Anda di halaman 1dari 224

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 Yeejle ceW met#ce efJeÊe keÀer efmLeefle --- 2009-10 Yeejle
Yeejle ceW met#ce efJeÊe keÀer efmLeefle --- 2009-10 Yeejle ceW met#ce efJeÊe keÀer efmLeefle Yeejle ceW
Yeejle ceW met#ce efJeÊe keÀer efmLeefle --- 2009-10
Yeejle ceW met#ce efJeÊe keÀer efmLeefle
Yeejle ceW met#ce efJeÊe keÀer efmLeefle
2009-10
2009-10
Status of Micro
Status of Micro
Status of Micro
Status of Micro Finance
Status of Micro
Status of Micro
Finance
Finance
Finance
Finance
Finance inininininin India
India
India –––––– 2009-10
India
India
India
2009-10
2009-10
2009-10
2009-10
2009-10
veeyee[&
NABARD
Commited to Rural Prosperity
Head Office: C-24, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051 - INDIA
Tel.: +91 222653 0084 / Fax: +91 22 2652 8141
www.nabard.org ● e-mail: mcid@nabard.org
1
1
Status of Micro Finance in India 2009-2010 Yeejle ceW met#ce efJeÊe keÀer efmLeefle --- 2009-10 Yeejle
Status of Micro Finance in India 2009-2010 2

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 Preface Preface Preface The Self Help Group (SHG)-Bank Linkage
Preface Preface Preface
Preface
Preface
Preface

The Self Help Group (SHG)-Bank Linkage Programme, in the past eighteen years, has become a well known tool for bankers, developmental agencies and even for corporate houses. SHGs, in many ways, have gone beyond the means of delivering the financial services as a channel and turned out to be focal point for purveying various services to the poor. The programme, over a period, has become the common vehicle in the development process, converging important development programmes. With the small beginning as Pilot Programme launched by NABARD by linking 255 SHGs with banks in 1992, the programme has reached to linking of 69.5 lakh saving-linked SHGs and 48.5 lakh credit-linked SHGs and thus about 9.7 crore households are covered under the programme, envisaging synthesis of formal financial system and informal sector.

In view of the large outreach and pre-dominant position of the microFinance programme, it is important to keep a continuous track of the status, progress, trends, qualitative and quantitative performance comprehensively. To achieve this objective, Reserve Bank of India and NABARD issued guidelines in the year 2006-07 to Commercial Banks, Regional Rural Banks and Cooperative Banks to furnish data on progress under microFinance. The data so collected covers various parameters like savings of SHGs with banks, bank loan disbursed to SHGs, bank loan outstanding against SHGs, gross non performing assets of bank loans to SHGs, recovery performance of loans to SHGs. Further, the banks also furnished the data regarding bank loans provided to Micro Finance Institutions (MFIs). NABARD, has been bringing out the consolidated document annually.

This booklet presents the consolidated data obtained from the banks along with preliminary analysis of the various trends and progress under microfinance sector under the two models viz., SHG – Bank Linkage model and MFI – Bank Linkage model. The data furnished by the banks have been analysed on a region-wise, state-wise, agency-wise, bank-wise and also for SHGs exclusively under Swarnajayanti Gram Swarojgar Yojana and exclusive women SHGs data in the booklet.

The trend in submitting the Management Information System by banks has shown improvement. This year all 27 Public Sector Commercial Banks, 19 private sector Commercial Banks, 81 Regional Rural Banks and 318 Co-operative Banks have submitted the MIS. We thank all the banks for furnishing the data and expected that in the coming years all the remaining banks will co-operate in timely and accurate submission of data to us.

The major support provided by NABARD under Micro Finance Development and Equity Fund relates to promotion and nurturing of SHGs by Self Help Promoting Institutions and training and capacity building of the stakeholders in the Sector. NABARD is also experimenting innovative projects for further developing the microFinance through Joint Liability Groups. The details in this regard are also included in this booklet.

We hope that all the stakeholders under microfinance sector would use the information as input and feedback relating to the sector for bringing about policy changes and improvement in operational strategies. More analysis than what is given in the book is expected from all the microfinance players. NABARD would welcome suggestions and comments on this booklet for making it more informative and useful at all levels in microfinance sector.

Status of Micro Finance in India 2009-2010 4

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 Contents Contents Contents PARtiCulARs Page No. Highlights – SHG
Contents Contents Contents
Contents
Contents
Contents
 

PARtiCulARs

Page No.

 

Highlights – SHG Bank Linkage Programme 2009-10

i-ii

 

Micro Finance in India

iii-xxii

statement No.

statements

 

I

- A

Savings of SHGs with Banks – Agency-wise position as on 31 March 2010

1

I

- B

Bank loans disbursed to SHGs – Agency-wise loans disbursed during 2009-10

1

I

- C

Bank loans outstanding against SHGs – Agency-wise position as on 31 March 2010

1

I

- D

Non Performing Assets of Banks against SHGs – Agency-wise position as on 31 March 2010

2

I

- E

Agency wise Bank Loans provided to MFIs during 2009-10 and loans outstanding as on 31 March 2010

2

II

- A

Savings of SHGs with Banks – Region-wise / State-wise / Agency-wise position as on 31 March 2010

3

II

- B

Bank Loans disbursed during the year – Region-wise / State-wise / Agency-wise Loans disbursed during 2009 - 2010

4

II

- C

Bank Loans Outstanding against SHGs – Region-wise / State-wise / Agency-wise Loans Oustanding as on 31 March 2010

5

II

- D

Non Performing Assets (NPAs) against Bank loans to SHGs – Region-wise / State-wise / Agency-wise position of NPAs as on 31 March 2010

6

III

- A (i)

Savings of SHGs with Public Sector Commercial Banks as on 31 March 2010

7

III

- A (ii)

Savings of SHGs with Private Sector Commercial Banks as on 31 March 2010

20

III

- B

Savings of SHGs with Regional Rural Banks as on 31 March 2010

23

III

- C

Savings of SHGs with Co-operative Banks as on 31 March 2010

27

IV - A (i)

Bank loans disbursed by Public Sector Commercial Banks to SHGs during 2009-10

36

IV - A (ii)

Bank loans disbursed by Private Sector Commercial Banks to SHGs during 2009-10

49

IV - B

Bank loans disbursed by Regional Rural Banks to SHGs during 2009-10

51

IV - C

Bank loans disbursed by Co-operative Banks to SHGs during 2009-10

55

V

- A (i)

Bank Loans outstanding against SHGs as on 31 March 2010 – Public Sector Commercial Banks

63

V

- A (ii)

Bank Loans outstanding against SHGs as on 31 March 2010 – Private Sector Commercial Banks

76

V

- B

Bank Loans outstanding against SHGs as on 31 March 2010 – Regional Rural Banks

79

VI

- A (i)

NPAs against Bank loans to SHGs and Recovery Performance of Public Sector Commercial Banks as on 31 March 2010

90

VI

- A (ii)

NPAs against Bank loans to SHGs and Recovery Performance of Private Sector Commercial Banks as on 31 March 2010

102

VI

- B

NPAs against Bank loans to SHGs and Recovery Performance of Regional Rural Banks as on 31 March 2010

