ROLE OF REGIONAL RURAL BANKS IN SELF HELP …pezzottaitejournals.net/pezzottaite/images/ISSUES/.../IJRRBPV4N213.pdf · rural areas by opening a large number of “No Frill” accounts

Volume 4, Number 2, April – June’ 2015

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ROLE OF REGIONAL RURAL BANKS IN SELF HELP GROUPS-BANK LINKAGE

PROGRAMMES IN ODISHA

Sunil Kumar Das17 Dr. Subhransubala Mohanty18 Dr. Subhashree Panda19

ABSTRACT

The banks play the role of financial intermediaries in the economic development of a state. The credit disbursed by the banks

is the main tool for resource allocation in the economy. Public Sector Commercial Banks (PSCBs) mainly provides services in the urban areas and few selected places of rural areas. As per 2011 Census, Odisha has a population of 4.20 crore, of which

3.50 crore (83.33%) live in villages. The existences of commercial banks in the rural areas of Odisha are insufficient to cater the needs of the poor people. The banking system in Odisha includes public sector commercial banks, private sector

commercial banks, Regional Rural Banks (RRBs) and Co-operative Banks. Regional Rural Banks play a vital role in the agriculture and rural development of India. The RRBs as a group have become strong intermediary for financial inclusion in

rural areas by opening a large number of “No Frill” accounts and by financing under General Credit Card (GCC).

The RRBs have more reached to the rural area of India, through their huge network & are actively participating in the credit

flow to agricultural sector. The success of rural credit in India is largely depends on their financial strength. RRBs along with commercial and co-operative banks have a significant role in the multi-agency approach for delivery of agriculture and rural

credit. RRBs are ideally suited for achieving financial inclusion. Amalgamation, recapitalization, interest subvention etc. are some of the measures taken with a view to strengthen the RRBs for playing greater role in agriculture, rural lending and

financial inclusion. RRBs are key financing institution at the rural level, which takes the responsibility of fulfilling the credit requirements of Self Help Groups (SHGs). The RRBs also play a very crucial role in Self Help Groups (SHGs) - Bank linkage

Programme in Odisha Therefore, it is necessary to study the progress of RRBs in SHG-Bank linkage programme in Odisha.

KEYWORDS

Self Help Groups (SHGs), SHG-Bank Linkage Programme (SBLP), Regional Rural Banks (RRBs), NABARD, Microfinance etc.

INTRODUCTION

Banks play an important role in the mobilization and allocation of resources in any country (Ibrahim 2010). Rural people in India are facing problems in the inadequate supply of credit. The major source of credit to the rural households, particularly low-income

working households, has been the informal sector. Informal sector advances loans at very high rates of interest; the terms and conditions attached to such loans have given rise to an elaborate structure of intimidation of both economic and non-economic

conditions in the rural population in India (Nathan & Ramachandran 2001). The Regional Rural Banks were established under the

provisions of an ordinance promulgated on 26 September 1975 and the Regional Rural Bank Act, 1975 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors (RRB 2008). The objectives as given in the preamble o f the

Regional Rural Banks Act of 1976 were “to develop the rural economy in providing for the purpose of development of agriculture, trade commerce, industry and other productive activities in the rural areas, credit and other facilities particu larly to the

small and marginal farmers, agricultural labourers, artisans and small entrepreneurs and for matter connected therewith and incidental thereto” (RBI 2008).

According to the National Commission on Agriculture, a strong foundation of agriculture is a necessary condition for sustained

and rapid economic and social development in India. Without this, it will be impossible to accelerate growth and ensure sustained

improvement of the economy (GOI 2006). An overwhelming majority of the poor is in rural areas and they continue to depend on agriculture for want of any other livelihood opportunities outside the sector. Thus, the development of agriculture is a pre-requisite

for the overall development of our country. However, like other sectors, agriculture also needs some basic facilities for its development. The availability of timely credit has been identified as one of the main requirements of agricultural sector. It is

rightly observed that, the lesson of universal agrarian history from Rome to Scotland is that credit is essential for agricultural developments. Neither the condition of the country nor the nature and tenures, nor the position of agriculture, affects the one great

fact that agriculturist must borrow (NABARD 2007).

