International Journal of Commerce and Management Studies (IJCAMS)

Peer Reviewed, Indexed Journal, ISSN 2456-3684

Vol.6, No.3, 2021, www.ijcams.com

Growth and Trends of Banks in Supporting the Self-

Help Groups of West Bengal
Priyankar Modak
State-Aided College Teacher
Department of Commerce
Surendranath Evening College, Kolkata- 700009
[email protected]

Luxmi Jha
State-Aided College Teacher
Department of Commerce
Surendranath Evening College, Kolkata- 700009
[email protected]

Abstract
Microfinance has become an important term in INTRODUCTION:
many countries especially developing countries BACKGROUND OF THE STUDY:
like India. National Bank for Agricultural and The role of banking as a microfinance has
Rural Development (NABARD) have primarily emerged as an independent branch of study, a
initiated in India with the purpose to provide development procedure, an industry for
credit or loans assistance to poor people
improvement and a resolution in recent years
especially those who are below poverty lines, so
as to improve their standard of living and income especially in developing countries like India.
levels. Microfinance through Self Help Group- As per the survey it was reported that almost
Bank Linkage Programme (SHGs-BLP) model 60% of India’s population is statistically
has been initiated to embolden thousands of rural unbanked and out of the banked population
people, especially women so that they too can nearby 15% are account holders and aware of
contribute to their families wellbeing by credit facilities (https://www.rbi.org.in/). In
spending money for the family and future
such a situation the concept of microfinance
savings and hence empowering them. The need
for doing this study is to observe the present acted as a source of relief for many poor
status of banks to support the Self-Help Groups people.
of West Bengal. This study makes a modest Microfinance is considered as one of
attempt to represent the ‘growth and trends of the just and sustainable solutions to mitigate
banks in supporting the SHGs’ by way of widespread poverty of a country by providing
microfinance for the poor people. The objectives finance to the poor people for carrying out
of the study are to examine the current status of
productive activities and several projects,
savings made by SHGs and WSHGs with
commercial banks, regional rural banks, and hence in turn which will generate economic
cooperative banks and loans disbursed to SHGs surplusand in turn promotes small savings for
and WSHGs by respective banks in the last ten investments and also leads to empower
years. For this study, secondary data was used women (Ghosh 2012).
which wascollected from NABARD reports on NABARD have launched the concept of
‘Status of Microfinance in India’ for the last 10
SHGs-BLP to fill the gap in the financial
years from 2009-10 to 2018-19, and also
descriptive statistics has been used to analyze the network and distribution of banking activities
data. The results revealed that there is an increase to the poor section of our country (Tripathi
in savings and also in loan disbursement 2014). As it is well known fact that West
1
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irrespective of the types of banks but reported a Bengal is one of the most important states in
fluctuating growth rate in the last 10 years in the Eastern Region in respect of SHG-Bank
both the cases. linkage programme(Bera 2011), microfinance
plays crucial role in the lives of the poor
Keywords: Microfinance, SHGs & WSHGs,
Savings, Loan Disbursement, West Bengal. people. Their standard of living,
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
employment and socio-economiclargely gets afford to give proper education to their children
influenced especially women(Basu 2006). for a better future. But, the initiative took by
Very few studies rigorously examine the link NABARD in 1992 i.e. the SHGs-BLP, through
between microfinance and women’s which these primary needs are now become
empowerment so the present paper tries to fulfilled by the poor section through micro loan
study the role of banks to observe how it which doesn’t require any mortgage. Some
supports the SHGs- bank Linkage Programme research have conducted by (Rao 2010)
with Special reference to West Bengal. The (Venkataramany and Bhasin 2011) (Srikanth
aim of the study is to present the status of 2019) have figure out that through SHGs-BLP
savings made and loans disbursed to SHGs the standard of living have increased as
and WSHGs by different banks i.e. compared to past in the form of poverty
commercial banks, regional banks and rural alleviation.
banks with reference to the last 10 years. The facility of taking credit from banking
PROBLEM STATEMENT: sectors not only helps to secure life of own and
The Self-Help Groups-Bank Linkage Program increases the standard of living but also secure
introduced by NABARD in the year 1992 was the life of the dependent and again to carrying
an innovative idea to help those sections of the out of education of their children. Evidences
society who belong to the below poverty level from the previous studies conducted by (Gaiha
in India. To make success of the NABARD’s and Nandhi 2008), (Venkataramany and Bhasin
initiative banks were the main weapon. The 2011) who have tried to analyse the benefits of
instruments of microfinance that will reach to microfinance through self - help groups based
the poor section of the country are through the on survey in villages of India. It was also noted
banks i.e. through commercial banks, regional that loans taken were largely used for child’s
rural banks and cooperative banks. So, it was education and subsequently reduces child
very important to know how those banks have labour and child mortality.
gained the faith to collect the savings of the Again, after meeting the goal of getting a
poor section or how they have helped those by better standard of living and securing the
giving credit for their well-being. For this dependent’s education, microfinance also
reason the study was a modest attempt to show helped to increase production, thus improved
the trend of growth in savings and loan the economic growth and subsequently
disbursement made by the different banks enhanced the employment. Specially, the
through SHGs-BLP. women were benefitted the most by taking
micro credit for doing some work
SIGNIFICANCE OF THE STUDY: independently to continue their livelihood.
The initiative taken by NABARD in the year Many researchers like (Sarmah 2014), (Bera
1992 for the poor section of our country via 2011), (Ghosh 2012) (Swain and Wallentin
SHGs-BLP (Self-Help Groups-Bank Linkage 2009) have shown in their work that taking
Program) has immense importance for the micro credit from banks and implementation
betterment of standard of living of them of it in the different work field generated
(Srikanth 2019). In this regard, banks have a increased production, enhanced the economic
main role to play for getting a success of the growth and generated employment to the
initiative taken by NABARD. So, it was very nation.
important to know how the banks have gained Moreover, Swami Vivekananda said that “as
faith of the poor section in connection to bird cannot fly on one wing no society can make
savings, credit facility, and insurance and so progress unless its women too join in all
on. Hence, our study tried to perceive the role activities”. Through the development of
2

