National Seminar on Agricultural Credit Silver Jubilee Celebrations

NABARD 25 YEARS OF DEDICATION TO RURAL PROSPERITY

NABARD completed 25 years of its eventful and trailblazing existence on 12 July 2007. Established in 1982, by an Act of Parliament, NABARD's mandate was to provide focused and undivided attention to the development of rural India by facilitating credit flow for promotion of agriculture and rural non farm sector. Emphasizing this in no uncertain terms, its mission statement underscores NABARD's goal to "promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives". NABARD's functions can be classified into 4 major categories viz. Credit Planning, Financial Services, Promotion and Development, and Supervision. Under Credit Planning NABARD prepares Potential Linked Credit Plan (PLP) annually for each district of the country by assessing potential available in agriculture and rural sector. This serves as a guide for banks and Government agencies to prepare their own investment and credit plans in the district and state. Under its Financial services, it refinances commercial, co-operative and regional rural banks for lending to on farm and non-farm activities. This includes farm activities like minor irrigation, animal husbandry, farm mechanization, forestry, fisheries, land development, horticulture, plantation and medicinal crops and non-farm like rural industries, artisans, handicrafts, handlooms, rural housing, rural tourism and agro processing. Refinance is provided by NABARD for both long term investment credit as well as short term production credit for crop loans and working capital for non-farm activities. A nationwide network of 28 regional offices at the state capitals, a sub-office at Port Blair and 391 district development offices are at hand to cater to this awesome

task. Clearly NABARD's benevolent hand has been silently at work in supporting rural resurgence in various ways and its stakes are quite enormous. A glance at the figures will give a fair idea. It has channelised a whopping Rs. 1,21,000 crore under its investment credit programme and RIDF since inception, which includes Rs. 8795 crore disbursed during 2006-07. Under production credit the Bank sanctioned limits of Rs. 12570 crore during 2006-07. NABARD has effectively brought in a number of innovations in the rural credit domains. To quote a few: Formation and Linkage of Self Help Groups, Farmers Clubs, Rural Infrastructure Development Fund, Watershed Development, Kisan Credit Card, District Rural Industries Project, Cluster Development Programme and Rural Innovation Fund. Self Help Groups (SHGs) Farmers Clubs Rural Infrastructure Development Fund (RIDF) Watershed Development Tribal Development and WADI approach Women and Development District Rural Industries Project (DRIP) Rural Entrepreneurship Development Programme (REDP) Rural Marketing Revival of Short-Term Rural Co-operative Structure (STCCS) Rural Innovation Fund NABARD Consultancy Services (NABCONS) Co-Financing Self Help Groups (SHGs): One of the major success stories of NABARD, the SHG Bank linkage programme started as a pilot project in 1992 with 500 SHGs. SHGs comprise homogeneous groups of poor people who have voluntarily come together mainly with the idea of overcoming their common problems of low social and economic status. SHGs enable the poor, especially the women from the poor households, to collectively

