This is the scheme prepared at village level, of an objective to help the farming community.

1. Presented by
Nishanth S
BSA-12-244

2. Introduction
Lead Bank Scheme (LBS) was introduced in 1969, based on the
recommendations of the Gadgil Study Group.
National Credit Council (NCC) in Lead Bank Scheme:
The National Credit Council was set up in December 1967.
To determine the priorities of bank credit among various sectors of the economy.
 The NCC had appointed a study group in October 1968 under the chairmanship
of Prof. D. R. Gadgil – to suggest an appropriate organisational framework for
effective implementation of social objectives.
 Report was submitted in October 1969.

3. Gadgil Study Group – outcome & recommendation
Outcome of the Study Group: as on June 1967
 Nationalized banks provide 83% of total credit.
 Banking facilities not available to 617 of 2700 towns.
 Commercial Banks had penetrated only 5000 villages (negligible @ 1%)
 Besides, the credit needs of Agriculture, SSI and allied activities – neglected.
Recommendation:
1) Banks should provide integrated banking facilities in unbanked areas.
2) Adoption of ‘Area Approach’- in unbanked areas – each bank should adopt an
area.
3) Help agriculture and SSI.
4) ‘District’ identified as the smallest geographical unit for the scheme.

4. Objectives of Lead Bank Scheme
 Sri. F. K. F. Nariman Committee appointed by RBI – In the same year.
 Same recommendations were given.
 Nationalized Banks should act as a ‘Lead Bank’.
 336 Districts to be distributed between nationalized banks.
Objectives of Lead Bank Scheme:
1) Eradication of unemployment and under employment.
2) Appreciable rise in the standard of living for the poorest of the poor.
3) Provision of some of the basic needs of the people who belong to poor sections
of the society.

5. LB – as a Consortium Leader
Lead Bank – Consortium Leader:
Each district had been assigned to different banks (public & private).
--- co-ordinating the efforts of all credit institutions
a. for expansion of branch banking facilities
b. for meeting the credit needs of the rural economy
Allotment of Districts:
 All the districts in the country.
 Except – metropolitan cities of Mumbai, Kolkata, Chennai and Union Territories
of Chandigarh, Delhi and Goa.
 Later on, Union Territories of Goa, Daman and Diu, Delhi & Chandigarh – also
brought into purview of LBS.

6. LBS
Banks were allotted Districts in the basis of:
1. The capacity of the Bank – popularity of the bank in the area.
2. Geographical continuity of the Districts forming clusters.
3. If possible each Bank to operate in more than 1 State.
4. If possible to have more than 1 Bank in one State.
 Lead Banks were to first undertake an impression survey of whole District.
 Then a detailed survey regarding saving potential, credit requirement, credit
gaps or surplus.
District Consultative Committee (DCC’s):
 Constituted in the lead districts during 1971-73.
 To facilitate co-ordination of activities of all the Banks and the Financial
Institutions & Govt. departments.

7. Functions
1) Survey resources and development of banking in the area.
2) Survey the dependency on money lenders by industrial units, farms etc.,
3) Survey the facilities for storing (fertilizers & agricultural inputs), marketing,
credit facilities for marketing.
4) Offering training to staff for advice to small borrowers & farmers in priority
sectors.
5) Assist other agencies and involve co-operative banks, RRB’s, SFC’s, KVIB,
NABARD.

8. Advantages
1. Spread the availability of banking facilities all over the country.
2. Inter link the Commercial and Cooperative banks.
3. More effective Branch Expansion.
4. Better relationship between Govt. and Banks.
5. Integration of credit activities of banks.
6. Bottlenecks in the development of a District can be located and removed.
7. Lead Bank Scheme would assist in implementation of the District Plan.

9. District Credit Plan (DCP’s)
 First implemented in 1974.
 DCP – consists of technically & economically viable schemes which can be
taken up for financing.
 It is a plan of bankable schemes in agriculture, industry and service sectors of
the District.
 The schemes can be taken up by different financial institutions in the District.
 Implement the programme in collaboration with other institutions.
 Monitor progress & evaluate progress in achieving targets.