Inception of Regional Rural Banks (RRBs) can be seen as a unique experiment as well as experience in improving the efficacy of

rural credit delivery mechanism in India and in Odisha. With joint shareholding by Central Government, the concerned State

17Finance & Accounts Officer, Central Rice Research Institute (C.R.R.I), Indian Council of Agricultural Research, Odisha, India, [email protected] 18Reader (Economics), Ekamra College, At-Sundarpada, P.O. Kapil Prasad, Odisha, India, [email protected] 19Assistant Professor (Management), Parala Maharaja Engineering College, Odisha, India, [email protected]

mailto:[email protected]







Government and the sponsoring bank, an effort was made to integrate commercial banking within the broad policy framework of social banking keeping in view the local peculiarities. The genesis of the RRBs can be traced to the need for a stronger

institutional arrangement for providing rural credit. The Narsimham committee conceptualized the creation of RRBs in 1975 as a

new set of regionally oriented rural banks, which would combine the local feel and familiarity of rural problems & characteristic of cooperatives with the professionalism and large resource base of commercial banks. Subsequently, the RRBs were set up

through the promulgation of RRB Act of 1976. The Central Government, concerned, holds their Equity State Government and the Sponsor Bank in the proportion of 50:15:35. The financial health of the profit making RRBs has been maintained by the positive

contribution of the sponsor bank, whereas for the loss making RRBs, the sponsor bank acts as a drag on their performance. The loss making RRBs need attention of all the stakeholders and sponsor bank, to transfer them into profitable entities. RRBs were

supposed to evolve as specialized rural financial institutions for developing the rural economy by providing credit to small and

marginal farmers, agricultural labourers, artisans and small entrepreneurs. Over the years, the RRBs, which are often viewed as the small man’s bank, have taken deep roots and have become a sort of inseparable part of the rural credit structure. They have

played a key role in rural institutional financing in terms of geographical coverage, clientele outreach and business volume and contribution to development of the rural economy. A remarkable feature of their performance over the past four decades has been

the massive expansion of their retail network in rural areas.

Restructuring of Regional Rural Banks

The process of restructuring of RRBs has been initiated by the Government of India to improve the functioning, achieve the

economics of scale and to ensure better managerial control of RRBs. During the year 2012-13, 31 RRBs were amalgamated into 13 RRBs in 9 States viz.MP, Karnataka, Odisha, Bihar, Uttar Pradesh, Uttarakhand, Rajasthan, Himachal Pradesh and

Maharashtra. Odisha Gramya Bank was brought into existence on 7th January, 2013 through the process of amalgamation of Neelachal Gramya Bank, which is sponsored by Indian Overseas Bank, Baitarani Gramya Bank, sponsored by Bank of India and

Kalinga Gramya Bank, sponsored by UCO Bank. Government of India, Government of Odisha and Indian Overseas Bank own the Odisha Gramya Bank with a proportionate share holding percentage of 50:15:35. The head office of the bank is located at

Bhubaneswar with 9 regional offices. The Bank has wide network of 525 branches spread over 13 districts of Odisha. Utkal Grameen Bank was established on 1st November 2012 with the merger of Rushikulya Gramya Bank and Utkal Gramya Bank. The

bank is sponsored by State Bank of India and is jointly owned by the Government of India, Government of Odisha and State Bank

of India with a proportionate share holding percentage of 50:15:35. The head office of the bank is located at Bolangir with 7 regional offices. The Bank operates in 17 districts of western and southern Odisha, covering 63% of the geographical areas and

48% of the total population of Odisha.

Banking Network of RRBs in Odisha

If the banking network in Odisha as on 31st March 2014 is taken into consideration, out of total of 4,281 branches, public sector

commercial banks were having highest number of 2,637 branches followed by RRBs with 951 branches, private sector banks with 350 branches and co-operative banks with 343 branches. Out of total branches public sector commercial banks were having

highest rural area branches of 1,263 followed by RRBs with 808 branches, co-operative banks with 175 branches and private sector banks with 89 branches. Public sector commercial banks were having 47.90% of its braches at rural areas, whereas RRBS

were having 84.96% of its branches at rural areas. Private sector banks were having lowest of 25.43% of its branches at rural areas. It is clear that, RRBs have more reached to the rural area of Odisha and are actively participating in the Self Help Group-

Bank Linkage programme. OBJECTIVES OF STUDY

The objectives of the study are as follows:

To examine the progress of loans disbursed to SHGs in Odisha by RRBs.

To assess the amount of loans outstanding against SHGs in Odisha by RRBs.

To know the quantum of saving account and amount of SHGs in Odisha with RRBs.

METHODOLGY USED

The study is based on secondary data, which is collected from the published reports of National Bank for Agriculture & Rural Development (NABARD) & Reserve Bank of India (RBI). The data relating to savings, loan disbursed & loan outstanding of

SHGs are collected from the Annual Reports of National Bank for Agriculture & Rural Development (NABARD), report on Status of Microfinance in India published by NABARD for the period of 7 years from 2007-08 to 2013-14. All the banks i.e.

public sector commercial banks, private sector commercial banks, Regional Rural Banks (RRBs) & Co-operative banks and have been included under the category of all agencies. The data has been tabulated and analyzed by exercising various statistical

techniques.