104

VI

- C

NPAs against Bank loans to SHGs and Recovery Performance of Co-operative Banks as on 31 March 2010

108

VII

Bank Loans provided to MFIs and their Non Performing Assets (NPAs) and Recovery Performance – 2009-10

117

VIII

NABARD Support for Training and Capacity Buliding under Microfinance Sector – 2009-10

118

IX - A

Support to NGOs functioning as SHPIs

120

IX - B

Support to RRBs functioning as SHPI

169

IX - C

Support to Co-operative Banks Functioning as SHPI

175

IX - D

Support to IRVs for Promoting SHGs

179

IX - E

Support to Farmers Clubs Functioning as SHPI

182

X

- A

Agencies having outstanding Revolving Fund Assistance as on 31 March 2010

183

X

- B

Agencies having outstanding Capital Support as on 31 March 2010

184

X

- C

MFIs assisted with grant support for rating during the year 2009-2010

185

XI

- A

Special focus on the Resource Poor Regions – Savings Linked SHGs in the 13 Priority States

186

XI

- B

Special focus on the Resource Poor Regions – Loans Disbursed to SHGs in the 13 Priority States

187

XI

- C

Special focus on the Resource Poor Regions – Loans Outstanding against SHGs in the 13 Priority States

188

Status of Micro Finance in India 2009-2010 6

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 SHG SHG SHG SHG –––––– Bank Linkage Programme 2009-10
SHG SHG SHG SHG –––––– Bank Linkage Programme 2009-10 SHG SHG Bank Linkage Programme 2009-10 Bank
SHG
SHG
SHG
SHG –––––– Bank Linkage Programme 2009-10
SHG
SHG
Bank Linkage Programme 2009-10
Bank Linkage Programme 2009-10
Bank Linkage Programme 2009-10
Bank Linkage Programme 2009-10
Bank Linkage Programme 2009-10

Highlights

Physical

Þ

Total number of SHGs savings linked with banks

:

69.53 lakh

Þ

Out of total [of which] exclusive Women SHGs

:

53.10 lakh

Þ

Out of total [of which] -SGSY SHGs

:

16.94 lakh

Þ

Total number of SHGs credit linked during 2009-10

:

15.87 lakh

Þ

Out of total [of which] exclusive Women SHGs credit linked

:

12.94 lakh

Þ

Out of total [of which]-SGSY SHGs credit linked

:

2.67 lakh

Þ

Total number of SHGs having loans outstanding as on

31 March 2010

:

48.51 lakh

Þ

Of which exclusive Women SHGs

:

38.98 lakh

Þ

Of which-SGSY SHGs

:

12.45 lakh

Þ

Estimated number of of families covered upto 31 March 2010

:

97 million

Financial

Þ

Total savings amount of SHGs with banks as on 31 March 2010

:

` 6198.71 crore

Þ

Out of total savings of exclusive Women SHGs

:

` 4498.66 crore

Þ

Out of total savings of SGSY SHGs

:

` 1292.62 crore

Þ

Total amount of loans disbursed to SHGs during 2009-10

:

` 14453.30 crore

Þ

Out of total loans disbursed to Women SHGs

:

` 12429.37 crore

Þ

Out of total loans disbursed to SGSY SHGs

:

` 2198.00 crore

Þ

Total amount of loans outstanding against SHGs

as on 31 March 2010

:

` 28038.28 crore

Þ

Out of total loans o/s against Women SHGs

:

` 23030.36 crore

Þ

Out of total loans o/s against SGSY SHGs

:

` 6251.08 crore

Þ

Average loan amount outstanding per SHG as on March 2010

:

` 57795

Þ

Average loan amount outstanding per member

as on 31 March 2010

:

` 4128

i
i
Status of Micro Finance in India 2009-2010 SHG SHG SHG SHG –––––– Bank Linkage Programme 2009-10
Status of Micro Finance in India 2009-2010 Participating banks total number of banks submitted Mis Þ

Status of Micro Finance in India 2009-2010

Participating banks

total number of banks submitted Mis

Þ

Commercial banks [public]

:

27

Þ

Foreign banks + Private banks

:

19

Þ

Regional Rural Banks

:

81

Þ

Cooperative Banks

:

318

Þ

Small Industries Development Bank of India

:

1

support from NABARD

 

Capacity building of partner institutions

Þ

Number of programmes conducted during 2009-10

:

6804

Þ

Number of participants covered during 2009-10

:

2.54 lakh

Þ

Cumulative number of participants Trained upto March 2010

:

24.55 lakh

Þ

Grant support during the year 2009-10

:

` 9.93 crore

Þ

Cumulative fund support upto March 2010

:

` 45.02 crore

Refinance support

 

Þ

Refinance to banks during 2009-10

:

` 3173.56 crore

Þ

Cumulative refinance released upto 31.3.2010

:

` 12861.65 crore

Revolving Fund Assistance [RFA] to MFis

 

Þ

RFA released to MFIs during the year

:

` 22.55 crore

Þ

Cumulative RFA released to MFIs upto 31 March 2010 Capital Support [CS] to MFIs

:

` 55.49 crore

Þ

CS released to MFIs during the year

:

` 7.87 crore

Þ

Cumulative CS released to MFIs upto 31 March 2010

:

` 24.86 crore

Grant Assistance to sHPis for Promotion of sHGs

 

Þ

Grant assistance sanctioned during 2009-10

:

` 28.78 crore

Þ

Cumulative sanctions upto 31 March 2010

:

` 107.66 crore

Þ

Grant assistance for Rating of MFIs during 2009-10

:

` 15.83 lakh

ii
ii
Status of Micro Finance in India 2009-2010 Participating banks total number of banks submitted Mis Þ
Status of Micro Finance in India 2009-2010 Micro Finance ininin India Micro Finance Micro Finance India
Status of Micro Finance in India 2009-2010
Micro Finance ininin India
Micro Finance
Micro Finance
India
India

1.

introduction

Microfinance sector has traversed a long journey from micro savings to micro credit and then to micro enterprises and now entered the field of micro insurance, micro remittance and micro pension. This gradual and evolutionary growth process has given a great opportunity to the rural poor in India to attain reasonable economic, social and cultural empowerment, leading to better living standard and quality of life for participating households. Financial institutions in the country continued to play a leading role in the microfinance programme for nearly two decades now. They have joined hands proactively with informal delivery channels to give microfinance sector the necessary momentum. During the current year too, microfinance has registered an impressive expansion at the grass root level. This booklet aims to provide a snapshot of the progress in the microfinance sector.

Status of Micro Finance in India 2009-2010 Micro Finance ininin India Micro Finance Micro Finance India

Since 2006-07, NABARD has been compiling and analysing the data on progress made in microfinance sector, based on the returns furnished by Commercial Banks (CBs), Regional Rural Banks (RRBs) and Cooperative Banks operating in the country. The banks operating, presently, in the formal financial system comprises Public Sector CBs (27), Private Sector CBs (22), RRBs (82), State Cooperative Banks (31) and District Central Cooperative Banks (370). Most of the banks participating in the process of microfinance have reported the progress made under the programme.