of banks in supporting the SHGs in the state of women the complete development of a country
Page

West Bengal, India. can be achieved. With a view to this mantra

Swami Vivekananda, some researchers (Gaiha
REVIEW OF LITERATURE:
and Nandhi 2008), (Swain and Wallentin
In India there are many villages where people
2009), (Ghosh 2012) (Pillai 2015) (Narang
are impecunious to feed their families and can’t
2012), have found that as the SHGs-BLP was
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
mainly focused on the poor women group of the in loans disbursed by banks to SHGs
country; thus it helped the women to empower andWSHGs during the last 10 years.
themselves through the accessibility of banking
activities and getting loan from banks and RESEARCH METHODOLOGY:
doing their choice of work. It has been believed This part of research shows in details about
that, micro finance can help to boost the how the research has been conducted and how
economy equality as there is a strong theanalysis has been performed. After the
interconnection in financial power, poverty and literature survey it was found that very few
Women. studies have been done on how the banks have
Lastly, but not the list, the important gained the faith of the poor people and how
role of implementing the program i.e. SHGs- much it could generate credit to the poor
BLP by NABARD was to increase the section of West Bengal.
economic condition of the poor people in the For showing the banks’ role in
village by increasing their income. Many assembling the savings of poor individuals and
research papers have shown that the goal of giving credit to them this study considers the
NABARD through SHGs-BLP has somewhat state of West Bengal purposively. There are
fulfilled. Research papers of (Sarmah 2014), three category of banks which are connected
(Ghosh2012) , (Bera 2011). to perform and act as a success of SHGs-BLP
namely ‘Commercial Banks’, ‘Regional Rural
RESEARCH GAP: Banks’ and Cooperative Banks’. So, we have
After reviewing the literatures on this area we analysed the records of these three kinds of
have observed that, the benefits of banks for meeting the objectives of this study.
microfinance through SHGs-BLP has been By using convenient sampling technique we
showed in many areas of the world but there have considered only last 10 year’s data for the
are no studies which have been conducted analysis purpose. Furthermore, the records of
with respect to growth and trend of banks in the banks have been collected from the report
supporting the SHGs in the state of West issued by NABARD called “Status of
Bengal. In this backdrop, we have attempted Microfinance in India” and also newspapers
to make a study on “Growth and Trends of and other journal articles have been used for
Banks in Supporting the Self-Help Groups of conducting the research. Descriptive research
West Bengal”. design has been followed and for executing the
analysis of data the study used Microsoft
RESEARCH QUESTIONS: Excel and SPSS 25.
In the view of the above, the study tries to
answer the following key research questions:- DATA ANALYSIS AND RESULTS:
1. What is the present status of In this section, this paper will analyse the data
microfinance in West Bengal? which has been collected from the annual
2. What is the trend of growth rate in report of NABARD on “Status of
savings made by the SHGs and Microfinance in India”for getting the
WSHGs in banksduring the last 10 outcomes of the above said questions. This
years? section carries four tables and twelve charts
3. What is the trend of growth rate in showing the savings done by the SHGs and
loans disbursed by banks to SHGs WSHGs with different kind of banks and the
and WSHGsduring the last 10 year? loans disbursed by these banks to the SHGs
and WSHGs in the state of West Bengal from
OBJECTIVES OF THE STUDY:
the year 2009-10 to 2018- 19.
1. To know the present status of
3

