January 28, 2005

The Chairman/Managing Director/Chief Executive Officer,
(All Indian Private Sector Banks)

Dear Sir,

Please refer to our Circular letter No.RPCD. Plan. 1194/2002-03 dated 12 March 2003 on the captioned subject (copy enclosed), through which private sector banks were requested to take active participation in various fora under Lead Bank Scheme and Government sponsored schemes and cooperate with the Lead Bank concerned in the district and take appropriate steps to improve the flow of credit to the priority sector/weaker sections, so that comprehensive credit planning and monitoring can be done at various levels.

2. In this connection, it has been brought to our notice by some of our Regional Offices that the representatives of some of the Private Sector Banks are not participating in the meetings held in various fora under Lead Bank Scheme and are also not actively participating in various Government sponsored schemes, which hampers in achieving the targets set for priority sector/weaker sections of the society.

3. You are, therefore, requested to ensure that your bank actively participates in these fora and cooperates with Lead Banks and other agencies, in the States/Union Territories where your bank is functioning through the network of branches and ensure to increase the flow of credit to agriculture/priority sector and weaker sections of the society.

Yours faithfully,

(A.K. Bhandari)

Deputy General Manager