The data presented in this booklet covers information relating to savings of Self Help Groups (SHGs) with banks as on 31 March 2010, loans disbursed by banks to SHGs during the year 2009-10, loans outstanding of the banking system against the SHGs and the details of Non-Performing Assets (NPAs) and recovery percentage in respect of bank loans provided to SHGs as on 31 March 2010. The data have been compiled region-wise, State- wise and agency-wise. The booklet also provides details relating to SHGs coming under Swarnjayanti Gram Swarojgar Yojna (SGSY) and exclusive women groups. In addition, the information relating to bulk lending provided by Banks and Financial Institutions to Micro Finance Institutions (MFIs) for on lending to groups and individuals have also been provided. Based on these data and information, this booklet attempts an assessment of progress on varied dimensions of the microfinance sector.

NABARD has been instrumental in facilitating

various

activities

under

microfinance

sector,

involving all possible

partners

at

the ground

level

in

the

field.

NABARD has been

encouraging

voluntary

agencies,

bankers,

socially

spirited

individuals,

other

formal

and

informal

entities

and

also

government

functionaries

to

promote

and

nurture

SHGs.

The focus in this direction has been on training

and capacity building of partners, promotional

grant

assistance

to

Self

Help

Promoting

Status of Micro Finance in India 2009-2010 Micro Finance ininin India Micro Finance Micro Finance India
iii
iii
Status of Micro Finance in India 2009-2010 Micro Finance ininin India Micro Finance Micro Finance India
Status of Micro Finance in India 2009-2010 Institutions (SHPIs), Revolving Fund Assistance (RFA) to MFIs, equity/

Status of Micro Finance in India 2009-2010

Institutions (SHPIs), Revolving Fund Assistance (RFA) to MFIs, equity/ capital support to MFIs to supplement their financial resources and provision of 100 per cent refinance against bank loans provided by various banks for microfinance activities. Financial support and promotional efforts of NABARD towards development of the microfinance sector have also been outlined in this booklet.

  • 2. Progress under Microfinance - Highlights

    • 2.1 Different Models of Microfinance In this section, the data for the year 2009-10 alongwith a few preceding years have been presented and reviewed under two models of microfinance involving credit linkage with banks :

(i)

SHG

-

Bank

Linkage

Model

:

This

model involves the SHGs financed directly by the banks viz., CBs (Public Sector and Private Sector), RRBs and Cooperative Banks.

(ii)

MFI

-

Bank

Linkage

Model

:

This

model covers financing of Micro Finance Institutions (MFIs) by banking agencies for on-lending to SHGs and other small borrowers.

Status of Micro Finance in India 2009-2010 Institutions (SHPIs), Revolving Fund Assistance (RFA) to MFIs, equity/

Milch animals purchased by JLGs / Bagavali PACS.

  • 2.2 status of Micro-finance

The overall progress under these two models is depicted in Table -1:

table : 1- Overall Progress under Micro-finance during the last three years

 

(` in crore)

 

2007-08

2008-09

% Growth (2008-09)

2009-10

% Growth (2009-10)

Particulars

No. of

Amount

No. of

Amount

No. of

Amount

No. of

Amount

No. of

Amount

sHGs

sHGs

sHGs

sHGs

sHGs

A.

sHG-Bank linkage Model

 

Savings

Total

5009794

3785.39

6121147

5545.62

22.2

46.5

6953250

6198.71

13.6

11.8

of SHGs

SHGs

with Bank

Out of

1203070

809.51

1505581

1563.38

25.1

93.1

1693910

1292.62

12.5

(17.3)

as on

which

31

March

SGSY

Bank Loans

Total

1227770

8849.26

1609586

12253.51

31.1

38.5

1586822

14453.30

(1.4)

17.9

disbursed

SHGs

to SHGs

Out of

246649

1857.74

264653

2015.22

7.3

8.5

267403

2198.00

1.0

9.1

during

which

the year

SGSY

Bank Loans

Total

3625941

16999.91

4224338

22679.84

16.5

33.4

4851356

28038.28

14.8

23.6

outstanding

SHGs

with SHGs

Out of

916978

4816.87

976887

5861.72

6.5

21.7

1245394

6251.08

27.5

6.6

as on

which

31

March

SGSY

 

B.(1)

MFi-Bank linkage Model

 

(` in crore)

 

2007-08

2008-09

Growth during

2009-10

Growth during

Particulars

2008-09 (%)

2009-10 (%)

No. of

Amount

No. of

Amount

No. of

Amount

No. of

Amount

No. of

Amount

MFis

MFis

MFis

MFis

MFis

Bank Loans disbursed to MFIs during the year

518

1970.15

581

3732.33

12.2%

89.4%

691

8062.74

18.9%

116.0%

Bank Loans outstanding

1109

2748.84

1915

5009.09

72.7%

82.2%

1513

10147.54

(21%)

102.6%

with MFIs as on

31

March

Note : Actual number of MFIs provided with bank loans would be less as several MFIs could have availed loans from more than one bank.

iv
iv
Status of Micro Finance in India 2009-2010 Institutions (SHPIs), Revolving Fund Assistance (RFA) to MFIs, equity/

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 In addition, to the SHG-Bank linkage model and MFI-Bank

In addition, to the SHG-Bank linkage model and MFI-Bank linkage model, Small Industries

Development Bank of India (SIDBI) has also supported MFIs. The details for the year 2009-

10 are presented below: B.(2) MFis supported by siDBi No. of MFis (` in crore) Amount
10
are presented below:
B.(2) MFis supported by siDBi
No. of MFis
(` in crore)
Amount
Loans disbursed to MFIs during 2009-10
Loans outstanding against MFIs as on 31 March 2010
88 2665.75
146 3808.20
2.3
Coverage of Women sHGs
The details of total number of women SHGs saving linked, credit linked and loans
outstanding for the last two years are given in table 2 :
table : 2 – Position of Women sHGs
(` in crore)
Particulars
Year
total sHGs
Exclusive
Women sHGs
% age of women
sHGs to total sHGs
No.
Amt
No.
Amt
No
Amt.
Saving linked SHGs
31.03.2009
6121147
5545.62
4863921
4434.03
79.5
80.0
31.03.2010
6953250
6198.71
5310436
4498.66
76.4
72.6
Loans disbursed
2008-09
1609586
12253.51
1374579
10527.38
85.4
85.9
2009-10
1586822
14453.30
1294476
12429.37
81.6
86.0
Loans Outstanding
31.03.2009
4224338
22679.84
3277355
18583.54
77.6
81.9
31.03.2010
4851356
28038.28
3897797
23030.36
80.3
82.1
It may be seen that of the total number of saving linked and credit linked SHGs, exclusive
women SHGs with banks were 76.4 per cent and 81.6 per cent, respectively. Further, the
percentage of loans outstanding of exclusive women SHGs to loans outstanding of total
SHGs which was 81.9 per cent as on 31 March 2009 has increased to 82.1 per cent as on
31
March 2010.
  • 3. sHG - Bank linkage This section provides disaggregated picture of the progress achieved under SHG Bank linkage programme.

v
v
Status of Micro Finance in India 2009-2010 In addition, to the SHG-Bank linkage model and MFI-Bank
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31