identify, prioritize and tackle the problems they face in their socio economic environment. By pooling their meager resources and using them for lending among themselves, they develop the habit of thrift and the skill of credit appraisal, before getting mature enough to access a loan from banks, which is called credit linkage. Starting with small loans for consumption they soon graduate to bigger loans for setting up of income generating micro-enterprises. Today, NABARD's SHG Bank Linkage Programme boasts of over 26 lakh SHGs and 3.9 crore households influencing the lives of over 16 crore poor population. During the year 2006-07 alone, as many as 458591 groups were credit linked. go to top Farmers Clubs A popular intervention among both farmers and Bankers, the farmers Club concept was envisaged as an experiment in social engineering, a forum to bring the rural banker and the borrower closer and to propagate the principles of development through credit. Farmers Club is an informal group of 15-20 farmers, one per village, which acts as a medium for accessing and disseminating awareness of modern methods of farming and technological advancements in agriculture in its area. Financial support is provided by NABARD for opening and maintenance of Clubs as well as for organizing training programmes in the respective villages. With corporates and food chains looking for supply chain linkages of farm produce, Farmers Clubs may have an important role to play in joint production and marketing of farm produce. As on 31 March 2007 , there were Farmers Clubs in 534 districts covering 48763 villages. Rural Infrastructure Development Fund (RIDF): Deficient Rural infrastructure hinders both social and economic development. Economists have explicitly emphasized on the direct correlation between the index of infrastructure development and rural development. NABARD's support to State Governments through RIDF since 1995-96 has brought about a sea change in the shape of upgraded infrastructure in rural areas. Rural roads and bridges under RIDF have improved market access to farmers; check dams and irrigation structures have augmented their water resources. Even drinking water projects and health centres have been supported under the Fund. NABARD so far has sanctioned Rs. 61539 crore for 2,44,025 projects under the Fund. A cumulative position of sector-wise sanctions as on 31 st March 2007 : Irrigation: Rs. 20637 crore, Rural connectivity: Rs. 26935 crore for rural road network and bridges, Power: Rs. 1434 crore Social Sector: Rs. 6988 crore Others: Rs. 5547 crore. A separate window has been created for rural connectivity with villages of population less than 500, with a corpus of Rs. 4,000 crore to support the Bharat Nirman project.

go to top Watershed Development: In a comprehensive effort to enhance productivity of dryland through conserving soil, rainwater and irrigation, NABARD embarked on perfecting its experiments in creating a sustainable cost effective solution to the water harvesting techniques in rural areas. Building on its experience with the KFW funded watershed development programme in Maharashtra , NABARD established a Watershed Development Fund with an initial corpus of Rs. 200 crore in 19992000 which now stands at Rs. 602.76 crore. The programme is now being replicated in 124 districts of 14 States. Tribal Development and WADI approach : With over 8% of the population comprising tribals largely dependent on forests, livestock and agriculture, NABARD found a holistic approach by addressing production, processing and marketing of the produce with WADI as the core of the programme. WADI (small orchard) was found to be an effective tool for arresting migration of tribals from their native habitat. The WADI model evolved out of concerted efforts made in association with Bhartiya Agro Industries Foundation (BAIF). The project also envisages other development interventions like environment, gender and health. Having completed 10 years in Gujarat and 5 years in Maharashtra , the programme has touched 275111 families in 410 villages. go to top Women and Development Women constitute one third of the labour force. In order to give focus to women in various development activities and increase their access to Bank credit, schemes like Assistance to Rural women in Non-farm Development (ARWIND), Assistance for Marketing of Non- Farm Products of Rural Women (MAHIMA), Development of Women through Area Programme (DEWTA) have been designed to provide exclusive support to women in rural areas. District Rural Industries Project (DRIP): NABARD launched DRIP, an integrated area-based credit intensification programme, in collaboration with Government, banks and other development agencies with district specific focus. It was introduced in 1993-94 with the objective of creating sustainable employment opportunities in 106 districts all over the country. go to top

Rural Entrepreneurship Development Programme (REDP): In order to generate employment in rural areas, it was felt necessary to develop the entrepreneurial skills of the rural youth. REDP is a promotional programme supported by NABARD to motivate and train educated unemployed rural youth, to set up their own enterprises. So far, 2.32 lakh persons have been trained under the programme under 7792 REDPs. Rural Marketing: A number of marketing interventions have been made for marketing of rural non-farm products since marketing is a key factor in the sustainability of any such endeavour. With the financial support of NABARD under its promotional programmes like Rural Haats, Rural Marts, participation in fairs, exhibitions and marketing melas, rural artisans and entrepreneurs can get a larger market for their produce and showcase their talent to urban and upcountry markets. go to top Revival of Short-Term Rural Co-operative Structure (STCCS) NABARD is the implementing agency for the Revival package for the STCCS which mean the State Coop. Banks, District Coop. Banks and the Primary Agricultural Coop. Societies. (PACS). The revival package has been approved by the Govt. of India based on the recommendations of the Vaidyanathan Committee. NABARD has had dialogues with State Govts. and so far 10 states have executed MOU with GoI and NABARD. Apart from being on the national, state and district level implementing committees, NABARD has designed guidelines and training manuals for the special audit of PACS under the Package. Rural Innovation Fund: In association with Swiss Agency for Development and Cooperation (SDC), NABARD has constituted the NABARD SDC Rural Innovation Fund (RIF) to support innovative projects in Farm, NonFarm and Micro-Finance Sectors leading to creation of livelihood opportunities for the poor. Government and Non-Government Institutions, corporate bodies, financial institutions and individuals can avail funding support for activities involved in development of new products, processes, prototypes, technology etc. which have the poor in their focus. go to top NABARD Consultancy Services (NABCONS)

