SBI's
micro-credit policy
SBI's micro-credit
policy has empowered self help groups to bring institutional finance to
the rural reaches of Bengal. The growth in micro finance has been on the
rise over the last few years. It has almost been a win-win situation for
both parties - the beneficiary in the rural areas and bank. The former
managing to steer clear of money lenders and small finance companies and
the latter happy to be able to show a 100 percent recovery at the year
end.
SBI's micro
credit on the Sagar Islands, disbursed though the self help groups preferably
NGOs, to the rural borrowers, has been thumping success. These self help
groups or SHG's comprise ten to twelve members, generally women, who are
below the poverty line. These women deposit Rs.15-20 per month depending
on their financial capability for about six months. Thereafter, they are
entitled to a micro-loan, almost three times the amount deposited in these
last six months.
The loan is
then distributed to three members who need it most. Those women who avail
of the loan then repay it within the next six months. In about two years
time all the members in the SHG are in a position to draw micro-credit.
For the flood-prone
area of Sundarbans, which has been in the constant throes of uncertainties
especially affecting the under-privileged, the system of micro credit has
worked wonders. The recipients of the loans have been mostly women who
have been able to tide over economic problems in a big way.
SBI has a cluster
of about six branches around Kakdwip, and this has been able to provide
great succcour to the people in the region. According to Shri T.G. Banerjee,
AGM, PR and Community services banking, about Rs.59.44 lakhs have been
disbursed to 595 SHGs as on February 28, 2001 in the Bengal circle. This
was about Rs.31.21 lakh disbursed the previous fiscal.
"Coastal fishing
and agriculture have been extensively financed by the bank. Besides, the
success of SHGs has been phenomenal as they have stopped being lured by
small finance companies or money lenders who claim interests of Rs.10-15
a month", said Mr. Himangshu Ranjan Sur, Branch Manager, Kakdwip. On a
comparative scale, SBI lends to the NGOs at 11 per cent which is then lent
to the SHG at 16 percent.
Mr. Nazrul
Islam, Secretary of INSS, the NGO, said "This micro credit has helped facilitate
an integrated development in the entire region".
Food processing
sector target is 15.4 lakh tonne
Food processing
industry has got complete exemption from excise duty in the Union Budget
and has targeted a 15.4 lakh tonne production of processed fruits and vegetables
in the next fiscal.
"In the wake
of the tax concessions the food processing industry has got, it has planned
to take a slew of measures including low cost packaging material, own retail
channels, better technology and trained manpower to achieve a capacity
utilisation of 70 percent in 2001-02", Executive Secretary, All India Food
Processors Association, Shri K.P. Sarin said.
He said the
blueprint had been prepared to increase the annual processing to 15.4 lakh
tonnes from the current nine lakh tonnes which was only 40 percent of the
industry's capacity of processing 22 lakh tonnes.
|