10. Progress of Lead Bank Scheme
1. By 1974 - 90% of geographical areas in Assam, Bihar, W. Bengal, Orissa, M.P.,
U.P covered.
2. 2 study groups appointed by RBI in Gujarat & Maharastra concluded:
a) Lead Banks were successful in identifying potential area for new branches.
b) Formulation & implementation of DCP’s was slow.
 They suggested preparation of Annual Action Plans followed by Annual Credit
Plans (ACP’s)
 By mid 90’s the Lead Bank Scheme covered 493 Districts.
 As on June 30, 2014, 25 public sector banks and one private sector bank have
been assigned lead bank responsibility in 671 districts of the country.

11. Problems – Lead Bank Scheme
 Confusion regarding the concept of Lead Bank especially for opening branches –
ambiguous scope & objectives.
 Co-ordination & effective functioning between banks & F.I’s – not just providing
finance.
 Problems in allotment of Districts.
 Expertise – knowledge on the district, agriculture, projects, etc.,
 Problems in preparation and uniformity of DCP’s.
 Other Infrastructure.
 Did not consider the role of co-operatives – important source of institutional
finance.

12. Service Area Approach (SAA)
 1980’s shortcomings of LBS identified.
 SAA introduced in April 1989.
 Every branch and RRB allotted 15 to 25 districts = Service Area.
 Survey of villages, then village-wise credit plans prepared.
 Credit plan to be monitored by Lead Bank.
Advantages:
1. Branch can be concentrate on development of a village.
2. Duplication can be avoided.
3. Lending can be organized and planned.
4. End – use better controlled.

13. Committee
State Level
Bankers’
Committee
District
Consultative
Committee,
Review
Committee.
Standing
Committee
Block
Level
Bankers’
Committee
STATE LEVEL
DISTRICT LEVEL
BLOCK LEVEL
Today banks have to open 25% of their branches in a year, in unbanked rural area

14. Usha Thorat Committee
 The GOI – constituted a High Power Committee headed by Mrs. Usha Thorat,
Deputy Governor of RBI.
 To suggest reforms in the Lead Bank Scheme.
 Sharper focus on facilitating financial inclusion rather than a mere review of the
govt. sponsored credit schemes.
(Reason: most forums to monitor the implementation of LBS are being used for
routine review of the govt. sponsored schemes, credit deposit ratio, recovery
performance among others.Lending under such schemes constitute 0.4% of the
total priority sector lending.)

15. Usha Thorat Committee
Recommendations:
 LBS should be continued to accelerate financial inclusion in the unbanked areas
of the country.
 Private sector banks should be given a greater role in LBS action plans,
particularly in areas of their presence.
 Enhance the business correspondent model, making banking services available
in all villages having a population of above 2,000 and relaxation in KYC (know
your customer) norms for small value accounts.
“ The review on LBS has been made with a focus on financial inclusion
and in view of the recent developments in the banking sector. The scheme has
been found useful to promote financial inclusion in the country. Hence it
should be continued”
Usha Thorat May 22, 2009