NABCONS is a wholly owned subsidiary of NABARD, which has established itself as a dependable and professional consultancy services provider in agriculture and allied activities. As on 31 March 2007 , it has cumulatively contracted 487 national and international assignments involving consultancy fee of Rs.25.49 crores. Co-Financing It has been the experience that Banks are wary of taking credit risk of financing high tech/large scale/ export oriented agricultural projects or those involving sunrise technologies. To instill confidence in banks and ensure credit flow to such projects, NABARD has entered into agreements for co-financing with 14 commercial banks. During 200607, seven projects were sanctioned with bank loan of Rs. 145.03 crore and NABARD's share of Rs. 72.42 crore. Floriculture, organic farming, milk processing, ethanol production and agro processing are among the projects sanctioned so far. Nabard
Human Resources:

As on March 31,2011, the total number of staff in NABFINS was 62 of which three are deputed from NABARD- namely the Managing Director and two Deputy General managers. They are deputed full time to NABFINS. NABARD has agreed to meet the expenses incurred on the two Deputy General Managers for a period of five years. The MDs costs are met by NABFINS. The tenure is for a period of 2 years which can be extended by a year based on the requirements of NABFINS (Annexure 1 provides details of Staff .)
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Field Staff: The two major categories are District Managers and Financial Service Officers. District Managers. There are 19 DMs in place of which 13 are in Karnataka, 5 in Tamil Nadu and one in Andhra. DMs are generally just retired officers from Commercial Banks ; there are also a few from NGOs and MFIs. They are short listed through an interview. Those short listed undergo 5 days of training and exposure during which time they visit NABFINS' partners and devote 2-3 days together with NABFINS' senior staff in a rural area. The objective of this exercise is to acquaint them with NABFINS' principles, framework of functioning with the business model and systems as well as to assess their capability to interact with others, to build lasting partnerships based on mutual respect and willingness to take decisions in time. Their commitment and professional credentials are also assessed on the basis of their performance in the financial institutions where they served. Given the risk involved in handling cash directly to SHGs it is necessary

that the DMs have a record which engenders trust and confidence.

Other requirements looked for are i)Experience as Branch managers ii) A house in the District headquarters in which they are living and where NABFINS will place them; iii) working experience in the same district iv) reasonable good health v) no major domestic liabilities. The recruitment of just retired Bank officials who have a house in the District headquarters helps to keep costs down. They have at least 3 to 5 years of active service. Care is taken to select those who show commitment and initiative and who can work together with others and build healthy relationships with institutions (NGOs, Companies, Co-ops etc)
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Financial Service Officers: The FSOs report to the DMs. There are 32 FSOs in place. The number in each District depends on the volume of business. The largest number of FSOs is in Tumkur District (5)and the second largest in Bagalkot (3). Most of the other Districts have 2, and a few one. The FSOs undergo a similar process of interviews, exposure and training as the DMs. During training, the DMs and FSOs assigned to the respective districts are formed into teams to promote a rapport with each other and to assess their compatibility. Role of District managers and Field Service Officers. Annexure 2 for details : All DMs and FSOs are employed on a contract basis for one to three years. Head Office: Staff: There are 11 staff at HO: i) Managing Director (on deputation from NABARD); ii) Company Secretary; iii) Deputy General manager (on deputation from NABARD) - managing JLGs and Second level institutions (second and third verticals) with other organisational matters; iv) Deputy General Manager (on deputation from NABARD) - Administration, liaison with NABARD/shareholders; v) Chief Operations Officer - lending operations overall; managing BCs (first vertical); vi) AGM (Rtd. from Commercial Bank with experience in section 25 Company) Managing Staff matters; vii) Senior manager Accounts (formerly in NBFC/MFI). A risk management unit is being established at HO, with 2 branches in the field. There is a good blend of various experiences and backgrounds. Committees: i) Audit ; ii) Empanelment of BCs and training; iii) Investment; iv) Loan Sanction Committee and v) Purchase Committee Professional Organisations to whom NABFINS has outsourced functions: i) S & J Associates: Payroll processing, compliances under Labour Laws, submission of periodical returns/renewals etc, compliances under EPF & ESI Acts, remittances of contributions, compilation and submission of periodical returns, Professional Tax compliances; ii) Ravi, Sunitha & Suri Advocates for all legal matters related to loan documentation and opinion on service (staff)