DATA ANALYSIS & INTERPRETATION

The data analysis is divided into three parts. Part I deals with progress of bank loans disbursed to SHGs by RRBs and their

percentage of share in the disbursement of loans. Part-II describes the outstanding loans of SHGs with RRBs and their percentage of share in the outstanding loan. Part-III deals with the progress of saving linkage of SHGs with RRBs & their percentage of share

in the saving balance. Progress of Bank Loan Disbursed by RRBs to number of SHGs in Odisha

The loan disbursed to number of SHGs in Odisha by RRBs is given in Table-1.From Table-I, it is observed that, out of 33,255

SHGs financed by RRBs in 2007-08 from the total of 1,03,544 SHGs, Utkal Gramya Bank disbursed loan to the highest of 17,790 numbers of SHGs followed by Neelachal Gramya Bank of 6,641 SHGs & Kalinga Gramya Bank of 4,819 SHGs. Out of 32,227

SHGs financed by RRBs in 2008-09 from the total of 93,433 SHGs, Utkal Gramya Bank disbursed loan to the highest of 12,799 numbers of SHGs followed by Neelachal Gramya Bank of 8,520 SHGs & Kalinga Gramya Bank of 4,845 SHGs. Out of 30,987

SHGs financed by RRBs in 2009-10 from the total credit linked of 1,17,226 SHGs, Utkal Gramya Bank disbursed loan to the highest of 13,540 numbers of SHGs followed by Kalinga Gramya Bank of 9,238 SHGs & Baitarani Gramya Bank of 4,284 SHGs.

Out of 31,284 SHGs financed by RRBs in 2010-11 from the total credit linked of 71,843 SHGs, Utkal Gramya Bank disbursed loan to the highest of 12,811 followed by Kalinga Gramya Bank of 9,297 SHGs & Neelachal Gramya Bank of 4,535 SHGs.

During 2011-12, out of total credit linked of 49,831 SHGs, RRBs financed 20,068 SHGs of which Utkal Gramya Bank disbursed

loan to the highest of 10,194 SHGs followed by Kalinga Gramya Bank of 7,345 SHGs & Neelachal Gramya Bank of 2,223 SHGs. Rushikulya Gramya Bank disbursed loan to the lowest number of 520 SHGs in 2007-08, 2,144 SHGs in 2008-09, 544 SHGs in

2009-10, 801 SHGs in 2010-11 & 306 SHGs 2011-12. During 2012-13 from the total credit linked of 47,676 SHGs, RRBs financed 26,483 SHGs of which Utkal Gramya Bank disbursed loan to the highest of 16,426 SHGs followed by Odisha Gramya

Bank of 10,057 SHGs. During 2013-14 from the total credit linked of 53,699 SHGs, RRBs financed 22,208 SHGs of which Odisha Gramya Bank disbursed loan to the highest of 15,675 followed by Utkal Gramya Bank of 6,533 SHGs. Out of total credit

linked SHGs in Odisha by all the agencies, RRBs contributed 32.12% in 2007-08, 34.49 % in 2008-09, 26.43% in 2009-10, 43.54% in 2010-11, 40.27% in 2011-12, 55.55% in 2012-13 and 41.36% in 2013-14.The RRBs financed to 1,96,512 SHGs out of

total of 5,37,252 SHGs from 2007-08 to 2013-14 with a percentage of 36.58%.

Progress of Amount of Bank Loan Disbursed by RRBs to SHGs in Odisha

The amount of bank loans disbursed to SHGs in Odisha by RRBs is given in Table-2. From Table-2, it is observed that, out of Rs.

18,077.25 lakh financed by RRBs in 2007-08 from the total loan of Rs. 56,704.09 lakh to SHGs, Utkal Gramya Bank disbursed loan to the highest amount of Rs. 10,571.46 lakh followed by Neelachal Gramya Bank of Rs. 2945.00 lakh & Kalinga Gramya

Bank of Rs. 2694.23 lakh. Out of Rs. 15,140.76 lakh financed by RRBs in 2008-09 from the total loan of Rs. 54,002.15 lakh to

SHGs, Utkal Gramya Bank disbursed loan to the highest amount of Rs. 5,974.40 lakh followed by Kalinga Gramya Bank of Rs. 2644.08 lakh & Neelachal Gramya Bank of Rs. 2395.00 lakh. Out of Rs. 18,904.84 lakh financed by RRBs in 2009-10 from the

total loan of Rs. 66,666.40 lakh to SHGs, Utkal Gramya Bank disbursed loan to the highest amount of Rs. 7,188.44 lakh followed by Kalinga Gramya Bank of Rs. 6674.15 lakh & Baitarani Gramya Bank of Rs. 2332.00 lakh. During 2010-11 out of total

disbursement of loan of Rs. 57,492.17 lakh to SHGs, RRBs disbursed loan of Rs. 21,270.04 lakh of which Kalinga Gramya Bank disbursed loan to the highest amount of Rs. 7,365.15 lakh followed by Utkal Gramya Bank of Rs. 5,918.70 lakh & Baitarani

