micro, Small and Medium Enterprises i MSME, Working Capital 40, ii MSME - Investment Credit 11, Total MSME 51, III Export Credit 15, IV Education 36, V Housing 99, VI Renewable Energy 5, VII Others (Loans to SHGs/JLGs, Loans to distressed persons to prepay non institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) 58, VIII Social infrastructure involving bank credit 8, Total Priority Sector 5,66,

4 UDUPI DISTRICT PROFILE 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 3582 Agro-climatic Zone Western Plains and Ghat- Coastal Midland(Zone-12) No. of Sub Divisions 9 Climate Dry and Humid No. of Blocks 3 Soil Type Laterite, red loamy, coastal alluvium No. of Villages (Inhabited) 233 No. of Panchayats LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER (Data from IMD) Total Area Reported Normal Forest Land Rainfall [mm] 4234 Actual Land Not Available for Cultivation Variation from Normal (-)182 (-)100 (-)331 Permanent Pasture and Grazing Land Avail. Of gr. Net annual recharge Net annual draft Balance Water [Ham]. Land under Misc. Tree Crops Cultivable Wasteland DISTRIBUTION OF LAND HOLDING (2011 Census) Current Fallow 1197 Holding Area Other Fallow Classification Nos. % to Total Ha. % to Total Net Sown Area <= 1 Ha Total or Gross Cropped Area >1 to <=2 Ha Area Cultivated More than Once >2 Ha Cropping Intensity [GCA/NSA] % Total WORKERS PROFILE [ 000] (2011 Census) 7. DEMOGRAPHIC PROFILE - [ 000] (2011 Census) Cultivators 63 Category Total Male Female Rural Urban Of above, Small/Marg. Farmers 57 Population Agricultural Labourers 63 Sch. Caste Workers in Household Industries 106 Sch. Tribe Workers in Allied Agro-activities - Literate Other workers 376 BPL card holders 8. HOUSEHOLDS [ 000] (2011 census) 9. HOUSEHOLD AMENITIES [ 000] (2011 census) Total Households 252 Having brick/stone/ concrete houses Rural Households 178 Having source of drinking water BPL Households(Dist.at glance) 114 Access to banking services 246 Having electricity supply Having latrines Having tv sets VILLAGE-LEVEL INFRASTRUCTURE 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION Villages Electrified 233 Anganwadis 1146 Dispensaries 14 Villages having Agriculture Power Supply 233 PHCs 59 Hospitals 68 Villages having Post Offices 233 Comm. Health Sub 6 Hospital Beds 3628 Cent Villages having Banking Facilities INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 233 Fertiliser/Seed/Pestici de Outlets Villages having Potable Water Supply 233 Total N/P/K Consumption [MT] Villages connected with Paved Approach Roads 233 Certified Seeds Supplied [MT] Pesticides Consumed [MT] NA Agriculture Pumpsets Pumpsets Energised Agro Service Centres 1650 Soil Testing Centres Nil NA NA 2 5

5 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors Total Area Available for Irrigation (NIA + Fallow) Irrigation Potential Created Threshers/Cutters Net Irrigated Area(Total area irrigated at least once) Area irrigated by Wells Rural/Urban Mandi/Haat Area irrigated by Tubewells 533 Length of Pucca Road [Km] Area irrigated by LIS 2483 Length of Railway Line [Km] Area irrigated by Other Sources 5158 Public Transport Vehicle Irrigation Potential Utilized (Gross Irrigated Goods Transport Vehicle Area) 217 Plantation nurseries Power Tillers 240 Farmers' Clubs 132 Nil Krishi Kendras Vigyan INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING (Dist. Statistica Handbook ) NA 6 Wholesale Market - 6 Regulated Godown NA Godown Capacity[MT] NA 1959 Cold Storage Cold Store Capacity[MT] 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] Crop Avg. Yield [Kg/Ha] Food-& Agro based 2722 NA Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) Yield (Kg/Ha) Sugarcane (Gur/Sugar) Nil NA Paddy Fruit (Pulp/Juice/Fruit drink) 173 NA Arecanut Spices (Masala Powder/ Paste) Nil NA Cashewnut Cotton (Textiles and garments) 1024 NA Coconut- 000 nuts Milk(Chilling/Cooling/Processing) 22 NA Banana Meat (Chicken/Mutton/Pork) 2 NA Animal feed(cattle/poultry/fish) 13 NA 17. ANIMAL POPULATION AS PER CENSUS INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of animal Total Male Female Veterinary Hospitals/ 86 Animal Markets - Dispensaries & Prim. Vet. Centres Cattle - Cross Mobile Veterinary Clinics 3 Milk Collection Centres 315 bred['000] Cattle Indig ['000] Artificial Insemination Centers 0 Fishermen Societies 44 Buffaloes['000] Animal Breeding Farms - Fish seed farms 1 Sheep - Cross bred Animal Husbandry Tng Centres Fish Markets 109 Sheep Indig. (No) Dairy Coop Soc. 315 Poultry hatch. - Goat (No) Improved Fodder Farms 2 Slaughter houses 1 Pig - Cross bred (No) MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig Indigenous (No) Fish Production [MT] Per cap avail. [gm/day] Rabbits Egg Production [Lakh Nos] 537 Per cap avail. [nos/p.a.] 46 Poultry - Cross bred (000) Milk Production [000 MT] 157 Per cap avail. [gm/day] 365 Poultry - Indigenous Meat Production [MT] 2287 Per cap avail. [Kg/pa] 1.94 Sources (1) District Statistical Handbook 2014 (2) Census data (3) National Livestock Census 2012 & (4 Horticulture Department, Udupi (5) Fisheries Department 20 Rainfall : The district is characterized by high rainfall in excess of 4000 mm per annum (mostly received during June to October). Normal rainy days during the year range from