matters etc. iii) IGS Imaging Services (India) Ltd: Recruitment - Data related to applications (NABFINS received about 1500 applications during the past 4 months; iv) Software development Several Refer to details under No 14 "Strategy to Acquire an Appropriate Technical Solutions." Auditors: Internal Auditors: M/s B.S. Chandrasekhar & Co.; Statutory Auditors: M/s Holla & Co Comptroller and Auditor General of India

5. Pre sanctioning Appraisal:

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Process for selection of Business Correspondent o An NGO with good track record which has been in existence for at least 3 years is eligible to be appointed as BC of NABFINS. o An NGO doing MFI activity is not eligible to be a BC of NABFINS. o Enquiries are made about the antecedents of the NGO with DDM- NABARD, local Banks including service area bank and Govt. departments. o The lists of RMK, CAPART are scanned to ensure that the organisation does not figure in the Black List Category. o Previous association with NABARD is desirable and is given due weightage. o FSO and DM visit the office of the shortlisted NGO and share NABFINS' Business model. If the NGO is interested to partner with NABFINS, an application is obtained in the prescribed format. o A list of SHG's promoted by the organization is collected giving the date of formation, date of meeting, place of meeting, details of savings of the SHGs. o The following aspects of the potential BC are scrutinized/assessed:  Composition of Board of Management  Profile & commitment of CEO  Adequacy of field staff  Infrastructure  Track record and potential for sustainability of NGO operation  Commitment & honesty of CEO & staff o NABFINS District staff visit the SHGs promoted by the NGO. The SHGs are selected randomly by the FSO/DM. During the discussion with SHGs, in addition to studying the book keeping & accounting aspects, the relationship of the NGO staff with the SHG is assessed; arrangements for supervision & handholding support are made. It is also ascertained whether the NGO is collecting any fee/charges from the SHGs. o Interaction is conducted with NGO's field staff to ascertain their sense of belongingness, honesty, integrity and commitment; these are important since they are going to

be our last mile agents if the NGO becomes a BC. Assistance is given to the BC in furnishing necessary information. All photocopies are verified with originals. o The District Office forwards the application, if recommended, in the prescribed format to Head Office. o An officer from HO visits the NGO for assessment. S/he visits both the office and also a few SHGs promoted by the NGO (which are selected randomly). S/he reviews the assessment of the NGO made by the District staff o A Committee comprising Chairperson and Managing Director approves the NGO proposed to be empanelled as BC. All three reports (FSO, DM & HO representative) are placed before the Committee to take a decision. o The Committee also recommends the exposure limit which is reviewed on an annual basis. o After approval from HO, the authorised signatories of the NGO/BC visit HO for execution of agreement; they also interact with senior staff. o As a BC, the NGO submits a DD/cheque for Rs. 50,000/- as security deposit at the time of executing the agreement. This is a requirement of the RBI. The amount of security deposit may change and is decided by the committee based on the total exposure as well as on the duration of the cash exposure that the BC has from the time the repayment is collected to the time it is credited to NABFINS account. Assessment of Groups: There are three steps to assess a group:
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Step 1: A Survey Sheet is given to all the members of the group to capture their family incomes and liabilities. NABFINS believes that the loan to an individual member of the group is loan to a family and thus the income and liability of the family is assessed. Individual members of the groups, with or without, the assistance of the NGO staff fill up the survey sheet. The group discusses the individual survey sheet of all the members in the group meeting. Then the requirement of the loan is discussed within the group factoring the incomes and liabilities of the individual members of the group. The BC staff collect the consolidated demand of the group and recommend (or not) the group to NABFINS for lending. Step 2: Meeting 1: In this meeting the District Manager along with the FSO read out to the group the information on the survey sheet and the details of the loan that the group/ individual members have applied for. The FSO/DM along with the BC representative validates the survey sheet and loan requirements in this meeting. The group is graded (on the basis of a grading sheet) on financial and non financial parameters. The group has to qualify in both the segments separately. After discussion with the SHG along with BC staff and FSO/DM, the loan amount is arrived at. The District Manager recommends the loan for the group in a specific format containing details of the group like corpus of the group, previous loan status etc and