Gramya Bank of Rs. 4,626.85 lakh. Rushikulya Gramya Bank disbursed loan to the lowest amount of Rs. 491.68 lakh in 2007-08, Rs. 1778.72 lakh in 2008-09, Rs. 879.14 lakh in 2009-10 & Rs. 1,061.22 lakh in 2010-11. During 2011-12, Kalinga Gramya Bank

disbursed loan to the highest amount of Rs. 8,908.99 lakh followed by Utkal Gramya Bank of Rs. 6,228.70 lakh & Rushikulya

Gramya Bank of Rs. 1,456.00 lakh out of Rs. 17,832.41 lakh financed by RRBs from the total loan of Rs. 54,097.58 lakh to SHGs. Neelachal Gramya Bank disbursed loan to the lowest amount of Rs. 1,238.72 lakh in 2011-12. During 2012-13, Utkal

Gramya Bank disbursed loan to the highest amount of Rs. 11,401.50 lakh followed by Odisha Gramya Bank of Rs. 9,778.43 lakh out of Rs. 21,179.93 lakh financed by RRBs from the total loan of Rs. 47,328.10 lakh to SHGs. During 2013-14, Odisha Gramya

Bank disbursed loan to the highest amount of Rs. 18,453.24 lakh followed by Utkal Gramya Bank of Rs. 4,977.11 lakh out of Rs. 23,430.35 lakh financed by RRBs from the total loan of Rs. 50,485.83 lakh to SHGs. In terms of amount of loan to SHGs by all

the agencies, RRBs contributed 31.88% in 2007-08, 28.04% in 2008-09, 28.36% in 2009-10, 37.00% in 2010-11, 32.96% in

2011-12, 44.75% in 2012-13 and 46.41% in 2013-14.The total bank loan of Rs. 1,35,835.58 lakh was financed by RRBs out of total of Rs. 3,86,776.32 lakh from 2007-08 to 2013-14 with a percentage of 35.12%.

Progress of Outstanding Bank Loans of RRBs to number of SHGs in Odisha

The progress in terms of bank loan outstanding against number of SHGs by RRBs in Odisha is given in Table-3. From Table-3, it

is observed that, out of 1,06,943 SHGs with outstanding bank loan as on 31st March,2008, Utkal Gramya Bank was having highest numbers of 70,251 SHGs followed by Neelachal Gramya Bank with 18,304 SHGs & Kalinga Gramya Bank with 9,276 SHGs.

Out of 1,38,771 SHGs with outstanding bank loan as on 31st March,2009, Utkal Gramya Bank was having highest numbers of

84,430 SHGs followed by Neelachal Gramya Bank with 26,824 SHGs & Kalinga Gramya Bank with 11,518 SHGs. As on 31st March, 2010 out of 1,35,055 SHGs with outstanding bank loan, Utkal Gramya Bank was having highest numbers of 74,128 SHGs





followed by Neelachal Gramya Bank with 30,205 SHGs & Kalinga Gramya Bank with 16,338 SHGs. As on 31st March,2011, out of 1,52,875 SHGs with outstanding bank loan, Utkal Gramya Bankwas having highest numbers of 85,025 SHGs followed by

Neelachal Gramya Bank with 34,612 SHGs & Kalinga Gramya Bank with 20,081 SHGs. Out of 1,39,064 SHGs with outstanding

bank loan as on 31st March,2012, Utkal Gramya Bank was having highest numbers of 83,522 SHGs followed by Neelachal Gramya Bank with 34,865 SHGs & Kalinga Gramya Bank with 19,132 SHGs. Rushikulya Gramya Bank was having lowest

number of 1,513 SHGs, 6,650 SHGs, 2,062 SHGs, 2,166 SHGs and 1,545 SHGs as on 31st March, 2008, 31st March, 2009, 31st March, 2010, 31st March, 2011 and 31st March, 2012 respectively. As on 31st March, 2013, out of 1,19,409 SHGs with

outstanding bank loan, Odisha Gramya Bank was having highest numbers of 64,125 SHGs followed by Utkal Gramya Bank with 55,284 SHGs and as on 31st March,2014, out of 99,090 SHGs with outstanding bank loan, Odisha Gramya Bank was having

highest numbers of 69,088 SHGs followed by Utkal Gramya Bank with 30,002 SHGs. In terms of number of SHGs with

outstanding loan of all the agencies in Odisha, RRBs contributed 37.76% as on 31st March, 2008 from total of 2,83,202 SHGs, 41.32% as on 31st March, 2009 from total of 3,35,811 SHGs, 36.24% as on 31st March, 2010 from total of 3,72,646 SHGs,

45.63% as on 31st March, 2011 from total of 3,35,041 SHGs, 44.19% as on 31st March, 2012 from total of 3,14,669 SHGs, 42.96% as on 31st March, 2013 from total of 2,77,954 SHGs and 39.71% as on 31st March, 2014 from total of 2,49,550

SHGs.The total contribution of RRBs in terms of number of SHGs with outstanding bank loan is 8,91,207 SHGs out of 21,68,873 SHGs by all agencies with a share of 41.09% from 2007-08 to 2013-14.

