Planning plays an important role in the implementation of the Lead Bank Scheme and a bottom-up approach is adopted to map the existing potential for development. Under LBS, planning starts with identifying block wise/activity wise potential estimated for various sectors.

1. Potential Linked Credit Plans (PLPs) are a step towards decentralized credit planning with the basic objective of mapping the existing potential for development through bank credit. PLPs take into account the long term physical potential, availability of infrastructure support, marketing facilities, and policies/programmes of Government etc.


2. A pre-PLP meeting is convened by LDM during June every year to be attended by the banks, Government agencies, etc., to reflect their views and concerns regarding credit potential (sector/activity-wise) and deliberate on major financial and socio- economic developments in the district in the last one year and priorities to be set out for inclusion in the PLP.   DDM of NABARD will make a presentation in this meeting outlining  the  major  requirements  of  information  for  preparing  the  PLP  for  the following year. The preparation of PLP for the next year is to be completed by August every year to enable the State Government to factor in the PLP projections.


3. The procedure for preparing the District Credit Plan is as follows:


1. Controlling Offices of commercial banks and Head Office of RRB and DCCB/LDB will circulate the accepted block-wise/activity-wise potential to all their branches for preparing the Branch Credit Plans (BCP) by their respective branch managers.  Banks should ensure that the exercise of preparation of branch/block plans is completed in time by all branches so that the Credit Plans become operational on time.


2. A special Block Level Bankers' Committee (BLBC) meeting will be convened for each block where the Branch Credit Plans will be discussed and aggregated to form the Block Credit Plan.  DDM and LDM will guide the BLBC
     in finalizing the plan ensuring that the Block Credit Plan is in tune with the potentials   identified   activity-wise   including   in   respect   of   Government sponsored programmes.


3. All the Block Credit Plans of the district will be aggregated by LDM to form the District Credit Plan. This plan indicates an analytical assessment of the credit need of the district to be deployed by all the financial institutions operating in the district and total quantum of funds to be earmarked as credit by all the financial institutions for a new financial year. The Zonal/Controlling Offices of banks, while finalizing their business plans for the year, should take into account the commitments made in the DCP which should be ready well in time before the performance budgets are finalized.


4. The District Credit Plan will be placed before the DCC by the Lead District Manager for final acceptance/approval.   All the District Credit Plans would eventually be aggregated into State Level Credit Plan to be prepared by SLBC convenor bank and launched by 1st of April every year.

The performance of the credit plans is reviewed in the various fora  created  under the lead bank scheme  as shown below: