The Performance of Self Help Group-Bank Linkage Model in India

This study aims at analyzing the performance of the Self Help Group-Bank Linkage Model (SHG-BLM) in India which was introduced by National Bank for Agriculture and Rural Development (NABARD) in early 1990s which connected the unorganized banking sector to a formal and organized banking sector. Self-Help Group Bank Linkage Programme which is the largest microfinance programme in the world. Today, it consists of approximately 10 Crore households, more than 85 lakh SHGs with deposit of around Rs.16114 crores and loan outstanding of around Rs.61600 crores. There are three aspects considered while analyzing the growth of the program namely, savings, loans disbursement and loan outstanding for the past 5 years data from 2012to 2017. The study also analyzes the impact of Non-profiting assets on the loan outstanding by banks; regression analysis is used to find out the impact. The results of the study shows that there is a growing pattern in the development of SHG BLM as well as increasing penetration of the program in the India economy. Further it is also observed that there is a positive impact of non-profiting assets on loans advanced by commercial banks.