Progress of Amount of Outstanding Bank Loans of RRBs to SHGs in Odisha

The progress in terms of amount of bank loan outstanding against SHGs by RRBs is given in Table-4. From Table-4, it is observed that as on 31st March, 2008, out of outstanding bank loan of Rs. 41,902.57 lakh of RRBs from the total of Rs.

1,21,707.35 lakh of all agencies, Utkal Gramya Bank was maintaining highest amount of Rs. 29,511.47 lakh followed by Kalinga Gramya Bank of Rs. 5,779.81 lakh & Baitarani Gramya Bank of Rs. 2,562.89 lakh. As on 31st March, 2009, out of outstanding

bank loan of Rs. 51,236.18 lakh of RRBs from the total of Rs. 1,32,428.42 lakh of all agencies, Utkal Gramya Bank was having highest amount of Rs. 33,166.36 lakh followed by Kalinga Gramya Bank of Rs. 6,721.04 lakh & Baitarani Gramya Bank of Rs.

5,234.47 lakh. The Utkal Gramya Bank was maintaining highest amount of outstanding bank loan of Rs. 15,182.39 lakh followed by Kalinga Gramya Bank of Rs. 11,525.12 lakh & Baitarani Gramya Bank of Rs. 8,565.00 lakh out of outstanding bank loan of

Rs. 40,675.26 lakh of RRBs from the total of Rs. 1,51,608.49 lakh of all agencies as on 31st March, 2010. The outstanding bank

loan of Rs. 50,899.56 lakh of RRBs from the total of Rs. 1,57,948.10 lakh of all agencies as on 31st March, 2011 consisted of highest amount of Rs. 18,806.63 lakh of Utkal Gramya Bank followed by Rs. 15,669.48 lakh of Kalinga Gramya Bank & Rs.

9,934.46 lakh of Baitarani Gramya Bank. The outstanding bank loan of Rs. 45,160.33 lakh of RRBs from the total of Rs. 1,65,338.66 lakh of all agencies as on 31st March, 2012 consisted of highest amount of Rs. 18,489.75 lakh of Utkal Gramya Bank

followed by Rs. 17,787.64 lakh of Kalinga Gramya Bank & Rs. 4,818.85 lakh of Neelachal Gramya Bank. The Rushikulya Gramya Bank was maintaining lowest amount of outstanding bank loan of Rs. 1,964.52 lakh, Rs. 2,990.90 lakh, Rs. 2,170.61

lakh, Rs. 2,173.51 lakh & Rs. 4,064.09 lakh as on 31st March, 2008, 31st March, 2009, 31st March, 2010, 31st March, 2011 and 31st

March, 2012 respectively. The outstanding bank loan of Rs. 65,507.38 lakh of RRBs from the total of Rs. 1,79,675.86 lakh of all agencies as on 31st March, 2013 consisted of amount of Rs. 40,880.90 lakh of Utkal Gramya Bank and Rs. 24,626.48 lakh of

Odisha Gramya Bank. The outstanding bank loan of Rs. 53,923.23 lakh of RRBs from the total of Rs. 1,54,317.90 lakh of all agencies as on 31st March, 2014 comprised of Rs. 29,448.22 lakh of Odisha Gramya Bank and Rs. 24,475.01 lakh of Utkal

Gramya Bank. In terms of amount of outstanding loan to SHGs by all the agencies, RRBs contributed 34.43% in 2007-08, 38.69% in 2008-09, 26.83% in 2009-10, 32.23% in 2010-11, 27.31% in 2011-12, 36.46% in 2012-13 and 34.94% in 2013-14.The RRBs

were maintaining outstanding bank loan of Rs. 3,49,304.51 lakh out of total Rs. 10,63,024.78 lakh with a percentage of 32.86% from 2007-08 to 2013-14.

Progress of Number of Savings Account of SHGs with RRBs in Odisha

The number of SHGs maintaining saving bank account with RRBs is given in Table-5. From Table-5, it is observed that, out of 1,49,090 SHGs maintaining saving bank account with RRBs from the total of 3,91,540 SHGs as on 31st March, 2008, Utkal

Gramya Bank was maintaining highest number of saving account of 76,349 SHGs followed by Neelachal Gramya Bank of 24,304 SHGs & Kalinga Gramya Bank of 19,084 SHGs. Out of 1,64,562 SHGs with saving bank account with RRBs from the total of

4,41,960 SHGs as on 31st March,2009, Utkal Gramya Bank was maintaining highest numbers of 86,471 SHGs followed by

Neelachal Gramya Bank of 27,835 SHGs & Kalinga Gramya Bank of 19,767 SHGs. The total of 1,85,309 SHGs maintaining saving account of RRBs from the total of 5,03,172 SHGs as on 31st March, 2010 consisted of highest number of 89,912 SHGs of