Status of Micro Finance in India 2009-2010

  • 3.1 savings of sHGs with Banks As on 31 March 2010, a total of 69.53 lakh SHGs were having saving bank accounts with the banking sector with outstanding savings of ` 6198.71 crore as against 61.21 lakh SHGs with savings of ` 5545.62 crore as on 31 March 2009, thereby showing a growth rate of 13.6 per cent and 11.8 per cent, respectively. Thus, more than 97 million poor households were associated with banking agencies under SHG-Bank Linkage Programme. As on 31 March 2010, the CBs lead with savings accounts of 40.53 lakh SHGs (58.3%) with savings amount of ` 3673.89 crore (59.3 %) followed by RRBs having savings bank accounts of 18.21 lakh SHGs (26.2% ) with savings amount of ` 1299.37 crore (21.0%) and Cooperative Banks having savings bank accounts of 10.79 lakh SHGs (15.5 %) with savings amount of ` 1225.44 crore (19.8%). The share under SGSY was 16.94 lakh SHGs with savings of ` 1,292.62 crore forming 24.4 per cent of the total SHGs having savings accounts with the banks and 20.8 per cent of their total savings amount. The agency-wise savings of SHGs with banks as on 31 March 2010 are given in Table - 3:

2009 and 31 March

table : 3 – savings of sHGs with Banks – Agency-wise Position

(` in crore)

Agency

Position

total sHGs’ savings with the banks as on

Per sHG

Out of total : sHGs’

as on

31 March 2009 / 2010

savings

savings with banks

(Rupees)

under sGsY

No. of

%

Amount

%

No. of

Amount

sHGs

share

share

sHGs

Commercial Banks

31.03.09

3549509

 
  • 58.0 50.0

2772.99

 

7812

931422

681.60

(Public & Private

31.03.10

4052915

  • 58.3 59.3

3673.89

9065

1088160

831.48

Sector)

% growth

14.2

32.5

16.0

16.8

21.9

Regional Rural Banks

31.03.09

1628588

 
  • 26.6 35.9

1989.75

 

12218

433912

774.55

31.03.10

1820870

  • 26.2 21.0

1299.37

7136

462370

268.50

% growth

11.8

(34.7)

(41.6)

6.5

(65.3)

Cooperative Banks

31.03.09

943050

 
  • 15.4 14.1

782.88

 

8302

140247

107.24

31.03.10

1079465

  • 15.5 19.8

1225.44

11352

143380

192.64

% growth

14.5

56.5

36.7

2.2

79.6

tOtAl

31.03.09

6121147

 
  • 100.0 100.0

5545.62

 

9060

1505581

1,563.39

31.03.10

6953250

  • 100.0 100.0

6198.71

8915

1693910

1292.62

% growth

13.6

11.8

(1.6)

12.5

(17.3)

Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
 
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
 
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
 
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31
vi
vi
Status of Micro Finance in India 2009-2010 3.1 savings of sHGs with Banks As on 31

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 During the year under review, the average savings per

During the year under review, the average savings

per

SHG with

all banks

had

marginally decreased from ` 9,060 as on 31 March 2009 to ` 8,915 as on 31 March

2010. The decrease may be due to proper utilization of saving amount by SHGs for internal lending. It varied from ` 11,352 per SHG with co-operative banks to ` 7,136 per SHG with RRBs.

As on 31 March 2010, the share of women SHGs in the total SHGs with saving bank accounts was 53.10 lakh SHGs forming 76.4 per cent as compared to the previous year’s share of 79.5 per cent. The actual share of women SHGs would be more as all RRBs from Uttar Pradesh, Gujarat and Jammu & Kashmir and all Co-operative Banks from Uttar Pradesh, Gujarat, Jammu & Kashmir, Goa, Assam, Nagaland, Tripura, Mizoram, and Manipur have not reported data for women SHGs. In addition, some of RRBs viz., Marathwada Gramin Bank from Maharashtra, Assam Gramin Vikas Bank, Bihar Kshetriya Gramin Bank, Madhya Bihar Gramin Bank, Nainital Almora Kshetriya Gramin Bank and some of the Central Cooperative Banks have also not reported women SHGs data.

The State-wise and bank-wise position of savings of SHGs with banks as on 31 March 2010 is indicated at Statement III-A (i) (Public sector CBs), III-A (ii) (Private sector CBs), III-B (RRBs) and III-C (Cooperative Banks).

  • 3.2 Bank loans Disbursed to sHGs During 2009-10, banks have financed 15.87 lakh SHGs, including repeat loan to the existing SHGs, with bank loans of ` 14,453.30 crore as against 16.10 SHGs with bank loans of ` 12,253.51 crore during 2008-09, registering a decline of 1.4 per cent of SHGs but a growth of 17.9 per cent in bank loans disbursed. Out of the total loans disbursed during 2009-10, SHGs financed under SGSY accounted for 2.67 lakh (16.9%) with bank loan of ` 2198.00 crore (15.2%) as against 2.65 lakh SHGs (16.4%) with bank loan of ` 2015.22 crore (16.4%) during 2008-09. The agency-wise details of loans disbursed by banks to SHGs during the years 2008- 09 and 2009-10 are given in Table 4.

table 4 : Bank loans disbursed to sHGs – Agency-wise Position

 

(` in crore)

Agency

During the

total loans disbursed by Banks to

Per sHG

Out of total : Bank

year

sHGs during the year

loan

loan disbursed to

disbursed

sHGs under sGsY

No. of

%

Amount

%

(Rupees)

No. of

Amount

sHGs

share

share

sHGs

Commercial Banks

2008-09

1004587

 
  • 62.4 8060.53

 

80237

  • 65.8 1102.38

133117

 

(Public & Private

2009-10

977521

  • 61.6 9780.18

100050

  • 67.7 1215.50

157560

Sector)

% growth

(2.7)

21.3

24.7

18.4

10.3

Regional Rural Banks

2008-09

2009-10

% growth

405569

376797

(7.1)

 

3193.49

3333.20

4.4

  • 25.2 78741

  • 23.7 88461

12.3

  • 26.1 655.27

81662

  • 23.1 682.41

67531

(17.3)

4.1

Cooperative Banks

2008-09

199430

 

999.49

  • 12.4 50117

8.2

 

49874

257.57

2009-10

232504

1339.92

  • 14.7 57629

9.3

42312

300.09

% growth

16.6

34.1

15.0

(15.2)

16.5

tOtAl

2008-09

2009-10

% growth

1609586

1586822

(1.4)

 
  • 100.0 100.0

12253.51

  • 100.0 100.0

14453.30

17.9

 

19.6

  • 76128 2015.22

264653

  • 91083 2198.00

267403

1.0

9.1

It may be observed from Table-4 that as always, CBs led in disbursement of loans to SHGs during 2009-10 with 61.6 per cent share followed by RRBs with a share of 23.7 per cent and Cooperative Banks with a share of 14.7 per cent.

vii
vii
Status of Micro Finance in India 2009-2010 During the year under review, the average savings per
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was

During 2009-10, average bank loan disbursed per SHG was ` 91,083 as against ` 76,128 during 2008-09. The average loan per SHG ranged from of ` 1,00,050 per SHG by CBs to ` 57,629 per SHG by Cooperative Banks.