microfinance in West Bengal.

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2. To examine the trend of growth

rate in savings made by the SHGs
and WSHGs inbanks during the last
10 years.
3. To examine the trend of growth rate
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
Table 1: Savings of SHGs with Banks in West Bengal (Amt. Rs. lakh)
Commercial Banks Regional Rural Banks Cooperative Banks
Years Savings Growth in Saving Growth in Saving Growth in
(Rs) Savings s Savings s Savings
(Rs) (Rs)
2009- 15476.4 - 29358.99 - 14651.40 -
10 6
2010- 20985.9 35.60% 30581.48 4.16% 28746.68 96.20%
11 8
2011- 23145.4 10.29% 6505.83 -78.73% 8043.15 -72.02%
12 3
2012- 25673.2 10.92% 34885.93 436.23% 12135.69 50.88%
13 5
2013- 31503.6 22.71% 25823.15 -25.98% 24079.69 98.42%
14 7
2014- 33100.4 5.07% 35599.93 37.86% 58647.60 143.56%
15 0
2015- 37912.6 14.54% 49864.62 40.07% 65761.45 12.13%
16 8
2016- 43027.4 13.49% 70048.63 40.48% 82194.73 24.99%
17 0
2017- 65694.7 52.68% 89834.42 28.25% 49524.74 -39.75%
18 8
2018- 95295.7 45.06% 126382.44 40.68% 60221.49 21.60%
19 1
Mean 23.37% 58.11% 37.33%
S.D 0.17015145 1.47444304 0.68555778
5 8 5
C.V 72.80% 253.72% 183.62%

Table 1, shows the annual savings of the Self Help Groups in last 10 years in West Bengal with three
different types of banks i.e. Commercial Banks, Regional Rural Banks and Cooperative Banks. It can
be seen from the above table that, there is an overall growth in savings of the SHGs irrespective of the
types of banks. The maximum average growth in savings of the SHGs is with Regional Rural Banks
followed by Cooperative banks and Commercial Banks. Also, the growth rate is not stable, i.e. it is not
in a continuous increasing or decreasing trend, it is fluctuating in nature. Again, after doing the
Coefficient of Variation (CV) test, it can be seen that the growth rate of savings of the SHGs with
Commercial banks is more consistent than other two types of banks.

Chart 1: Trend of growth rate in savings done by SHGs with commercial banks 4
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Chart 1 show that, the growth rate of savings in commercial banks made by the SHGs is not stable. It
is fluctuating in nature. Again, it can be seen from the above chart that, irrespective of the fluctuating
trend, the growth rate is positive.
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
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Chart 2: Trend of growth rate in savings done by SHGs with regional rural banks

Chart 2 shows that, the growth rate of savings in regional rural banks made by the SHGs are not stable.
It is fluctuating in nature. Moreover, in the first four years the growth rate fluctuates hugely. But, after
the year 2013-14, the growth rate line shows almost linear.
Chart 3: Trend of growth in savings done by SHGs in cooperative banks

Chart 3 reflects that, the trends of growth in savings in cooperative banks by the SHGs are fluctuating
in nature. In the year 2011-12 it came down to negative 72.02 per cent whereas from the year 2012-13
to 2014-15 it showed increasing trend. Then again, in the year 2015- 16, it had a negative trend.