Utkal Gramya Bank followed by 30,517 SHGs of Neelachal Gramya Bank and 26,689 of Kalinga Gramya Bank. The total of 1,99,679 SHGs maintaining saving account with RRBs from the total of 5,21,152 SHGs as on 31st March, 2011 comprised of

highest number of 93,034 SHGs of Utkal Gramya Bank followed by 36,364 of Neelachal Gramya Bank and 35,087 of Kalinga Gramya Bank. Rushikulya Gramya Bank was maintaining the lowest number of SHGs of 12,645 as on 31st March, 2008, 12,841

as on 31st March, 2009 and 17,826 as on 31st March, 2010. Baitarani Gramya Bank was maintaining lowest number of 16,329 SHGs with saving bank account as on 31st March, 2011. Out of 2,26,745 SHGs with saving bank account with RRBs from the

total of 5,40,029 SHGs as on 31st March,2012, Utkal Gramya Bank was maintaining highest numbers of 94,297 SHGs followed

by Rushikulya Gramya Bank of 47,858 SHGs, Neelachal Gramya Bank of 44,328 SHGs & Kalinga Gramya Bank of 40,262 SHGs. The total of 2,42,789 SHGs maintaining saving account with RRBs from the total of 5,22,837 SHGs as on 31st March,





2013 comprised of highest number of 1,30,125 SHGs of Utkal Gramya Bank and 1,12,664 SHGs of Odisha Gramya Bank. The total of 2,63,852 SHGs maintaining saving account with RRBs from the total of 5,17,391 SHGs as on 31st March, 2014 consisted

of highest number of 1,36,178 SHGs of Utkal Gramya Bank and 1,27,674 of Odisha Gramya Bank. In terms of number of SHGs

having saving account with all agencies, RRBs contributed 38.08% in 2007-08, 37.23% in 2008-09, 36.83% in 2009-10, 38.31% in 2010-11, 41.99% in 2011-12, 46.44% in 2012-13 and 51.00% in 2013-14.The RRBs were maintaining saving account of

14,32,026 SHGs out of total of 34,38,081 SHGs with a percentage of 41.65% from 2007-08 to 2013-14. Progress of Amount of Savings Account of SHGs with RRBs in Odisha

The progress in amount of savings of SHGs with RRBs is given in Table-6. From Table-6, it is found that, as on 31st March, 2008,

out of total savings of Rs. 10,918.71 lakh of RRBs from the total savings of Rs. 25,994.44 lakh, Utkal Gramya Bank was having highest amount of Rs. 6,404.86 lakh followed by Kalinga Gramya Bank of Rs. 1,615.24 lakh, Neelachal Gramya Bank of Rs.

1,198.67 lakh & Baitarani Gramya Bank of Rs. 1,045.12 lakh. As on 31st March, 2009, out of savings balance of Rs. 14,164.95 lakh of RRBs from the total savings of Rs. 26,948.71 lakh, Utkal Gramya Bank was having highest amount of Rs. 7,806.97 lakh

followed by Neelachal Gramya Bank of Rs. 2,045.00 lakh, Kalinga Gramya Bank of Rs. 1,702.44 lakh & Baitarani Gramya Bank of Rs. 1,619.16 lakh. The Utkal Gramya Bank was maintaining highest amount of saving amount of Rs. 10,567.48 lakh followed

by Neelachal Gramya Bank of Rs. 2,746.89 lakh, Baitarani Gramya Bank of Rs. 2,324.35 lakh & Kalinga Gramya Bank of Rs. 1,901.14 lakh as on 31st March, 2010 out of saving amount of Rs. 18,906.09 lakh of RRBs from the total savings of Rs. 36,473.50

lakh. As on 31st March, 2011, the saving amount of Rs. 19,794.78 lakh of RRBs from the total savings of Rs. 35,354.72 lakh

consisted of highest amount of Rs. 10,944.52 lakh of Utkal Gramya Bank followed by Rs. 2,611.33 lakh of Baitarani Gramya Bank, Rs. 2,428.45 lakh of Neelachal Gramya Bank & Rs. 1,942.05 lakh of Rushikulya Gramya Bank. As on 31st March, 2012,

out of savings of Rs. 17,948.26 lakh of RRBs from the total savings of Rs. 36,136.41 lakh, Utkal Gramya Bank was having highest amount of Rs. 11,207.30 lakh followed by Neelachal Gramya Bank of Rs. 2,767.82 lakh & Kalinga Gramya Bank of Rs.

2,162.14 lakh. The Rushikulya Gramya Bank was maintaining lowest amount of saving amount of Rs. 654.82 lakh, Rs. 991.38 lakh, Rs. 1,366.23 lakh & Rs. 1,811.00 lakh as on 31st March, 2008, 31st March, 2009, 31st March, 2010 and 31st March, 2012

respectively & Kalinga Gramya Bank was having lowest amount of Rs. 1,868.43 lakh as on 31st March, 2011.The saving amount of Rs. 19431.46 lakh of RRBs from the total savings of Rs. 41,827.81 lakh as on 31st March, 2013 consisted of amount of Rs.