The State-wise and bank-wise position of disbursement of bank loans to SHGs during the year 2009-10 is indicated at Statement IV-A (i) (Public sector CBs), IV-A (ii) (Private sector CBs), Statement IV-B (RRBs) and Statement IV-C (Cooperative Banks).

  • 3.3 Bank loans Outstanding against sHGs As on 31 March 2010, total number of 48.51 lakh SHGs were having outstanding bank loans of ` 28,038.28 crore as against 42.24 lakh SHGs with bank loans of ` 22,679.85 crore as on 31 March 2009, representing a growth of 14.8 per cent in number of SHGs and 23.6 per cent in bank loans outstanding against SHGs. The share of SHGs under SGSY was 12.45 lakh SHGs (25.7%) with outstanding bank loans of ` 6,251.07 crore (22.3%) as against 9.77 lakh SHGs (23.1%) with outstanding bank loans of ` 5,861.72 crore (25.8%) as on 31 March 2009. The agency-wise position of outstanding bank loans to SHGs for the years 2008-09 and 2009-10 are given in Table 5.

table 5 : Bank loan outstanding against sHGs – Agency-wise Position

(` in crore)

Agency

Position

 

total Bank loan outstanding

Per sHG-

Out of total: Bank loan

as on

against sHGs

bank

outstanding against

 

loan O/s

sHGs under sGsY

No. of

%

Amount

%

(Rupees)

No. of

Amount

sHGs

share

share

sHGs

CBs (Public &

31.03.2009

2831374

67.1

 
  • 16149.43 57,037

 
  • 71.2 3961.53

645145

 

Private Sector)

31.03.2010

3237263

66.7

  • 20164.71 62,289

  • 71.9 4072.03

798304

% growth

  • 14.3 24.9

9.2

23.7

2.7

RRBs

31.03.2009

977834

23.1

5224.42

 
  • 23.0 53,428

258890

1508.10

31.03.2010

1103980

22.8

6144.58

  • 21.9 55,658

368795

1725.94

% growth

  • 14.3 17.6

4.2

42.4

14.4

Cooperative Banks

31.03.2009

 
  • 415130 1306.00

9.8

   
  • 5.8 31,460

72852

392.09

31.03.2010

  • 510113 1728.99

10.5

  • 6.2 33,894

78295

453.11

% growth

  • 22.9 32.4

7.7

7.5

15.6

tOtAl

31.03.2009

31.03.2010

% growth

14.8

  • 4224338 100.0

  • 4851356 100.0

22679.85

28038.28

23.6

  • 100.0 53,689

  • 100.0 57,795

7.6

976887

1245394

27.5

5861.72

6251.07

6.6

viii
viii
Status of Micro Finance in India 2009-2010 During 2009-10, average bank loan disbursed per SHG was

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 It may be observed from Table 5, that following

It may be observed from Table 5, that following the highest disbursements, CBs also had the maximum share of 66.7 per cent in outstanding bank loans to SHGs followed by RRBs with a share of 22.8 per cent and Cooperative Banks with a share of 10.5 per cent.

The average bank loan outstanding per SHG had increased from ` 53,689 as on 31 March 2009 to ` 57,795 as on 31 March 2010. It varied between ` 62,289 per SHG in case of CBs and ` 33,894 per SHG in case of Co-operative Banks as on 31 March 2010.

The State-wise and bank-wise position of outstanding bank loans to SHGs as on 31 March 2010 is given in Statement V-A (i) (Public sector Commercial Banks), V-A (ii) (Private sector Commercial Banks), V-B (RRBs) and V-C (Cooperative Banks).

3.4

Non-Performing Assets of Bank loans to sHGs

 

As on 31 March 2010, total 221 banks had reported data on Non Performing Assets (NPAs). Based on these data, NPAs to total bank loans outstanding against SHGs as on 31 March 2010 stood at 2.94 per cent, amounted to ` 823.04 crore, which showed an increase from 2.90 per cent and ` 625.87 crore during 2008-09.

In case of SHGs under SGSY, NPAs to total bank loans outstanding against SHGs

were five per cent, amounting to `

319.47 crore, as on 31 March 2010. The agency-

wise position of NPAs to total bank loans outstanding against SHGs as on 31 March

2010

is given in Table 6:

 
 

table : 6 – Agency-wise NPAs of Bank loans to sHGs

 
 

(` in crore)

Agency

 

NPAs as on 31 March 2010

 

Outstanding loans

 

Amount of NPAs

% of NPAs to

 

against sHGs

outstanding bank loans

CBs (Public Sector )

   

19724.42

513.53

2.60

CBs (Private Sector)

   

440.29

23.93

5.44

RRBs

 

6144.58

218.53

3.56

Cooperative Banks

   

1728.99

67.04

3.88

tOtAl

 

28038.28

823.04

2.94

 

The State-wise and bank-wise position of NPAs of bank loans to SHGs as on 31 March 2010 are provided in Statement VI-A (i) (Public Sector Commercial Banks), VI-A (ii) (Private Sector Commercial Banks), VI-B (RRBs) and VI-C (Cooperative Banks).

3.5

Recovery Performance of Bank

 

The recovery performance of banks varies from region to region and also as between SHG-Bank linkage programme and SHGs financed under SGSY programme. On the basis of data reported by banks, out of 302 banks which have reported the recovery

data, 203 banks (67.2%) had more than 80% recovery of SHG loans as on 31 March

2010

which remained about the same as on 31 March 2009. Agency-wise distribution

of banks according to recovery per centage of SHGs, is given in Table – 7.

ix
ix
Status of Micro Finance in India 2009-2010 It may be observed from Table 5, that following
Status of Micro Finance in India 2009-2010 table : 7 – Recovery Performance – Agency-wise (All

Status of Micro Finance in India 2009-2010

table : 7 – Recovery Performance – Agency-wise (All sHGs)

Agency

No. of Banks reported recovery data

No. of banks based on percentage distribution of recovery performance of bank loans to sHGs as on 31 March 2010

=/> 95%

80-94%

50-79%

< 50%

Commercial Banks

         

(Public Sector)

24

8

10

6

0

Commercial Banks

         

(Private Sector)

9

6

3

0

0

Regional Rural Banks

70

17

28

21

4

Cooperative Banks

199

72

59

43

25

tOtAl

302

103

100

70

29

Percentage of Banks

 

34.1

33.1

23.2

9.6

As regards recovery percentage of SHG loans by banks under SGSY, out of total 165 banks reported the recovery data of SHGs under SGSY, 86 banks (52.2%) had more than 80% recovery of as on 31 March 2010 as against 58.9% as on 31 March 2009. Agency-wise percentage distribution of banks according to recovery performance is given in Table – 8.

table : 8 – Recovery Performance – Agency-wise (Exclusive sGsY sHGs)

 

Agency

total no. of Banks reported recovery data

No. of banks, based on percentage distribution of recovery performance of bank loans to sHGs as on 31 March 2010

=/> 95%

80-94%

50-79%

< 50%

Commercial Banks

         

(Public Sector)

24

4

10

10

0

Commercial Banks

         

(Private Sector)

8

5

1

2

0

Regional Rural Banks

56

4

19

 
  • 23 10

Cooperative Banks

77

26

17

 
  • 20 14

tOtAl

165

39

47

55

24

Percentage of Banks

 

23.6

28.6

33.3

14.5

The State-wise and bank-wise position of recovery percentage to demand of SHG loans as on 31 March 2010 is indicated at Statement VI-A(i) (Public sector CBs), VI- A(ii) (Private sector CBs), VI-B (RRBs) and VI-C (Cooperative Banks).