16. Details of Lead Banks in Tamil nadu
Quarter ended December 2012
SR District Name
District
code(BS
R)
Name of Lead Bank Name of LDM Contact Details
Tel MOBILE e-mail Address
1 ARIYALUR 943
STATE BANK OF
INDIA
D MURALI
KRISHNAN
04329-222163
220002
94458
60547
agmlboariyalur@sbi.co.in
TRICHY MAIN
ROAD,Ariyalur-621 704
2 CHENNAI
INDIAN
OVERSEAS BANK
AMBITI ARUNA
KUMAR
044-25323252
94441
16801
lbochennai@iobnet.co.in,
lbochennai@gamil.com
15, HUMTERS ROAD,
DOVETON, CHENNAI - 600
112
3 COIMBATORE 920 CANARA BANK
K
KRISHNAMOORT
HI
0422-2542359
94432
90526
lbocoimbatore@canarabank.co
m
NO.27, JAWANS
BAWAHAN, OPP TO
COURT BUILDING,
COIMBATORE 641018
4 CUDDALORE- 906 INDIAN BANK
DR.
P.SETHURAMAN
04142-222832,
231640
94421
39221
ibrocud@indianbank.co.in
NO. 4 BHARATHY ROAD,
Cuddalore 607001
5 DHARMAPURI 916 INDIAN BANK Mr. MUTHARASU
04342-264633,
260082
94431
48633
ldmdharmapuri@yahoo.co.in
DDDC BUILDING,
PENNAGARAM ROAD,
Dharmapuram-636 702
6 DINDIGUL 939 CANARA BANK JOHN NELSON 0451-2426760
94890
45842
lbodindigul@canarabank.com
SALAI ROAD, Dindigul 624
001
7 ERODE 924 CANARA BANK M SELVARAJU
0424-2240293,
2261833
94890
43556
lboerode@canarabank.com
76 PARK ROAD, Erode 638
003
8 KANCHEEPUR 903 INDIAN BANK
DOMNIC
MARIAKUMAR
27222156, 3013,
7117
94449
87070
ldmkancheepuram@indianbank.
co.in
510/511 GANDHI ROAD,
Kancheepuram 631 501

17. 9
KANYAKUM
ARI
936
INDIAN
OVERSEAS BANK
N DEVANATH 04652-233461
94862
76642
leadbank@nagesco.iobnet.co.i
n
64/B FIRST FLOOR,
CHRISTU NAGAR MAIN
ROAD , NAGERCOIL -
629001
10 KARUR 912
INDIAN
OVERSEAS BANK
S.M.MURUGESA
N
04324-234815
94426
13165
dinlbd@erosco.iobnet.co.in
12J, EIGHTY FEET ROAD,
Karur 639 002
11 KRISHNAGIRI 950 INDIAN BANK T RUDRAPPA
04343 - 236074 -
237390
94422
90901
iblbo.kgiri635@yahoo.co.in
410, FIRST FLOOR,
GANDHI ROAD,
Krishnagiri 635 001
12 MADURAI 930 CANARA BANK C MANOKARAN 0452-2330335
94421
89880
lbomadurai@canarabank.com
118, WEST PERUMAL
MAISTRY ST., Madurai
625 001
13
NAGAPATTIN
AM
909
INDIAN
OVERSEAS BANK
A.KADIRVELU 04365-240170
94866
01188
2005lbd@nagasco.iobnet.co.in
584, PUBLIC OFFICE
ROAD, VELIPPALAYAM,
Nagapattinam 611 001
14 NAMAKKAL 915 INDIAN BANK R ARIVALAGAN 04286-221866
94439
41389
ldmnamakkal@indianbank.co.i
n
31, RENGAR SANNATHI
ST., Namakkal 637 001
15 NILGIRIS 918 CANARA BANK K MOHAN 0423-2443633
94890
43558
lboooty@canarabank.com
COMMERCIAL ROAD,
UDHAGAMANDALAM,
Nilgiris 643 001
16
PERAMBALU
R
914
INDIAN
OVERSEAS BANK
S.CHANDRASEK
AR
04328-277898
94422
71994
ldmpblr@gmail.com
229-A/15-2 RENGA
NAGAR, Perambalur 621
212
17 PUDUKOTTAI 938
INDIAN
OVERSEAS BANK
S. RAMASAMY 04322-221777
94426
10725
lbdpudukottai@karsco.iobnet.c
o.in
5476, OLD
THIRUMAYAM ROAD,
NEAR VICTORIA ARCH,
Pudukkottai 622 001
18
RAMANATH
APURAM
932
INDIAN
OVERSEAS BANK
K.S. SURESH
BAPU
04567-220277
94426
32145
leadbank@tutsco.iobnet.co.in
3-A SANNATHI STREET,
Ramanathapuram 623 501
19 SALEM 913 INDIAN BANK
J
RAVICHANDRA
N
0427-
2312499,2319661
94433
66180
ldmsalem@indianbank.co.in
3RD FLOOR, FORT MAIN
ROAD, Salem 636 007
20 SIVAGANGA 922
INDIAN
OVERSEAS BANK
DURAICHAMY 04575-240508
94426
10408
lbdsivagangai@karsco.iobnet.c
o.in
C' BLOCK, NO. 6,
T.S.NO.4/2-B, THONDI
ROAD, Sivanganga 630 561

