i nc lu s i ve f i nanc e i nd i a re port 2014
92
NPAs in SHG lending and suggest preventive measures
to keep the NPAs at low level. Of the 500 sample SHGs,
84 per cent were SGSY SHGs. The major reasons for
increasing NPAs were
2
: (i) lack of proper knowledge
about group concept, (ii) absence of proper training
and capacity building for bank linkage, book keeping,
financial discipline, internal lending, (iii) inadequate
handholding support from SHPIs, (iv) weak follow-up
by bank branches, (v) inadequate income generation
from economic activities, (vi) wilful default, etc. The
preventive measures suggested included: proper selection
of group members, improving effectiveness of SHPIs,
supportive policy environment, involvement of BCs and
BFs and e-book keeping for better transparency in SHG
accounting.
Thus a variety of local and other factors appear to be
contributory to NPAs under SBLP. As also evidenced
by the aforementioned study, reasons provided for the
increase of NPAs include the lax monitoring of loans by
banks on account of staff shortages, the quality of SHGs
and the effect on SHG repayments of loan waivers and
political promises, etc. Indeed, at the present time, with
the bifurcation of the state of Andhra Pradesh, expecta-
tions of loan waivers have brought SHG repayments to a
virtual halt in the reorganized Andhra Pradesh. The effect
is being felt in Telengana state as well.
4.6 NABARD SUPPORT FOR FINANCIAL
INCLUSION THROUGH SHGs
3
NABARD spent a sum of Rs. 513.9 million during
2013–14 from FIF, Women Self Help Group (WSHG)
Development Fund and Rural Promotion Fund (RPF)
for various microfinance-related activities such as forma-
tion and linkage of SHGs through SHPIs, training and
capacity building of stakeholders, livelihood promo-
tion, documentation, awareness and innovations, etc.
4
This was up from Rs. 456.2 million the previous year.
It continued to extend support to NGOs, RRBs, CCBs,
Farmers’ Clubs and Individual Rural Volunteers (IRVs)
for promoting and nurturing SHGs. During 2013–14,
grant assistance of Rs. 363.3 million was sanctioned to
these agencies. The cumulative assistance sanctioned to
various agencies was Rs. 2628.3 million for promoting
746,000 SHGs. Cumulative assistance of Rs. 790.4
million was released for formation of 499,000 SHGs as
on 31 March 2014. The NGOs were the most dominant
SHPI, forming more than 379,000 SHGs.
NABARD’s special initiatives in backward regions
included
support to Rajiv Gandhi Mahila Vikas
Pariyojana (RGMVP), a special initiative of the Rajiv
Gandhi Charitable Trust (RGCT) for promotion and
credit linkage of SHGs and formation of SHG Fed-
erations in select districts of Uttar Pradesh in association
with participating banks. Under this project, as on 31
March 2014, 105,996 SHGs were promoted, of which,
34,417 SHGs were credit linked and 4,142 cluster level
organizations and 115 block level organizations were
also set up.
NABARD is the Lead Programme Agency for
implementation of Women Empowerment and Liveli-
hood Programme in Mid Gangetic Plains, known as
‘Priyadarshini Programme’. With a total outlay of
US$32.73 million, the programme is assisted by Inter-
national Fund for Agriculture Development (IFAD) and
Ministry of Women and Child Development (MWCD),
GoI. It is being implemented in five districts of Uttar
Pradesh (Bahraich, Rae Bareli, Shravasti, Sultanpur and
Amethi) and two districts of Bihar (Madhubani and
Sitamarhi). It envisages holistic empowerment of around
120,000 rural poor women and adolescent girls through
formation and nurturing of around 12,000 SHGs over
a period of eight years. NABARD engaged resource
NGO for the purpose of capacity building of the pro-
gramme staff and field NGOs for implementation of
the programme at the grass root level. A total number of
47 Community Service Centres, each covering about
200–250 SHGs have been set up in the programme
area. The field NGOs have formed a total of 9,129
SHGs as on 31 March 2014, of which 6,861 SHGs have
been savings-linked and 2,580 SHGs credit linked. An
amount of Rs. 39.5 million was released as seed capital
to 3,122 SHGs.
The scheme for promotion of women SHGs in back-
ward/Left Wing Extremism (LWE) affected districts is
being implemented in association with GoI in 150 select
districts spread across 28 states through Anchor NGOs.
These Anchor NGOs work as SHPIs for promotion and
credit linkage of SHGs with banks. They also act as busi-
ness facilitator for tracking and monitoring the SHGs and
are responsible for loan repayments. Under the scheme,
around 149,000 women SHGs were savings linked and
