SHG-bank linkage schemes deliver: Nabard

Canara Bank stood on top of the podium, followed by State bank of Mysore for the direct linkage and Vijaya Bank won the prize for indirect linkage under the Self Help Group (SHG)-Bank Linkage Programme.

The prize was awarded as part of the foundation day celebrations of National Bank for Agriculture and Rural Development (Nabard) honouring the best performing banks and NGOs in micro finance.

"These awards have been instituted by Nabard to promote healthy competition amongst all the players as also to bring about improvements in quality and sustainability of innovations in rural development," said B B Mohanty, chief general manager, Nabard, speaking at the 24th foundation day celebrations of the bank.

Speaking on the occasion, he added that Karnataka ranks first in implementation of programmes like watershed development, the largest number of farmer's club formed and also in setting up agri-export zone. The state has received the highest allocation of Rs 60 crore for watershed development. Till date, 105 watersheds have been identified for development in the state.

In Karnataka, the SHG-Bank linkage programme continued to maintain its progression with over 2.37 lakh SHGs being promoted. Of this 1.63 lakh groups have been credit-linked with an aggregate assistance of Rs 551.74 crore. Ninety per cent of the SHGs promoted are women's groups.

The bank's cumulative refinance support has been Rs 254.35 crore covering 94,635 SHGs benefitting 35.53 lakh rural poor families.

In its efforts to accelerate rural development, the bank has provided greater access to institutional credit to the rural poor through innovations in micro finance, encouraging setting up of rural micro enterprise through the Rural Promotion Corpus Fund (RPCF) and establishing funds for specific activities like promoting infrastructure in rural areas through Rural Infrastructure Development Fund.

In Karnataka, the aggregate refinance assistance for term investments in farm and non-farm sectors stood at Rs 5,342 crore (as on March, 2005). Nabard has also extended production credit assistance of Rs 1,166 crore to meet short-term credit requirements which included Rs 755 crore for District Central Co-operative Banks and Rs 411 crore for RRBs.

In the bank's initiative under the rural non-farm sector, it has supported Rural Entrepreneurship Development Programmes and women entrepreneurs through special schemes by setting up micro-enterprises and sustaining their marketing efforts.

In the state, the District Rural Industries Project is being implemented in five districts while cluster development programmes covers six identified clusters.

Speaking on the occasion, R V Deshpande, minister for co-operation, said that the government is thinking of implementing the Vaidyanathan Committee report on strengthening the co-operative sector.

The Vaidyanathan Committee report speaks of the need for computerisation and professional auditing of the co-operative sector. The Central government has sent the report to the state governments and the Karnataka government is yet to approve the report.