  • 4. Micro Credit by Micro Finance institutions

Micro Finance Institutions (MFIs) are playing an important role of financial intermediaries in microfinance sector. The MFIs operate under various legal forms, viz.,

  • NGO MFIs – Registered under Societies Registration Act, 1860 and / or Indian Trust Act, 1880

  • Cooperative MFIs – Registered under State Cooperative Societies Act or Mutually Aided Cooperative Societies Act (MACS) or Multi- State Coop. Societies Act, 2002

  • NBFC MFIs incorporated under Section 25 of Companies Act, 1956 (not for profit)

  • NBFC MFIs incorporated under Companies Act, 1956 & registered with RBI

Following the RBI guidelines issued vide its circular dated 18 February 2000, to all scheduled commercial banks including RRBs, MFIs have been availing bulk loans from banks for on-lending to groups and other small borrowers. On the basis of returns received from banks for the year 2009-10, SIDBI, 21 Public Sector Commercial Banks, 14 private

x
x
Status of Micro Finance in India 2009-2010 table : 7 – Recovery Performance – Agency-wise (All

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 sector Commercial Banks, 04 foreign Commercial Banks, 7 RRBs

sector Commercial Banks, 04 foreign Commercial Banks, 7 RRBs and one Co-operative Bank had reportedly financed MFIs for on-lending to groups and other small borrowers to promote microfinance activities.

Based on the MIS, banks have financed to 691 MFIs with bank loans of ` 8062.74 crore as against 581 MFIs with bank loans of ` 3,732.33 crore during 2008-09, representing growth rate of 116.5 per cent in bank loans disbursed. As on 31 March 2010, the outstanding bank loans to 1513 MFIs was ` 10147.54 crore as against ` 5009.09 crore to 1915 MFIs as on 31 March 2009, showing doubling of bank loan over the previous year.

Further, during the year 2009-10, SIDBI had financed to 88 MFIs with financial assistance of ` 2665.75 crore and the loan outstanding against 146 MFIs as on 31 March 2010 was ` 3808.20 crore. As such the total exposure of banks and financial institutions to MFIs as on 31 March 2010 was to the tune of ` 13955.74 crore.

The progress under MFI-bank Linkage programme, for the year 2008-09 and 2009-10, is given in Table – 9.

table 9 : Bank loan provided to MFis

(` in crore)

Agency

Years

Amount of loan

loan Outstanding

Percentage

disbursed to

against NGOs/ MFis

Recovery of

NGOs/ MFis

as on 31 March

loans range

No. of MFis

Amount

No. of MFis

Amount

CBs (Public, Private and Foreign)

2008-09

522

3,718.93

1,762

4,977.89

70-100

 

2009-10

645

8,038.61

1407

10,095.32

80-100

 

% growth

23.5

116.2

(20.1)

102.8

 

RRBs

2008-09

59

13.40

153

31.20

87-100

 

2009-10

46

24.14

103

52.22

100

 

% growth

(22)

80.1

(32.7)

67.4

 

Coop. Banks

2008-09

0

0.00

0

0.00

NA

 

2009-10

0

0.00

3

0.007

90

 

% growth

NA

NA

NA

NA

NA

total All Banks

2008-09

 
  • 581 1,915

3,732.33

 

5,009.09

 
 

2009-10

 
  • 691 1,513

8062.74

 

10,147.54

 
 

% growth

18.9

116.5

(21.0)

102.6

 

SIDBI

2009-10

88

2665.75

146

3808.20

NA

total of all Banks and siDBi to MFis

2009-10

779

10728.49

1659

13955.74

 

Note: Actual no. of MFIs provided with bank loans would be less as several MFIs had availed loans from more than one bank. NA – Not Applicable/Not available.

Bank-wise details of MFIs financed by banks during the year 2009-10 are furnished in Statement VII.

  • 5. Financial support and Promotional Efforts by NABARD

    • 5.1 NABARD Refinance support to Banks NABARD provides refinance support to banks to the extent of 100 per cent of the bank loans disbursed to SHGs. The total refinance disbursed to banks against banks’ loans to SHGs during 2009-10 was ` 3173.56 crore, registered a growth of 21.1 per cent from ` 2620.03 crore in 2008-09. Further, the cumulative refinance disbursed under SHG bank linkage programme by NABARD to Banks upto 31 March 2010 stood at ` 12861.65 crore.

xi
xi
Status of Micro Finance in India 2009-2010 sector Commercial Banks, 04 foreign Commercial Banks, 7 RRBs
Status of Micro Finance in India 2009-2010 5.2 Promotional support - sHG-Bank linkage (i) Micro Finance

Status of Micro Finance in India 2009-2010

  • 5.2 Promotional support - sHG-Bank linkage

    • (i) Micro Finance Development and Equity Fund To strengthen the efforts of NABARD towards promotional support for micro finance, the Government of India in the Union Budget for 2010-11 had further increased the corpus of Micro Finance Development and Equity Fund (MFDEF) to ` 400 crore. Recognising the need for upscaling the micro-Finance interventions in the country, the Hon’ble Union Finance Minister, while presenting the budget for the year 2000-01, had created Micro Finance Development Fund (mFDF) with an initial contribution of ` 100 crore, to be funded by Reserve Bank of India, NABARD and commercial Banks in the ratio of 40:40:20. In the Union Budget for 2005-06, the Government of India had decided to re-designate the mFDF into mFDEF and raised its corpus from ` 100 crore to ` 200 crore. The mFDEF is managed and administered by NABARD under the guidance of an mFDEF Advisory Board. The objective of mFDEF is to facilitate and support the orderly growth of the microfinance sector through diverse modalities for enlarging the flow of financial services to the poor, particularly for women and vulnerable sections of society consistent with sustainability. The Fund is utilised to support interventions to eligible institutions and stakeholders. The major components of the assistance include promotional grant assistance to Self-Help Promoting Agencies, training and capacity building for microfinance clients and stakeholders of SHG - Bank Linkage Programme, funding support to MFIs, Management Information System (MIS) for microfinance, research, studies and publications.

(ii)

training and Capacity building

NABARD

continued

to

organize

/

sponsor

training

programmes and exposure visits for the benefit of officials of banks, NGOs, SHGs and government agencies to

enhance

their

effectiveness

in

the

field

of

microfinance.

Training

supplements

and

materials

were

supplied

to

banks

and

other

agencies.

