bu i ld i ng an i nc lu s i ve f i nanc i a l s e ctor i n i nd i a
87
states. The number of SHGs receiving loans during the
year 2013–14 was up only marginally in Andhra Pradesh
over 2012–13 but increased significantly in all states
except Tamil Nadu, UP and Kerala with a dramatic in-
crease in West Bengal which was greater than 106 per
cent. All the other states, with the exception of Kerala,
showed a decline in the number of SHGs receiving loans
during 2013–14 as compared to 2012–13. The amount
of loan disbursed (Table 4.6) shows an improvement
in all states with the exception of Uttar Pradesh. Bihar
registered a moderate increase in the amount of loans dis-
bursed in 2013–14 over the previous year, while Madhya
Pradesh witnessed a stagnation.
4.2.1 Credit-Savings Ratio
The percentage of SHGs that are credit-linked (i.e.,
having an outstanding balance of bank loans) to those that
have savings accounts provides an estimate of the SHGs
that have gone on to access and maintain a borrowing
relationship with the banks. Even though a period of
savings is necessary before SHGs become eligible for
credit, and not all SHGs may be actively seeking loans,
some analysts have tried to use this ratio to highlight the
wide gap between SHGs with savings accounts and those
receiving credit. The ratio of credit-linked SHGs declined
from 62 per cent on 31 March 2013 to 56.5 per cent on
31 March 2014.
The credit to savings ratio, in terms of average loan
outstanding per SHG as a ratio of the average savings per
SHG, for various states as on 31 March 2014 is given in
Appendix 4.4. While the figures for some of the smaller
states are rather high, most of the major states have a ratio
of 7 to 8 which is roughly in line with the norms adopted
by most banks in lending to SHGs. Of course, SHGs
savings for determining credit linkage also include, apart
from bank accounts, their internal savings not placed
with the banks.
4.3 PROGRESS OF SBLP IN
PRIORITY STATES
In the mid-2000s, NABARD had identified 13
1
states
with a large number of the poor, but SBLP performance
lower than the potential. These states have been assigned
priority for up-scaling SBLP in partnership with NGOs
as part of the attempt to extend financial services to
areas of these states with undeveloped banking services.
District-level mapping was carried out to identify the
districts where the number of SHGs was low as is shown
in Table 4.8.
4.3.1 Outreach and SHG savings
The different states present a varied picture both in
terms of the number of SHGs and the level of outreach
achieved. Odisha was a clear leader in the number of
SHGs which was nearly three times the identified poten-
tial. Other states too achieved a high degree of coverage.
The states lagging behind with less than 50 per cent of
Table 4.7
Amount of Bank Loan Outstanding and Disbursement by Major States (in Rs. billion)
State
Loan outstanding
Loan disbursement
2013
2014
2013
2014
Andhra Pradesh
174.8
211.4
111.6
133.2
Tamil Nadu
50.4
49.2
29.2
31.9
Karnataka
32.9
39.2
23.0
29.6
Uttar Pradesh
19.6
19.3
4.5
3.4
Kerala
16.8
17.1
9.0
10.7
Odisha
18.0
15.4
4.7
5.0
West Bengal
24.2
21.8
5.1
6.9
Maharashtra
12.3
13.2
5.8
7.2
Bihar
9.3
9.0
2.2
2.8
Madhya Pradesh
4.4
4.5
1.4
1.4
Source
: NABARD (2013 and 2014).