sends the format to the Head office for a decision. . Step 3: Meeting 2: This meeting takes place after approval of the loan and before the disbursement to the group. In this meeting the loan documentation is verified and all the terms and condition of the loan are read out to the group in the local language. The group is given the sanction letter with terms and conditions in the local language; attention is drawn particularly to the repayment schedule and interest rates, and agreement is sought. The loan is then disbursed and recorded in the minutes book of the group. A condition for the disbursement is the presence of all the members in the meeting.
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Assessment of Loan to 2nd level institutions: Second level institutions seeking loans submit details of the institutions and the purpose of loans in a prescribed format. The loan application is appraised by designated representatives from NABFINS HO, who undertake the field visit and recommend ( or reject) the same to the approving authority which, if satisfied, approves the loan.

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Partners & Associates o Business Associates o BCs & BFs Fair Practice Code Events & News Publications o Overview o Whose Risk is it anyway? o AP Ordinance on MFIs o MFI Regulation NABFINS Gallery Tenders

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NABARD Financial Services Ltd # 190, Rashtriya Vidyalaya Road, Jayanagar 2nd Block, Bangalore-560 004 , Karnataka, INDIA Telephone : 26563443 / 26574222
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Fax: :+91 80 26563442

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Eagle Star Insurance

From Wikipedia, the free encyclopedia Jump to: navigation, search Eagle Star

Industry Fate Successor Founded Defunct

Insurance Acquired Zurich Financial Services 1904 1984 Cheltenham, Gloucestershire, England, United Kingdom Sir Denis Mountain, (Chairman)

Headquarters

Key people

The Eagle Star Insurance Company plc (formerly Eagle Star Insurance Company Limited) was a leading British insurance business. It underwrote the full range of risks, including fire, accident, marine, motor, life, contingency and Pluvius (weather) insurance. It was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index.

[edit] History
The Company was founded by Edward Mountain in 1904 as the British Dominions Marine Insurance Company, which operated as a marine insurance office in the five principal overseas Dominions.[1] It started writing fire and accident policies in 1911 and life assurance policies in 1916.[1] It expanded rapidly in its early years acquiring the Eagle (founded by Sir William Rawlins in 1807) in 1916 and both the Sceptre (founded in 1864) and the Star (founded in 1843) in 1917.[1] It was renamed the Eagle Star & British Dominions in 1917 and Eagle Star in 1937.[1] (The story surrounding the final renaming is that Sir Edward Mountain's son Brian was in the USA promoting company business. Having given the name of his firm to an

American businessman, the American is said to have replied, "Are you trying to sing a song, or sell insurance?" The company's name was swiftly changed!) For many years its Head Office was at the rather prestigious address of 1 Threadneedle Street, London EC2. However, a new administrative head office and computer centre was opened in Cheltenham in October 1968.[1] In 1981 it fought off a takeover bid from Allianz, the German insurance Group.[2] It was acquired by BAT Industries for 968m in 1984.[1] It is now one of the insurance brands owned by Zurich Financial Services although its active use has now been discontinued.[3]

[edit]