5
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 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com

Table 2: Savings of WSHGs with Banks in West Bengal (Amt. Rs. lakh)
Commercial Banks Regional Rural Banks Cooperative Banks
Years Savings Growth Savings Growth Saving Growth in
(Rs.) in (Rs.) in s Savings
Savings Savings (Rs.)
2009- 11619.5 25029.49 12460.99
10 3
2010- 16300.0 40.28% 22570.50 -9.82% 23844.23 91.35%
11 2
2011- 20743.8 27.26% 4576.46 -79.72% 7015.09 -70.58%
12 4
2012- 23175.5 11.72% 31864.84 596.28% 10103.58 44.03%
13 2
2013- 26845.7 15.84% 23327.34 -26.79% 19968.27 97.64%
14 1
2014- 29859.6 11.23% 32604.11 39.77% 26356.87 31.99%
15 6
2015- 31084.7 4.10% 47470.33 45.60% 50018.71 89.77%
16 3
2016- 34145.0 9.84% 62346.05 31.34% 74567.88 49.08%
17 2
2017- 50790.3 48.75% 86650.65 38.98% 46025.83 -38.28%
18 5
2018- 70521.8 38.85% 114929.2 32.64% 56563.49 22.90%
19 0 7
Mean 23.10% 74.25% 35.32%
S.D 0.16 2.00 0.58148282
8
C.V 69.78% 269.49% 164.62%

Table 2 depicts the annual savings of exclusively Women Self-Help Groups in three classesof banks
for the last 10 years in the state of West Bengal. It can be seen from the above table that, there is an ups
and downs in the growth rate of savings in commercial banks by the WSHGs. Although, in spite of
fluctuating trend in the in the growth rate of savings it is quite clear that, the growth rate is positive. The
growth rate of savings in case of Regional Rural Banks and Cooperative Banks showed fluctuating in
nature and also they have negative growth rate in the last 10 years. Moreover, after doing the average
of the growth rate of savings made by WSHGs in different classes of banks, it was observed that, the
maximum growth rate belongs to Regional Rural Banks followed by Cooperative Banks and lastly
Commercial Banks. Again, after doing the Coefficient of Variation (CV) test, it is clear that,
6
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 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
Commercial Banks has the more consistent growth rate in savings following by Cooperative Banks and
Regional Rural Banks.

Chart 4: Trend of growth in savings done by WSHGs in commercial banks

Chart- 4 represents the trend of growth rates in saving made by WSHGs in commercial banksfor the
last 10 years in the state of West Bengal. It can be seen from the above chart that, in the first three years
the growth rate declines, then it raises and declined again. Finally, in the year 2017-18 the growth rate
maximised at 48.75% and showed declining trend again. So, it depicts clear picture that the trend of
growth rate in savings was volatile in nature. Furthermore, it can be said that, although the trend of
growth rate was fluctuating, but, it was positive throughout the years.

Chart 5: Trend of growth in savings done by WSHGs in regional rural Banks

Chart- 5 depicts the trend of growth in savings done by the Women Self-Help Groups in regional rural
banks for the last 10 years. It can be seen from the above chart that in the first two years the trend was
negative then in the year 2012-13 it was observed with maximum i.e. 596.28%. Again, it declined, but
from the year 2014-15 to 2018-19 it was almost stable and showed positive trend.

Chart 6: Trend of growth in savings done by WSHGs in cooperative banks

7
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 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com

Chart-6 depicts the trend of growth in savings done by Women Self-Help Groups in cooperative banks
for the last 10 years. It can be seen from the above chart that, the trend of growth in savings done by
WSHGs is fluctuating tremendously. It also reveals that the trend of growth was negative in the year
2011-12 and 2017-18.

Table 3: Loan disbursed to SHGs by Banks in West Bengal

(Amt. Rs. lakh)
Commercial Banks Regional Rural Banks Cooperative Banks
Years Loan Growth of Loan Growth of Loan Growth of
Amount Loan Taken Amount Loan Taken Amount Loan Taken
2009- 21998.12 21443.03 9981.08
10
2010- 22091.6 0.42% 25029.54 16.73% 10468.66 4.89%
11
2011- 25956.46 17.49% 22277.88 -10.99% 6902.21 -34.07%
12
2012- 22436.91 -13.56% 14731.23 -33.88% 14247.1 106.41%
13
2013- 23625.97 5.30% 20542.88 39.45% 24347.39 70.89%
14
2014- 26231.25 11.03% 68796.37 234.89% 55477.04 127.86%
15
2015- 61948.43 136.16% 70983.69 3.18% 62446.5 12.56%
16
2016- 77482.7 25.08% 75307.11 6.09% 80790.74 29.38%
17
2017- 154538.9 99.45% 269880.4 258.37% 63953.81 -20.84%
18 8 9
2018- 223551.1 44.66% 373396.9 38.36% 98628.7 54.22%
19 8 1
Mean 36.23% 61.36% 39.03%
S.D 0.49852990 1.07629698 0.55412049
8 9 6
C.V 137.62% 175.42% 141.96%

