Self-help Groups in Mayurakshi Gramin Bank: Documentation of Successful Experiences, Impact and Performance Analysis
This study discusses the successful self help groups (SHG) of the Mayurakshi Gramin Bank headquartered in the Birbhum district of West Bengal. It also aims to measure the potential of SHG as a commercial proposition contributing to the business and profitability of the bank.The study included 32 SHGs from the banks three branches, and 70 individual members from the selected SHGs. It found that the total turnover of SHG business was 7 percent of the total turnover of the bank. Net SHG interest income contributed 20 percent of the total profitability of the bank. Other findings include:
- SHGs contribute in improving the overall performance of the bank by increasing recovery of loans and effecting increases in low cost deposits;
- Average credit linkage of 40.8 percent is low, the bank must credit-link more groups;
- Bank has to recognize the business potential of SHGs and appoint a separate accounting head for assessing SHG income and expenditure.
The study proves that SHG is a commercial proposition. The bank needs to evolve a proper management information system in a computerized environment so that SHG can be internalized as a profitable business proposition.
