BoM Signed MoU with NABARD to Improve PSL in Maharashtra

In July 2021, the Bank of Maharashtra (BoM) signed a Memorandum of Understanding (MoU) with ‘National Bank for Agriculture & Rural Development’ (NABARD) to foster the existing developmental initiatives that are linked to Priority Sector Lending (PSL) in Maharashtra.

• The MoU is intended to benefit farmers, farmer producer organisations, joint liability groups, self-help groups, rural artisans, weavers, agri-preneurs, agri start-ups, and Micro, Small and Medium Enterprises (MSMEs) in the State.
• Under the MoU, the BoM will work with NABARD to develop the rural areas in Maharashtra.
• BoM is the convenor bank of the State Level Bankers’ Committee (SLBC) of Maharashtra.

a.SLBC/UTLBC:

i.SLBC/Union Territory Level Banker’s Committee was constituted by the Reserve Bank of India (RBI) in April 1977 under the Lead Bank Scheme. It is an apex inter-institutional forum at the State level to ensure co-ordination between Government and Banks on matters pertaining to banking development.

ii.SLBC/UTLBC will be chaired by the Chairman/ Managing Director(MD)/ Executive Director of the Convenor Bank. Its meetings will be held on a quarterly basis.

iii.It comprises representatives of Small Finance Banks, Wholly Owned Subsidiaries of Foreign Banks, Regional Rural Banks, Payment Banks, State Cooperative Banks, RBI, NABARD, etc.

iv.As on March 31, 2021, the SLBC/UTLBC convenorship of 28 States and 8 UTs has been assigned to 11 public sector banks and 1 private sector bank.

b.Lead Bank Scheme (LBS):

i.It was introduced by the RBI in 1969 under the recommendation of the Nariman Committee to coordinate the activities of banks and other developmental agencies through various fora, to enhance the bank’s finance flow to the priority sector.

ii.List of different fora under LBS:

• Block Level Bankers’ Committee (BLBC) – At Block Level
• District Consultative Committee (DCC) & District Level Review Committee (DLRC) – At District Level
• SLBC/UTLBC – At State Level/UT Level

Recent Related News:

As per the data published by the BoM, it emerged as the top performer among Public Sector Undertaking (PSU) banks in terms of loan and deposit growth in FY21. BoM recorded a 13.45 percent increase in gross advances at Rs 1.07 lakh crore in FY21.

About Bank of Maharashtra (BoM):

Establishment – Incorporated in 1935, Commenced Operations in 1936
Headquarters – Pune, Maharashtra
MD & CEO – A.S Rajeev
Tagline – One Family One Bank