Table-3, shows the loans disbursed to the SHGs over last 10 years in West Bengal district. The loans
are taken by the SHGs from three different types of banks i.e., Commercial Banks, Regional Rural
8

Banks and Cooperative Banks. It can be seen from the above table that there was a continuous increase
Page

in the amount of loan taken by the SHGs from these three types of banks. The highest average growth
in loan taken by SHGs is from the Regional Rural Banks followed by the Cooperative Banks and
Commercial Banks. Again, after doing the Coefficient of Variation (CV) test, it is clear that, the
Commercial Banks are more consistent in giving loan to the SHGs having least CV scores among all
the banks.
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
Chart 7: Trend of growth in loans disbursement by commercial banks to SHGs

Chart-7 shows the trend of growth in loans disbursement done by the commercial banks to SHGs in the
last ten years. It is very clear from the above charts that, the growth of loans taken by the SHGs from
commercial banks in the last ten years reported highly volatility. Again, in the year 2012-13, it had a
negative growth and whereas in the year 2015-16 it marked a highest growth rate.

Chart 8: Trend of growth in loans disbursement by regional rural banks to SHGs

Chart-8 reveals the trend of growth in loans disbursement done by regional rural banks to SHGs in the
last ten years. The chart shows that, in the first two years it had a negative trend, followed by increasing
trend and again became negative. The chart shows that, the maximum growth of loan taken by the SHGs
from regional rural banks was 258.37% in the year 2017- 18.

Chart 9: Trend of growth in loans disbursement by cooperative banks to SHGs

9
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 International Journal of Commerce and Management Studies (IJCAMS)
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Vol.6, No.3, 2021, www.ijcams.com

Chart -9 reflects the trend of growth in loan disbursement by the cooperative banks in last tenyears to
the SHGs. It can be seen from the above chart that the growth rate was not stable at all. It shows
tremendous fluctuations. The maximum growth in loan taken by the SHGs wasin the year 2014-15.

Table 4: Loan disbursed to WSHGs by Banks in West Bengal (Amt. Rs. lakh)
Commercial Banks Regional Rural Banks Cooperative Banks
Years Loan Growth Loan Growth Loan Growth
Amoun of Loan Amoun of Loan Amoun of Loan
t Taken t Taken t Taken
2009- 17627.27 17068.45 460.94
10
2010- 13962.42 -20.79% 23975.26 40.47% 8039.79 1644.22%
11
2011- 16921.12 21.19% 21046.06 -12.22% 4872.41 -39.40%
12
2012- 19437.07 14.87% 13270.36 -36.95% 13017.2 167.16%
13 0
2013- 15429.59 -20.62% 16911.92 27.44% 17224.0 32.32%
14 4
2014- 18663.07 20.96% 66887.19 295.50% 49951.1 190.01%
15 8
2015- 43763.42 134.49% 69897.65 4.50% 51353.4 2.81%
16 9
2016- 59942.22 36.97% 54248.49 -22.39% 71674.5 39.57%
17 9
2017- 130006.0 116.89% 259809.9 378.93% 61017.5 -14.87%
18 0 3 0
2018- 137683.0 5.91% 312962.8 20.46% 93787.2 53.71%
19 7 3 4
Mean 34.43% 77.30% 230.61%
S.D 0.55283927 1.50817545 5.35738373
5 9 8
CV 160.58% 195.09% 232.31%

Table- 4 shows the loans disbursed to the WSHGs over last 10 years in West Bengal district. The loans
were taken by the WSHGs from three different types of banks i.e., Commercial Banks, Regional Rural
10

Banks and Cooperative Banks. It can be seen from the above table that there was a continuous increase
in the amount of loan taken by the WSHGs from these three types of banks. Moreover, we can see that
Page

the average growth in loans disbursement by cooperative banks to WSHGs is higher than other two
types of banks. Again, it is clearly seenfrom the table that, the Coefficient of variation of the growth
rate in loans disbursement are more consistent in case of commercial banks as compared to other banks.
 International Journal of Commerce and Management Studies (IJCAMS)
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Chart 10: Trend of growth in loans disbursement by commercial banks to WSHGs

Chart -10 reveals that, the growth rate in loans disbursement by commercial banks to WSHGs are
fluctuating in nature. In the year 2014-15 and 2015-16 this growth rate increased on an increasing rate
then it again declined and fluctuated thereafter.