Best practices and innovations

of

partner

agencies

were

widely circulated among

government

agencies,

banks

 

` 6.10

crore

during

as

on

31 March

Status of Micro Finance in India 2009-2010 5.2 Promotional support - sHG-Bank linkage (i) Micro Finance

and NGOs. During the year 2009-10, fund support of ` 9.93 crore was

2008-09. The

2010 stood at

` 45.02 crore. During 2009-10, 6,804 training/

provided for capacity building, exposure visits and awareness-building as against

cumulative

fund support for the purpose

capacity building programmes were conducted covering 2,53,868 participants. The progress under training and capacity building during the year 2009-10 is given in Table -10.

xii
xii
Status of Micro Finance in India 2009-2010 5.2 Promotional support - sHG-Bank linkage (i) Micro Finance

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 table : 10 – training and Capacity Building Programmes

table : 10 – training and Capacity Building Programmes – 2009-10

sr.

Programme Particulars / categories

No. of

No. of

No.

Programmes

Participants

conducted

1

Awareness creation and capacity building programmes organised for SHG members in association with identified resource NGOs, covering participants to inculcate skills for managing thrift and credit

1991

83131

2

Awareness-cum-refresher programmes conducted for NGOs, including CEOs

1130

35648

3

Training programmes conducted for bankers covering officials of Commercial banks, RRBs and Co-operative Banks

462

14945

4

Exposure visits for bank officials / NGOs to agencies pioneering in Microfinance (MF) initiatives

14

387

5

Field visits of Block Level Bankers' Committee (BLBC) members to nearby SHGs

227

5880

6

Programmes for the elected members of Panchayati Raj Institutions (PRIs) to create awareness among them about the MF initiatives

80

2799

7

Training & exposure programmes for government officials

79

3385

8

Other training programmes for microfinance sector

 
  • 1181 65029

9

Micro Enterprises Development Programme (MEDP)

 
  • 1530 38313

10

Micro Enterprise Promotional Agency

36

1000

11

Meetings and Seminars (Bankers, NGO officials, etc.)

74

3351

 

total

6804

253868

The Region/State-wise position of support provided by NABARD for training and capacity building during the year 2009-10 is given in Statement VIII.

(iii) Joint liability Groups:

Based on the studies conducted by NABARD, it was found that financing of Joint Liability Groups (JLGs) is a good business proposition. It needs simplified documentation, group dynamics, timely repayment culture and prospects of credit enhancement to quality clients. Keeping in view the need and findings of the studies, NABARD has issued comprehensive guidelines on JLGs to Banks focusing

Status of Micro Finance in India 2009-2010 table : 10 – training and Capacity Building Programmes

JLG of Bagavali PACS with the leafy vegetable.

on small and marginal farmers, oral lessees, tenant farmers engaged in farm sector and other clients under non- farm activities. NABARD supports banks for nurturing and financing of JLGs for the initial three years. Banks may use the services of JLG-promoting agencies. In addition, NABARD would also extend support for training, exposure visits, experience-sharing, etc., for banks’ staff. The details of the scheme are given in Exhibit.

(iv) Micro Enterprise Development Programme for skill Development

The Micro Enterprise Development Programme (MEDP) was launched by NABARD in March 2006 with the basic objective to enhance the capacities of the members of matured SHGs to take up micro enterprises through appropriate skill upgradation / development in the existing or new livelihood activities both in farm and non-farm sectors by way of enriching knowledge of participants on enterprise management, business dynamics and rural markets. It is tailor-made and focused on skill building training programme. The duration of training programme ranged

xiii
xiii
Status of Micro Finance in India 2009-2010 table : 10 – training and Capacity Building Programmes
Status of Micro Finance in India 2009-2010 between 3 and 13 days, depending upon the objective

Status of Micro Finance in India 2009-2010

between 3 and 13 days, depending

upon the objective

and

nature

of

training.

The

training

budget

has

been revised to ` 39,000/- per

programme for imparting training to 30 participants upto 13 days.

Status of Micro Finance in India 2009-2010 between 3 and 13 days, depending upon the objective

In 2009-10, a total of 1530 MEDPs, both under Farm and Non-farm activities, were conducted across the country covering 38313 members of the matured SHGs. Cumulatively, total 2837 MEDPs have been conducted so far covering 93777 participants. The dominant activities in agriculture and allied sector covered under MEDPs were animal husbandry, bee-keeping, mushroom cultivation, vermi- compost/ organic manure, horticulture, floriculture, etc. whereas predominant non-farm activities taken up under MEDPs were readymade garments, Agarbatti- making, embroidery, bamboo-craft, beauty parlours, etc.

  • (v) Grant support to Partner Agencies for Promotion and Nurture of sHGs NABARD continued its efforts in the formation and nurturing of quality SHGs by means of promotional grant support to NGOs, RRBs, DCCBs, Farmers' Clubs and Individual Rural Volunteers (IRVs) and by facilitating capacity building of various partners, which has brought impressive results in the promotion and credit linkage of SHGs. Further, the number of partner institutions/individuals functioning as Self-Help Promoting Institutions (SHPIs) over the years has increased to 2911 which has resulted in the expansion of the programme throughout the country. During the year 2009-10, the financial support provided by NABARD to its partner institutions and their progress in SHGs promotion / linkage are indicated in Table - 11.

table : 11 – Grant support to Partner Agencies - 2009-10

(` in lakh)

 

Grant Assistance Extended to various Partners under sHG-Bank linkage Programme

 

Agency

sanctions during the Year

Cumulative sanctions

Cumulative Progress

No.

Amount

No. of

No.

Amount

No. of

Amount

sHG

sHGs

sHGs

sHGs

released

formed

linked

NGOs

306

2620.10

53393

2624

9025.81

345173

3469.69

244367

157831

RRBs

4

40.14

 
  • 3395 429.44

117

 

47975

189.23

 
  • 54271 36155

Co-operatives

7

63.23

 
  • 5230 626.36

102

 

59105

252.95

 
  • 44618 29075

IRVs (2023)

2

154.70

 
  • 9250 684.46

68

 

40483

 
  • 63.91 5636

9991

 

Farmers’ Clubs

 
  • 61.96 7986

14858

 

total

319

2,878.17

71268

2911

10766.07

492746

4037.74

368105

236683

The SHPI-wise details of the promotional grant provided by NABARD during the year 2009-10 are given in Statement No. IX-A (NGOs- SHPI), IX-B (RRBs- SHPI), IX-C (Coop. Banks- SHPI), IX-D (IRVs- SHPI) and IX-E (Farmers Clubs-SHPI).

(vi) Pilot Project on sHG-Post Office linkage Programme

The Pilot Project for SHG-Post Office Linkage programme was initially launched in five select districts of Tamil Nadu, viz., Sivaganga, Pudukottai, Tiruvannamalai, Thanjavur and Tiruvarur. The initial results have been encouraging. Thus,

xiv
xiv
Status of Micro Finance in India 2009-2010 between 3 and 13 days, depending upon the objective

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 NABARD has sanctioned an additional Revolving Fund Assistance (RFA)

NABARD has sanctioned an additional Revolving Fund Assistance (RFA) of ` 200 lakh to India Post for on-lending to the SHGs, taking the total RFA sanctioned to ` 500 lakh.

As on 31 March 2010, 2,828 SHGs have opened zero interest savings accounts with select Post Offices in Tamil Nadu and 1195 SHGs have been credit linked with loans amounting to ` 321.25 lakh.

NABARD has sanctioned RFA of ` 5 lakh to Post Offices in Meghalaya for on- lending to 50 SHGs in East Khasi Hills.

