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  • 1. Do the Benefits of Development of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level - An Experimental Evidence in the rural areas of Rasulpur of Burdwan District, West Bengal NAME: RAHUL GUPTA ROLL NO: 2012110 BATCH: 2012-14
  • 2. SUMMER INTERNSHIP COMPLETION CERTIFICATE SIGNED BY INDUSTRY GUIDE This is to certify that Summer Project Report on ―Do the Benefits of Development of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level - An Experimental Evidence in the rural areas of Rasulpur of Burdwan District, West Bengal " prepared by ―RAHUL GUPTA” Roll No. 2012110 of PGDBM 2012-2014 Batch is his/her genuine effort under my guidance and supervision. His/hers internship commenced on __________________ (Date) & was completed on___________________ (Date). The student has successfully discharged all duties assigned to him/her during his internship with the organization. His conduct was found to be good. Signatures of the Industry Guide Name of the Industry Guide: A.K.MONDAL Designation of the Industry Guide: BRANCH MANAGER OF RASULPUR BRANCH, PASCHIM BANGA GRAMIN BANK Page -2
  • 3. INFORMATION SHEET NAME OF THE COMPANY: PASCHIM BANGA GRAMIN BANK ADDRESS OF THE COMPANY: RASULPUR BAZAR, BURDWAN, WB PHONE NO. OF THE COMPANY: 09775736544 DATE OF INTERNSHIP COMMENCEMENT: 01/05/2013 DATE OF INTERNSHIP COMPLETION: 10/07/2013 NAME OF THE INDUSTRY GUIDE: A.K.MONDAL DESIGNATION OF THE INDUSTRY GUIDE: BRANCH MANAGER STUDENT’S NAME: RAHUL GUPTA STUDENT’S ROLL NUMBER: 2012110 STUDENT’S E-MAIL ID: rahulgupta238@gmail.com STUDENT’S MOBILE/ RESIDENCE NUMBER: 08800577370 Page -3
  • 4. CERTIFICATE OF COMPLETION DULY SIGNED BY THE FACULTY GUIDE This is to certify that Summer Project Report on ―Do the Benefits of Development of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level - An Experimental Evidence in the rural areas of Rasulpur of Burdwan District, West Bengal ―prepared by "RAHUL GUPTA" Roll No. "2012110" of PGDBM 2012-14 Batch is his/her genuine effort under my guidance and supervision. Signatures of the Faculty Guide Name of the Faculty Guide RITU SRIVASTAVA Signatures of the Student Name of the Student RAHUL GUPTA ======================================================== Page -4
  • 5. Do the Benefits of Development of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level - An Experimental Evidence in the rural areas of Rasulpur of Burdwan District, West Bengal A project report submitted to NIILM-CMS in partial fulfillment of requirement for summer internship Program Supervisor: Ms. Ritu Srivastava Faculty Member of NIILM-CMS Submitted by: RAHUL GUPTA Roll no:- 2012110 Page -5
  • 6. Acknowledgement I would like to convey my sincere thanks to Mrs. Ritu Srivastava, Faculty in charge of NIILM-CMS for her continuous inspiration. I wish to take this opportunity to express my deep sense of gratitude to my j supervisor Mrs. Ritu Srivastava, faculty members in NIILM-CMS for their precious guidance and help to complete my project report successfully. I would like to convey my sincere thanks to RASULPUR BRANCH Mr. A.K.MONDAL, for his valuable guidance and suggestion. Last but not least it is my foremost duty to thank all my respondents, who help me to collect necessary information during the field survey. I also express our gratitude to our sincere library staff who has provided us with study material time to time. We owe debt to my family, colleagues and friends who are in some or other way responsible for the completion of this project. ROLL NO: - 2012110 Page -6
  • 7. Self-Declaration I hereby declare that this project report entitled ―Do the Benefits of Development of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level? : An Empirical study through Self Help Group (SHG) -‖ has been prepared by me during the year 2012- 2013 under the supervision of PASCHIM BANGA GRAMIN BANK Linkage in the rural areas of RASULPUR IN BURDWAN District, WEST BENGAL Page -7
  • 8. Table of Contents Page no Executive Summary Chapter- I: Introduction Chapter-2: Bank Profile Chapter-3: Objectives and Hypotheses 3.1 Primary Objective 3.2 Specific Objectives 3.3 Hypotheses Chapter-4: Literature Review Chapter- 5: Data Collection and Methodology Chapter- 6: Analysis and Findings 6.1General information of the SHG members 6.2 Economic activities relating to occupation of the SHG Members 6.3 Literacy level of the SHG members 6.4 Impact of Microfinance Programs 6.4.1 Average annual personal income (Rs.) of the SHG Members 6.4.2 Average annual household income ( Rs.) of the SHG Members 6.4.3 Average annual household expenditures (Rs.) of SHG Members 6.4.4 Average annual household savings (Rs.) of SHG Members 6.4.5 Social impact in terms of standard of living of the 09 15 17 20 20 20 20 22 25 27 27 29 30 32 32 33 34 35 36 SHG members as well as their families between Pre & Post- SHG Situation Chapter-7: Recommendation Chapter-8: Conclusion Chapter-9: Annexure-I: Bibliography Annexure-II: Sample Questionnaire 38 40 42 42 44 Page -8