10877.25 lakh of Utkal Gramya Bank and Rs. 8,554.21 lakh of Odisha Gramya Bank. As on 31st March, 2014, the saving amount

of Rs. 19,169.49 lakh of RRBs from the total savings of Rs. 45,733.95 lakh comprised of Rs. 10,241.37 lakh of Utkal Gramya Bank and Rs. 8,928.12 lakh of Odisha Gramya Bank. In terms of amount of saving of SHGs by all the agencies, RRBs contributed

42.00% in 2007-08, 52.56% in 2008-09, 51.84% in 2009-10, 55.99% in 2010-11, 49.67% in 2011-12, 46.46% in 2012-13 and 41.92% in 2013-14. The RRBs were having saving account balance of Rs. 1,20,333.74 lakh out of total of Rs. 2,48,469.54 lakh

with a percentage of 48.43% from 2007-08 to 2013-14. CONCLUSION

The SHG-Bank linkage programme by Regional Rural Banks in Odisha has been reviewed. It is observed that, out of total saving

linked SHGs, the share of RRBs is 41.65% in terms of number of SHGs and 48.43% in terms of amount of saving of SHGs in Odisha. The share of RRBs in credit linked SHGs is 36.58% in terms of number of SHGs and 35.12% in terms of amount of loan

disbursed to SHGs in Odisha. The bank linkage of SHGs in terms of loan outstanding is 41.09% for number of SHGs with Outstanding loan and 32.86% for amount of loan outstanding against SHGs in Odisha. The RRBs have been playing a very

remarkable role in Self Help Group Bank linkage programme in Odisha. The RRBs have contributed to give due preference to the micro credit scheme and encourage in the formation and sustainability of Self Help Groups. The RRBs should strengthen effective

credit administration by way of evaluation of credit, observing the progress of loans and mechanism for recovery of loan. The

RRBs may relax their procedure for lending and make them easier for village borrowers. The efforts made by RRBs in branch expansion, deposit mobilization and credit deployment in weaker section of rural areas are appreciable.

REFERENCES

1. Annual Reports of NABARD.

2. Bisoyi, P. L., & Nilesh, Dangat. (2013, October). Performance Evaluation of Rushikulya Gramya Bank of Odisha State with reference to Agricultural Development (2003-2012). International Journal of Research in Management, Economics and Commerce, 3(10), 32-45.

3. Retrieved from http://www.nabard.org

4. Retrieved from http://www.rbi.org.in

5. Misra, Biswa Swarup. (2006). The Performance of Regional Rural Banks (RRBs) in India: Has Past Anything to Suggest for Future? Reserve Bank of India Occasional Papers, 27(1 & 2), 89-118.

6. Soni, Anil Kumar, & Kapre, Abhay. A study of status of Regional Rural Banks in India. ABHINAV- National Monthly Referred Journal of Research in Commerce & Management, 2(2), 1-16.

http://www.nabard.org/

http://www.rbi.org.in/





7. Status of Microfinance in India for the year 2007-08 to 2013-14. NABARD.

8. Subudhi, R. N., & Ram, Jitendra K. (2012). Operational efficiency of Regional Rural Banks and Other Commercial Banks of Odisha & India: A comparative study. Arabian Journal of Business and Management Review (Nigeria

Chapter), 1(1), 50-64.

9. Retrieved from http://shodhganga.inflibnet.ac.in/bitstream/10603/20365/10/10_chapter%202.pdf

10. Retrieved from http://www.moneycontrol.com/annual-report/statebankindia/directors-report/SBI

11. Retrieved from http://en.wikipedia.org/wiki/Regional_Rural_bank

12. Retrieved from http://indusedu.org/IJRMEC/Oct2013(pdf)/4.pdf

13. Retrieved from https://en.wikipedia.org/wiki/Regional_Rural_Bank

14. Retrieved from https://www.sbp.co.in/aboutus/Balance-sheet-March-31-2011.pdf

APPENDIX

Table-1: Progress under Microfinance-Loan Disbursed to SHGs (in Number) in Odisha by Regional Rural Banks

Name of Bank Number of SHGs

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 3485 3919 4284 3840

15528

Kalinga Gramya Bank 4819 4845 9238 9297 7345

35544

Neelachal Gramya Bank 6641 8520 3381 4535 2223

25300

Odisha Gramya Bank

10057 15675 25732

Rushikulya Gramya Bank 520 2144 544 801 306

4315

Utkal Gramya Bank 17790 12799 13540 12811 10194 16426 6533 90093

Total of All RRBs 33255 32227 30987 31284 20068 26483 22208 196512

Total by All Agencies

including RRBs 103544 93433 117226 71843 49831 47676 53699 537252

% of Share of RRBs out of Total 32.12 34.49 26.43 43.54 40.27 55.55 41.36 36.58

Sources: Status of Microfinance in India by NABARD

Table-2: Progress under Microfinance-Loan Disbursed to SHGs (in Amount) in Odisha by Regional Rural Banks

