Self-Help Group–Bank Linkage Programme in India: Trends, Regional Variations and Institutional Performance
Nandini Saha
Department of Agricultural Economics, Veer Kunwar Singh College of Agriculture, Dumraon, Buxar-802136 (Bihar), India.
Mani Bhushan *
Department of Agricultural Extension, Veer Kunwar Singh College of Agriculture, Dumraon, Buxar-802136 (Bihar), India.
Omprakash Naik N
Department of Economics, Government First Grade College, Yellapur, Uttar Kannada -581359 (Karnataka) India.
Pramod Kumar
Division of Agricultural Economics, ICAR-Indian Agriculture Research Institute, New Delhi-110012, India.
*Author to whom correspondence should be addressed.
Abstract
Among various initiatives, the Self-Help Group–Bank Linkage Programme (SHG-BLP), launched by NABARD in 1992, is the world’s largest microfinance movement aimed at promoting financial inclusion. It has proved to be one of the key programmes aimed towards socio-economic upliftment of rural as well as urban poor. So, this study tried to analyse the performance of SHG-BLP and also regional disparities in SHG-BLP implementation across Indian states using secondary data and different analytical tools. The results indicate substantial growth in key financial indicators—savings, loan disbursement, outstanding credit, and non-performing assets—over time, with Regional Rural Banks (RRBs) outperforming other financial institutions. The Eastern region emerged as the fastest-growing area in terms of SHG activity. The regional as well as institutional disparity in SHG-BLP performance need to be addressed through a more focused and inclusive approach.
Keywords: Self-help group, microfinance, NABARD, savings, loan, NPA