Financial Inclusion Conference - Sa-Dhan

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BREAKAWAYSESSION - 2F i n a n c i a l I n c l u s i o n C o n f e r e n c e - 2 0 1 2“The First Mile Walk into the Financial System”has helped it to secure funding from the banks again. He also underscored theneed for the MFIs to build relationship with the larger community (other than theborrowers) and educate them. Various social activities undertaken by Bandhan hashelped the organisation to build good relationship with the community. Mr Ghoshwas of the opinion that to improve the funding situation the foremost requirementis to rebuild the image of the sector.32
F i n a n c i a l I n c l u s i o n C o n f e r e n c e - 2 0 1 2“The First Mile Walk into the Financial System”Session-6Breakaway Session 3 :Overcoming Barriers to Resource Flow to SHGs and FederationsBREAKAWAYSESSION - 3Highlights• The lending growth rate to SHGs has slowed down in last two years.• The portfolio quality of SHGs, in general, has declined in last two years and PAR inSHGs is currently around 7-8%, which is a cause of concern.• SHGs and MFIs have to face practical constraints in availing funds due to elaborateand complex due diligence process of banks.• The slowdown in SHGs is temporary and it is likely to regain momentum. Thecurrent slowdown is primarily due to shift of focus of banks from SHGs toincreasing outreach to unbanked areas through branch networks and Bcs.• In last two years over 75,000 unbanked villages and 14.5 million people have beenbrought under financial services fold.• SBI has taken specific steps to facilitate lending to SHGs.• Private sector banks are coming with innovative ideas under BC to make fundsefficiently available to SHGs.PANEL OF SPEAKERS:• Mr Vivekanand Salimath, Chairman, IDF Financial Services Pvt Ltd• Mr Parshuram Nayak, Whole time Director, Swayamshree Microcredit Services• Mr Ajay Desai, Group Executive VP & Chief Financial Inclusion Officer, YesBank• Mr S R Nimesh, General Manager, Rashtriya Mahila Kosh• Mr J K Thakkar, Deputy General Manager, State Bank of IndiaThe session started with Mr Salimath giving a brief background of the panelists andtheir institutions. Mr Salimath then set the context for the session by highlightingthat in the last two years the growth rate of SHG lending has come down and alsothe loan portfolio quality in SHGs has been steadily declining. SHGs currently havea PAR of around 7-8%, which is a cause of concern. He also mentioned that thegovernment has recently started ‘anchor-NGO’ scheme, which aims to build betterrelation and enhance coordination between SHGs and banks through anintermediary anchor NGO.Mr Salimath presented a short film on IDF’s Banking Correspondent programmecalled ‘Sujeevana’. The film highlighted that access to finance at reasonable interesthad freed people from the clutches of moneylenders. Mr Salimath remarked that33
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