Name of Bank Amount in Rs. Lakh

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 1374.88 2348.56 2332.00 4626.85

10682.29

Kalinga Gramya Bank 2694.23 2644.08 6674.15 7365.15 8908.99

28286.60

Neelachal Gramya Bank 2945.00 2395.00 1831.11 2298.12 1238.72

10707.95

Odisha Gramya Bank

9778.43 18453.24 28231.67

Rushikulya Gramya Bank 491.68 1778.72 879.14 1061.22 1456.00

5666.76

Utkal Gramya Bank 10571.46 5974.40 7188.44 5918.70 6228.70 11401.50 4977.11 52260.31

Total of All RRBs 18077.25 15140.76 18904.84 21270.04 17832.41 21179.93 23430.35 135835.58


including RRBs 56704.09 54002.15 66666.40 57492.17 54097.58 47328.10 50485.83 386776.32

% of Share of RRBs 31.88 28.04 28.36 37.00 32.96 44.75 46.41 35.12


Table-3: Progress under Microfinance- Bank Loans of RRBs Outstanding against SHGs (in Number) of Odisha


2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 7599 9349 12322 10991 40261

Kalinga Gramya Bank 9276 11518 16338 20081 19132 76345

Neelachal Gramya Bank 18304 26824 30205 34612 34865 144810

http://shodhganga.inflibnet.ac.in/bitstream/10603/20365/10/10_chapter%202.pdf

http://www.moneycontrol.com/annual-report/statebankindia/directors-report/SBI

http://en.wikipedia.org/wiki/Regional_Rural_bank

http://indusedu.org/IJRMEC/Oct2013(pdf)/4.pdf

https://en.wikipedia.org/wiki/Regional_Rural_Bank

https://www.sbp.co.in/aboutus/Balance-sheet-March-31-2011.pdf





Odisha Gramya Bank 64125 69088 133213

Rushikulya Gramya Bank 1513 6650 2062 2166 1545 13936


Total of All RRBs 106943 138771 135055 152875 139064 119409 99090 891207


including RRBs

283202 335811 372646 335041 314669 277954 249550 2168873

% of Share of RRBs 37.76 41.32 36.24 45.63 44.19 42.96 39.71 41.09


Table-4: Progress under Microfinance- Bank Loans of RRBs Outstanding against SHGs (in Amount) of Odisha


2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 2562.89 5234.47 8565.00 9934.46 26296.82

Kalinga Gramya Bank 5779.81 6721.04 11525.12 15669.48 17787.64 57483.09

Neelachal Gramya Bank 2083.88 3123.41 3232.14 4315.48 4818.85 17573.76

Odisha Gramya Bank 24626.48 29448.22 54074.70

Rushikulya Gramya Bank 1964.52 2990.90 2170.61 2173.51 4064.09 13363.63


Total of All RRBs 41902.57 51236.18 40675.26 50899.56 45160.33 65507.38 53923.23 349304.51


including RRBs

121707.35 132428.42 151608.49 157948.10 165338.66 179675.86 154317.90 1063024.78

% of Share of RRBs 34.43 38.69 26.83 32.23 27.31 36.46 34.94 32.86


Table-5: Progress under Microfinance- Savings of SHGs (in Number) with RRBs in Odisha


2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 16708 17648 20365 16329 71050

Kalinga Gramya Bank 19084 19767 26689 35087 40262 140889

Neelachal Gramya Bank 24304 27835 30517 36364 44328 163348

Odisha Gramya Bank 112664 127674 240338

Rushikulya Gramya Bank 12645 12841 17826 18865 47858 110035


Total of All RRBs 149090 164562 185309 199679 226745 242789 263852 1432026


including RRBs

391540 441960 503172 521152 540029 522837 517391 3438081

% of Share of RRBs 38.08 37.23 36.83 38.31 41.99 46.44 51.00 41.65


Table-6: Progress under Microfinance- Savings of SHGs (in Amount) with RRBs in Odisha


2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total

Baitarani Gramya Bank 1045.12 1619.16 2324.35 2611.33 7599.96

Kalinga Gramya Bank 1615.24 1702.44 1901.14 1868.43 2162.14 9249.39

Neelachal Gramya Bank 1198.67 2045.00 2746.89 2428.45 2767.82 11186.83

Odisha Gramya Bank 8554.21 8928.12 17482.33

Rushikulya Gramya Bank 654.82 991.38 1366.23 1942.05 1811.00 6765.48


Total of All RRBs 10918.71 14164.95 18906.09 19794.78 17948.26 19431.46 19169.49 120333.74

Total by All Agencies including RRBs

25994.44 26948.71 36473.50 35354.72 36136.41 41827.81 45733.95 248469.54

% of Share of RRBs 42.00 52.56 51.84 55.99 49.67 46.46 41.92 48.43


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