(vii) support to Activity-Based Groups

NABARD introduced a scheme for supporting small-scale activity based groups (ABGs) in 2008-09, wherein capacity building, production and investment credit and market-related support would be extended. The scheme focuses on forming and nurturing the groups engaged in similar economic activities, such as farmers, handloom weavers, craftsmen, fishermen, etc., to improve efficiency of their production and realise better terms from the market through economies of aggregation and scale. The scheme drew upon NABARD’s existing modes of support and has both grant and loan components. While grant support would cover expenditure on SHGs formation and training, extension services, establishing market linkages, etc., bank loan/s would cover investment activities and working capital needs of the SHGs. Banks would be eligible to draw refinance for the loans provided to Activity- Based Groups on the same terms as applicable for SHG’s financing. In select cases, NABARD may also provide loans directly to registered SHGs or through the agencies promoting SHGs to establish few initial projects where none exists.

Status of Micro Finance in India 2009-2010 NABARD has sanctioned an additional Revolving Fund Assistance (RFA)

(viii)

support to sHGs’ Federations

Recognising the emerging role of the SHGs’ Federations in nurturing of SHGs, enhancing the bargaining powers of group members and livelihood promotion, NABARD introduced during 2007-08, a flexible scheme to support such Federations, irrespective of their model. The broad norms prescribed for supporting SHG Federations stipulate that the federations should be need-based, member-owned/driven, democratically managed with members at liberty to join, become self-managed over three years, etc. NABARD extends grant support to the Federation for training, capacity building, and exposure visits of SHG members, etc., as also under all of NABARD’s existing promotional schemes. So far grant assistance of ` 22.02 lakh has been sanctioned to SHG Federations.

(ix) special initiative for scaling up sHGs/ sHG Federations

NABARD has been associated with Rajiv Gandhi Charitable Trust (RGCT) for promotion, credit linkage and formation of SHG Federations in select districts of Uttar Pradesh. The project envisages promotion and credit linkage of 22,000 SHGs, 1,100 cluster-level associations and 44 block-level associations in collaboration with participating banks and implementing NGOs. The project would

xv
xv
Status of Micro Finance in India 2009-2010 NABARD has sanctioned an additional Revolving Fund Assistance (RFA)
Status of Micro Finance in India 2009-2010 cover 15 and 29 blocks under Phase I and

Status of Micro Finance in India 2009-2010

cover 15 and 29 blocks under Phase I and II respectively in 12 districts of Uttar Pradesh viz. Sultanpur, Rae Bareli, Barabanki, Pratapgarh, Lucknow, Unnao, Fatehpur, Jhansi, Lalitpur, Bahraich, Shravasti and Banda. NABARD and RGCT have designed the project with technical assistance from Society for Elimination of Rural Poverty (SERP), Government of Andhra Pradesh. As at the end of 31 March 2010, 21,868 SHGs have been promoted, of which 12,749 SHGs have been credit linked. In addition, 676 Village Level and 15 Block Level SHG Federations were formed under Phase I and Phase II.

  • (x) state specific support in North Eastern Region

    • (a) Arunachal Pradesh: During 2008-09, an amount of ` 39.15 lakh was sanctioned by NABARD for implementing the project ‘Micro Finance Vision 2011’ by the Govt. of Arunachal Pradesh. Further, an amount of ` 33.66 lakh was sanctioned to the Essom Foundation Trust for setting up a Resource Centre at Itanagar for providing policy, operational inputs, capacity building support and marketing linkages among the groups. NABARD has released ` 5.452 lakh to the trust upto 31 March 2010.

    • (b) Tripura: NABARD continued to provide technical support to the State support project on SHGs being implemented by the Government of Tripura for credit linkage of 11,500 existing SHGs, forming and credit linking 35,000 new SHGs and promoting livelihood activities among the 3 lakh members upto 2012.

  • 5.3 Promotional support - MFi Bank linkage NABARD has taken three major initiatives to support Micro Finance Institutions (MFIs) to strengthen them as detailed in the following paragraphs:

    • (i) Capital support to MFis

      • (a) the scheme: As mentioned earlier, the Micro Finance Development Fund (mFDF) was set up with NABARD by Government of India in 2000-01 with the initial corpus of ` 100 crore to be contributed by Reserve Bank of India (40%), NABARD (40%) and Commercial Banks (20%). The mFDF was redesignated to Micro Finance Development and Equity Fund (mFDEF) in 2005-06 and the corpus was increased to ` 200 crore and same has been further increased to ` 400 crore during 2010-11. Accordingly, NABARD formulated a scheme called “Capital/Equity Support to MFIs” in 2007-08 for providing Capital/equity support to various types of MFIs to enable them to leverage commercial and other funds from banks. This would help MFIs in providing financial services at an affordable cost to the poor. During 2009-10, NABARD introduced a new scheme for "Capital Support to start-up MFIs" having potential to scale-up their activities but lacking in capital, infrastructural facilities and managerial skills. Micro-Finance Organisations (MFOs) and MFI-NBFCs, identified as ‘Start ups’ on the basis of area of operation, client outreach, lending model, borrowing history, etc., are eligible for support under the scheme. Financial support will be in the form of ’subordinated debt’ which shall be sub-ordinate to the claims of all other creditors. The quantum of support will be commensurate with the business plan of the MFO / MFI-NBFC but not exceeding ` 50 lakh in any case. The rate of interest has been fixed at 3.5 per cent to be repaid over a period of 7 years including moratorium of 2 years.

xvi
xvi
Status of Micro Finance in India 2009-2010 cover 15 and 29 blocks under Phase I and

Status of Micro Finance in India 2009-2010

Status of Micro Finance in India 2009-2010 (b) Progress under scheme: During 2009-10, under Capital Support
  • (b) Progress under scheme: During 2009-10, under Capital Support Scheme, 10 proposals amounting to ` 6.87 crore were sanctioned to 10 MFIs and disbursed ` 7.87 crore. The outstanding under Capital support as on 31 March 2010 was ` 24.17 crore against 31 MFIs. The agency-wise outstanding is given in Statement No. X(B).

(ii)

Revolving Fund Assistance to MFis

  • (a) the scheme:

NABARD provides loan funds in the form of Revolving Fund Assistance (RFA), on a selective basis, to MFIs. The RFA provided to these agencies is necessarily to be used for on-lending to SHGs or individuals and the amount is to be repaid along with the service charge between 3.5 per cent and 9.5 per cent within a stipulated period of 5 to 7 years with one to two years of moratorium period. This enables them to build a ‘credit history’, which would help them to access credit facilities through the regular banking channels.

  • (b) Progress under scheme: During 2009-10, RFA of ` 23 crore was sanctioned to 13 MFIs taking cumulative RFA sanction to ` 65.98 crore to 51 agencies. The disbursements made during 2009-10 were at ` 22.55 crore and the cumulative disbursement reached to ` 55.49 crore. As on 31 March 2010, the total RFA outstanding was ` 33.27 crore against 22 MFIs. The details of agencies-wise outstanding RFA are given in Statement - X(A). Besides Capital Support and RFA from MFDEF, refinance assistance of ` 30 crore was also released during 2009-10 of which outstanding as on 31 March 2010 was Rs.28.33 crore.