18. 21 THANJAVUR 908
INDIAN
OVERSEAS BANK
N
GAJENDRANAT
HAN
04362-238798
94422
71993
leadbank@tansco.iobnet.co.in
85 B MARKET ROAD
EXTENSION
THANJAVUR , 6130001
22 THENI 942 CANARA BANK
G
BALAKRISHNA
N
04546-255378
97909
63474
lbotheni@canarabank.com
365-A MADURAI ROAD,
Theni 625 531
23
THIRUVANN
AMALAI
919 INDIAN BANK C.SEKHAR 04175-222647
94425
04971
lbdtvm@gmail.com
47, SANNATHI STREET
(UPSTAIRS),
Thiruvannamalai 606 601
24
TIRUCHIRAP
ALLI
911
INDIAN
OVERSEAS BANK
S
PRABHAKARAN
0431-2465577
94437
07854
roplan@tri1sco.iobnet.co.in
215, MADURAI ROAD,
Tiruchirapalli 620 001
25
TIRUNELVEL
I
934
INDIAN
OVERSEAS BANK
S.ALAGARSAMY 0462-2332411
94426
20472
lbtirun@tirsco.iobnet.co.in
131, EAST CAR STREET,
II FLOOR, Tirunelveli 627
006
26 TIRUPPUR 305 CANARA BANK V GANESAN
0421-2210957,
2212870
94890
43557
lbotiruppur@canarabank.com
CANARA BANK MAIN
BRANCH, PALADAM
ROAD, Tiruppur 641 604
27 TIRUVALLUR 902 INDIAN BANK T.R. SURESH 27663382
94449
87069
ldmtiruvallur@gmail.com
2, PANAGAL STREET,
Thiruvallur 602 001
28 TIRUVARUR 907
INDIAN
OVERSEAS BANK
R.SAMARAJ 04366-221269
94425
70007
lbtiruvarur@nagasco.iobnet.co
.in
33/C-1, THANJAVUR
ROAD, Tiruvarur 610 001
29 TUTICORIN 933
STATE BANK OF
INDIA
K ELAMARAN
0461-2324066
/4200066
94432
48166
sbi.09900@sbi.co.in
SME BRANCH , FIRST
FLOOR, 360 BEACH
ROAD, TUTICURIN
628002
30 VELLORE 904 INDIAN BANK T. MAHENDRAN 0416-2223044
94425
04974
leadbankvellore@indianbank.c
o.in
46-51, KATPADI ROAD,
TKM COMPLEX, Vellore
632 001
31
VILLUPURA
M
940 INDIAN BANK A RAJENDRAN
04146-
227380,242291
94430
47742
ldmvillupuram@indianbank.co
.in
VVA TOWER, 793,
NEHRUJI ROAD,
Villupuram 605 602
32
VIRUDHUNA
GAR
926
INDIAN
OVERSEAS BANK
P SULAIMAN 04562-244645
94421
44645
leadbankvnr@gmail.com
74,RAILWAY FEEDER
ROAD, Virudhunagar 626
001

19. References
Websites:
• www.slideshare.com
• http://www.gktoday.in/lead-bank-scheme/
Text Books:
• S. Subba Reddy, P. Raghu Ram, Agricultural Finance and Management, pg. no.
30-31