88
(Table 4.18). Second, small borrowal accounts have a regional dimension. The
decline in small borrowal accounts (
`
25,000 and below) has occurred between
March 1996 and March 2001 only in three underdeveloped regions of north-
east, east and central with the exception of Maharashtra which accounts for
the largest share as per the latest 2008 study (RBI 2011). After 2001, the state-
wise data on small borrowal accounts are available for credit limit of
`
2 lakh
and below. These also show the concentration of such small borrowal accounts
in these three backward regions. Third, nearly 80% of small borrowal accounts
when defined as
`
25,000 cut-off limit or 56% when defined as
`
2 lakh have been
in rural and semi-urban areas and hence their contraction is sure to hurt the
borrowers in such areas. Fourth, about 22% of the number of small accounts
and 18.1% of the amount outstanding of such accounts have been in respect of
women borrowers; over the years this proportion has edged up implying that
women borrowers have increased their share of bank borrowings; This is so
even when the cut-off limit has been raised to
`
2 lakh. Such is not the case with
the borrowers amongst scheduled castes and scheduled tribes; their share has
remained generally static for many years; the shares of women in these groups
are also broadly the same. Also, when the cut-off limit is raised to
`
2 lakh,
the shares of these categories have slipped to miniscule levels of 2.0 to 2.5%
for STs and 3.0% to 6.0% for SCs from 6.0 to 7% and 12 to 18% respectively,
from the earlier stage when the cut-off limit was
`
25,000. Fifth, even within the
small borrower category, still smaller loans up to
`
7,500 had accounted for
80.5% of the number of accounts and 50% of the loan amount outstanding in
March 1993, which had slipped to 64% and 32%, respectively, by March 1997.
When the cut-off limit is
`
2 lakh, the shares of categories with
`
25,000 credit
limit have fallen to 48.3% in terms of accounts and 15.5% in term of amount
within the defined small borrowal category in March 2008. Sixth, about 50%
of the small borrowal accounts have been granted under special asset-creating
employment programmes like the IRDP, SEEUY, SEPUP, DRI and others. This
proportion slips somewhat to around 45% when the cut-off limit is
`
2 lakh.
Seventh, regional rural banks (RRBs) stand out as the banks serving the small
borrowal accounts; it is more so in rural areas. Many of these phenomena are
getting further reinforced in the more recent period. Finally, small borrowal
accounts have about two-thirds of credit outstanding as standard assets, which
is somewhat lower than that for the public sector banking system as a whole
at 88%. Standard assets of small borrowal accounts have risen with the size
of loans but have been higher for agricultural activities than for industry, trade
and transport except for personal and professional loans; the latter categories
thus have weaker assets.