  • 9. Executive Summary The main objective of the study is to assess the impact of microfinance programs through SHG PASHIM GRAMIN BANK Linkage on the socio-economic empowerment of the poor people in the rural areas RASULPUR of BURDWAN District, WEST BENGAL. Specific Objectives: 1. To assess the impact of microfinance programs on the economic empowerment (in terms of increment of income, expenditures, saving) of the SHG members as well as their families between Pre and Post-SHG situations; 2. To assess the impact of SHG survey to develop the day to day life slandered. 3. To assess the impact of microfinance programmes on the social empowerment (in terms of upliftment of standard of living) of the SHG members as well as their families between Pre and Post-SHG situations; Hypotheses: : There is no variation in average annual personal income of the SHG members between Pre and Post-SHG situations; : There is no variation in average annual household income of the SHG members between pre and post – SHG situations; Page -9
  • 10. : There is no variation in average annual household expenditures of the SHG members between pre and post – SHG situations; : There is no variation in average annual household savings of the SHG members between pre and post – SHG situations; : There is no relationship of various indicators of standard of living of the SHG members as well as their families between Pre and Post – SHG situations; This study is based on both primary and secondary data. The primary data has been collected from the field survey in the different rural areas of RASULPUR in BURDWAN District, WEST BENGAL. For this purpose both open-ended and close-ended questionnaires have been prepared to collect necessary information as well as to justify the socio-economic empowerment of the SHG members as well as their families. On the other hand, secondary data relating to general information about the selected SHGs has been collected from the internal records of the Rasulpur Branch, Paschim Banga Gramin Bank Beside these few information has also been collected from the internet, journals, magazines, newspapers and books to gather knowledge about microfinance programs in India through SHG-Bank Linkage and its impact on socioeconomic empowerment of the poor people. In this study Two Stage (Mixed) Sampling Technique has been used for the collection of primary data as well as for testing hypothesis between Pre and Post-SHG situations. P a g e - 10
  • 11. The RASULPUR Branch of PASHIM BANGA GRAMIN BANK, BURDWAN District has been able to form 300 SHGs (as on 30th June, 2011). In the first stage out of the 300 SHGs, 100 SHGs have been selected on the basis of their loan repayment performance. In the second stage out of 100 SHGs, one SHG member from each group has been selected randomly in this study. The collected data has been summarized in a ‘Master Sheet’ in such a systematic manner that can fulfill the objectives of the study. However the summarized data has been analyzed with the help of few mathematical and statistical tools like Percentage, Mean, Standard Deviation (SD), Coefficient of Variation (CV), Pearson Correlation Coefficient etc. by using the software (Minitab 15.0). Major Findings  The economic activities relating to occupation of the SHG members in the pre-SHG situation were found that 8% members were employed and the rest 92% were unemployed. But on the contrary the economic activities relating to occupation of the SHG members in the post-SHG situation are found that 98% members are employed and the rest 2% are unemployed. Here is the Positive Impact of Microfinance, because almost all members are engaged in economic activities to generate personal income as well as their families.  Out of 100 group members in Pre-SHG situation 65% were illiterate and 35% were literate, among which 20% passed primary standard and P a g e - 11
  • 12. 15% passed secondary standard. On the other side in the Post-SHG situation out of 65 of illiterate members of pre-SHG,15% remains illiterate and the 75% members have been able to read and write and 10 % can do sign only. Here is the Positive Impact of Microfinance, because microfinance programme has changed the scenario of Literacy Level among the SHG Members.  The mean average annual personal income of the SHG members (Rs.36852) in the Post-SHG is higher than the Pre-SHG (Rs.33612).  The high inequality of average annual personal income distribution has been found for both Pre -SHG (C.V = 22.28) and Post-SHG (C.V = 16).  The high variation in average annual personal income distribution has been found for the SHG members between Pre and post-SHG situations.  The mean average annual household income of the SHG Members (Rs.76788) in the Post-SHG is higher than the Pre-SHG (Rs.71040).  The high inequality of average annual household income distribution has been found for Pre -SHG (C.V = 13.80) but moderate inequality has been found in the Post-SHG (C.V = 8.65). P a g e - 12