Chart 11: Trend of growth in loans disbursement by regional rural banks to WSHGs

Chart-11 reveals that, the growth rates in loans disbursement by regional rural banks to WSHGs are
fluctuating in nature. From the year 2010-11 to 2012-13 it was declining. Then, in the year 2013-14 and
2014-15 this growth rate increased on an increasing rate then it again declined and after that it was
fluctuating.
Chart 12: Trend of growth in loans disbursement by cooperative banks to WSHGs
11
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Chart-12 depicts that, in the year 2011-12 the growth rate in loans disbursement by the cooperative
banks to the WSHGs had fall greatly. Then, the growth rate tried to push up and became positive
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
throughout the next few years.
beginning from 2009-10 as a base year, the
FINDINGS AND CONCLUSIONS: SHGs and WSHGs have used the micro credit
MAJOR FINDINGS: facility available from all the three types of
Relating to trend of growth rate in savings banks which have been mentioned in this
done by the SHGs and WSHGs with research showing an increasing movement in
different banks in West Bengal: total amount. Table-3 and Table-4 represents
It can be seen from the above analysis that, in that, the amount of loan disbursed by the
the last 10 years starting from 2009-10 as a commercial banks, regional rural banks and
base year, the SHGs and WSHGs has saved cooperative banks have increased in total
their hard earned money in all the three types amount vastly. Moreover, the highest average
of banks which has been considered in this growth rate of loan disbursement by banks
research showing an increasing flow. From was with ‘Regional Rural banks’ but when it
Table-1 and Table 2, it is clearly depicted that, comes to measure the consistency
the amounts of savings of the SHGs and the ‘Commercial Banks’ won the game.
WSHGs in West Bengal made with these Furthermore, it was observed from
kinds of banks have been increased Chart-7 to Chart-12 that, the trends of
continuously up to the year 2018-19 as loansdisbursement made by different banks to
compared to the base year 2009-10. both SHGs and WSHGs have a fluctuating
Furthermore, after doing the descriptive tendency. This implies that, either the loan
analysis, the highest average growth rate in repayment capacity of the members of SHGs
savings done by the SHGs and also WSHGs and WSHGs were not up to the mark that’s
was marked with ‘Regional Rural Banks; why they were afraid to take loans till they
followed by ‘Cooperative Banks’. But, when repay it or they have invested their savings to
it comes tothe measurement of consistency of the activities they were engaged in instead of
the growth rate in savings made by the SHGs taking loans.
and WSHGs, it was observed that, the
‘Commercial Banks’ were more consistent as CONCLUSION:
compared to other category of banks in respect In West Bengal Microfinance acts as a very
of collecting savings. This implies that, the strong weapon to help the impecunious people
poor people have greater faith on commercial of the state. From 2009-10 to 2018-19 there
banks rather than others. was a continuous increase in the number of
Thereafter, from the Chart-1 to Chart- Self- help Groups; in 2009-10 the number of
6 concerning to the trend of growth rate in SHGs were 6,47,059 which increased to
savings done by both SHGs and WSHGs with 9,76,358 in 2018-19 (NABARD Report on
different types of banks have shown that there “Status of Micro Finance in India”). This
was a fluctuating trend in the growth rate of implies that the poorpeople were immensely
savings done by these entities. But, one benefitted with the SHGs-BLP initiative taken
important thing which can be found out that, by NABARD. Again, from the present study it
instead of having a fluctuating trend in growth was found that the Self-Help Groups including
rate, in respect to commercial banks the the Women SHGs were participated in the
growth rate became always positive Self-Help Group Bank Linkage Program
throughout the years. This can imply that, they actively. This results in many ways like, the
might have greater faith in commercial banks increase in savings, increase in taking credit
as compared to other category of banks in the facility from bank etc. It means that, the SHGs
present scenario where banking fraud are were highly benefitted with the facilities
12

commonly happening. provided by the banks through microfinance.