6 BANKING PROFILE State : Karnataka Lead Bank : Syndicate Bank Agency No. of Banks Soc. 1. NETWORK & OUTREACH (As on 31/03/2015) No. of Branches No. of non-formal agencies associated 8 Per Branch Outreach Total Rural Semiurban Urban mfis/mf Os SHGs/JLGs BCs/BFs Villages Households Commercial Banks Regional Rural Bank Dist.Cent.Coop. Bank PCARDB PACS NA NA Others ( KSFC) 1 1 NA NA All Agencies DEPOSITS OUTSTANDING Agency No. of accounts Amount of Deposit [` 000] 31-Mar Mar Mar-15 Growth Share 31-Mar Mar Mar-15 Growth Share Commercial Banks Regional Rural Bank Dist.Cent.Coop. Bank Others All Agencies LOANS & ADVANCES OUTSTANDING AS ON Agency No. of accounts Amount of Loan [` 000] 31-Mar Mar Mar-15 Growth Share(% 31-Mar Mar Mar-15 Growth Share ) Commercial Banks 31-Mar Mar Mar-15 Growth Share(% Regional Rural Bank ) Cooperative Banks Others All Agencies CD-Ratio 5. Performance under Financial Inclusion Accounts Agency CD Ratio Agency During Cumulative 31-Mar Mar Mar-15 Deposit Credit Deposit Credit Commercial Banks Commercial Banks Regional Rural Bank Regional Rural Bank Cooperative Banks Cooperative Banks Others ( KSFC) Others All Agencies All Agencies PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Agency Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Amount [` 000] Amount % of Amount % of Amount % of Total Amount % of Total Amount % of Total [` 000] Total [` 000] Total [` 000] Loans [` 000] Loans [` 000] Loans Commercial Banks Loans Loans Regional Rural Bank Cooperative Banks Others ( KSFC) All Agencies

7 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Agency Average Target Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment [` Ach'me Ach[%] [`'000] [` '000] [%] [`'000] [` '000] [%] [`'000] '000] nt [%] last 3 years Commercial Banks Regional Rural Bank Cooperative Banks Others ( KSFC) All Agencies SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS [Amount ` 000] Broad Sector Average Target Ach Ach [%] Target Ach Ach [%] Target Ach Ach [%] Ach[%] in Crop Loan last 3 year Term Loan (Agr) Total Agri. Credit Non-Farm Sector Other Priority Sec Total Priority Sector RECOVERY POSITION ++ Agency Average Rec. [%] Demand Recover Recover Deman Recovery Recovery Demand Recovery [` Recovery in last 3 years [` '000] y [` '000] y [%] d [` [` '000] [%] [` '000] '000] [%] Commercial Banks NA NA NA '000] NA NA NA NA NA NA NA Regional Rural NA NA NA NA NA NA NA NA NA NA Bank Cooperative Banks NA NA NA NA NA NA NA NA NA NA Others NA NA NA NA NA NA NA NA NA NA All Agencies NA NA NA NA NA NA NA NA NA NA *** as per SLBC feedback. ++ data not available with LDMs office. 10. Performance of Banks Business: The total deposits outstanding of all banks in the district stood at `15, crore, while the total loans and advances outstanding stood at `8, crore. The deposits outstanding as on grew at 14.4% as compared to the position as on , while loans and advances outstanding during the same period, grew at 20.4%. The CD ratio of the district as on stood at 51.70%, much below the prescribed level of 60%. One of the reasons for the low CD ratio is that deposits growth in the past had always been outpacing the loan growth of banks. Further, there are also a large number of PACS & other cooperatives, which are financially strong and meet the credit requirement of their members. Advances made by such institutions do not get reflected in the CD ratio District Credit Plan: Banks in the district could not achieve the District Credit Plan targets for As against the annual DCP target of `4, crore for , the total disbursements as per SLBC feedback stood at `2, crore and recorded an achievement of 58.67%. 11. Financial inclusion plan: Extending banking services in villages with population of more than There were 195 villages with a population of more than 2,000. Of these, 123 villages were unbanked. All the villages with population above 2,000 have been covered by either a brick and mortar branch or by way of a BC. Of the 123 villages 36 villages were covered by brick and mortar branch, while 87 villages were covered by a BC. Road map for providing banking service in every village with population less than 2,000 All the 50 villages with a population of less than 2000 have been covered. 9