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Relating to trend of growth rate in “Loan But, it also reflects that the average growth
Disbursement” made by different banks to rates of savings with all kind of banks done by
the SHGs and WSHGs in West Bengal: the SHGs (including WSHGs) were
From the aforementioned analysis, it can be fluctuating in nature. Especially with
perceived that, in the previous 10 years cooperative banks the fluctuation was
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
noticeable. This can imply that, they might
have greater faith in commercial banks as Gaiha, Raghav, and Mani Arul Nandhi. 2008.
compared to other category of banks in the “Microfinance, Self-Help Groups and
present scenario where too much banking Empowerment in Maharashtra.” Pp. 179–99 in
fraud is happening. Thereafter, in respect to The Indian Economy Sixty Years After
loan facility, the SHGs (including WSHGs) Independence, edited by R. Jha. London:
have utilized it very well, but the average Palgrave Macmillan UK.
growth rate of taking loans from different
banks was also fluctuating in nature. This Ghosh, Madhusudan. 2012. “MICRO-
implies that, either the loan repayment FINANCE AND RURAL POVERTY IN
capacity of the members of SHGs and WSHGs INDIA SHG–Bank Linkage Programme.”
were not up to the mark that’s whythey were Journal of Rural Development 31(3):17.
afraid to take loans till they repay it or they
have invested their savings to the activities Narang, Uma. 2012. “Impact of Self- Help
they were engaged in instead of taking loans. Groups Bank Linkage Programme in India.”
International Journal of Trade and Commerce
LIMITATION OF THE STUDY: 1(2):220–28.
This study considers only ten years data for
finding out the answers of the mentioned Pillai, Dr Thirumagal J. 2015. “Microfinance;
Women Empowerment; Self Help Groups.”
research question. If the time period of the
INDIAN JOURNAL OF APPLIED RESEARCH
study could be extended then the result might
5(3):5.
be changed.
Rao, M. Prasada. 2010. “Impact of Self Help
SPECIFIC SUGGESTIONS:
Group –Bank Linkage Programme and its Role
As we have seen that the trend of savings of
on the Upliftment of the Poor.” Padmashree Dr.
SHGs with commercial banks was fluctuating
D.Y. Patil University, Navi Mumbai.
in nature but the trend was positive throughout
the years as compared to other kind of banks.
Sarmah, Sri GunindraNath. 2014. “Role of
It implies the members of SHGs have higher
Microfinance through Self Help Groups on
faith on commercial banks as compared to
Employment and Income Generation- A Study
regional rural banks and cooperative banks.
with Reference to Lakhimpur.” 21.
So, those kinds of banks have to gather more
faith of the SGHs. Srikanth, M. 2019. An Evaluation of the SHG-
BLP with Special Reference to Its Loan
FUTURE RESEARCH SCOPE:
Portfolio and Asset Quality. Hyderabad - 500
There are many kind of work can be done like,
030: National Institute of Rural Development
1. Comparison of saving behaviour of the
SHGs in rural and urban areas in West and Panchayati Raj.
Bengal.
Swain, Ranjula Bali, and Fan Yang Wallentin.
2. Does the other products of microfinance
2009. “Does Microfinance Empower Women?
like micro insurance, micro remittance and
Evidence from Self‐help Groups in India.”
micropension are opted by the SHGs or not
International Review of Applied Economics
and its trend.
23(5):541–56. doi:
References: 10.1080/02692170903007540.
Basu, Dr Jyotish Prakash. 2006.
“Microfinance and Women Empowerment: Tripathi, Ashutosh Kumar. 2014. “Spread of
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An EmpiricalStudy with Special Reference to the Self-Help Group–Bank Linkage

West Bengal.” 29.
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Programme in India: Potential Vis-à-Vis

Achievements.” Journal of Asian and African
Bera, Sudhin Kumar. 2011. “A Study of Studies 49(2):215–33. doi:
SHG-Microfinance Initiative in 10.1177/0021909613485698.
PurboMidnaporeDistrict of West Bengal.”
Economic Affairs 56(2):10.
 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.6, No.3, 2021, www.ijcams.com
Venkataramany, Sivakumar, and Balbir B.
Bhasin. 2011. “Path To Financial Inclusion:
The Success Of Self-Help Groups-Bank
Linkage Program In India.” International
Business & Economics Research Journal
(IBER) 8(11). doi: 10.19030/iber.v8i11.3181.

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