  • 13.  The high variation in average annual household income distribution has been found for the SHG members between Pre and post-SHG situations.  The mean average annual household expenditures of the SHG Members (Rs.71448) in the Post-SHG is higher than the Pre-SHG (Rs.68076).  The high inequality of average annual household expenditures has been found for Pre -SHG (C.V = 14.35) and but moderate inequality has been found for Post-SHG (C.V = 8.21).  The high variation in average annual household expenditures has been found for the SHG members between Pre and post-SHG situations.  The mean average annual household savings of the SHG Members (Rs.5340) in the Post-SHG is higher than the Pre-SHG (Rs.2964).  The high inequality of average annual household savings has been found for both Pre -SHG (C.V = 20.31) and Post-SHG (C.V = 21.52).  The high variation in average annual household savings has been found for the SHG members between Pre and post-SHG situations.  The Correlation between the use of own Deep Tubewell in the PreSHG and the improvement from the other sources to own Deep Tubewell in the Post-SHG shows a high positive correlation (r = 0.798). P a g e - 13
  • 14.  The Correlation ( r = 0.396) between the better earthen housing condition in Pre-SHG and the improvement to better condition in PostSHG shows a moderate positive correlation.  The Correlation between Personal Lavatory with Bath Room in Pre and Post-SHG situations indicate a high positive correlation (r = 0.606).  The Correlation of better dress quality of the members between Pre and Post-SHG situations shows a high positive correlation (r = 0.588).  The Correlation of watching the TV Serial / Cinema between Pre and Post-SHG situations indicate a high positive correlation (r = 0.511). P a g e - 14
  • 15. Chapter - 1 Introduction The Microfinance Programmes through SHG (Self Help Group) – Bank Linkage have been launched by the Government of India as a strategy of poverty alleviation and rural development. The National Bank for Agriculture and Rural Development (NABARD) has made pioneering efforts which is vested with the task of framing appropriate policy for rural credit, provision of technical assistance backed liquidity support to banks, supervision of rural credit institutions and other development initiatives. The emphasis is on improving the access of the poor to Microcredit. There is a basic difference between Microcredit and Microfinance. The microcredit caters to commercial needs of poor for enabling them to raise their income levels and to improve standard of living‖. Thus in microcredit more emphasis is given on loans, while microfinance also includes support services where people open up channels for thrift, market assistance, technical assistance, capacity building, insurance, social and cultural programs etc. So where microcredit is ‗only credit‘ there microfinance is ‗credit plus. The main theme of Microfinance Programs are that where the poor people do not have access to normal bank loans for income generating activities, Microfinance provides small loans to very poor people for self-employment purpose. It enables the poorest of the people, especially the women to generate income for them as well as for their families. P a g e - 15
  • 16. The SHGs is the basic constituent of microfinance programme in India. SHG is a group of 10 to 20 poor members and also women who hugely organize themselves for the eradication of poverty. The SHG is generally formed by a name. The group members agree to save regularly a very small amount of money (say Re.1 per day per member) and aggregate their savings into a fund known as ‗Corpus Fund‘ from which they can borrow up to 4:1 ratio (maximum loan amount is a multiple of the total funds deposited in the group account) as and when necessary for their income generating purpose .Such a group is linked with a bank, where the group maintains a saving account. Sometimes the group can withdraw the deposited amount from the saving account for their personal or family related purpose. The withdrawal is permitted by the bank if a resolution is drafted by the members in the group meeting. Group leaders and deputy group leaders mainly motivate the groups. Generally they maintain the meeting resolution, record books and register which act as coordinator between the group and a bank. . P a g e - 16
  • 17. Chapter - 2 . Profile of the Paschimbanga Gramin Bank Paschim Banga Gramin Bank is one of the leading Regional Rural Banks formed by amalgamation of three erstwhile Gramin Banks viz. Howrah Gramin Bank, Bardhaman Gramin Bank and Mayurakshi Gramin Bank as per Govt of India Notification No: 1/4/2006-RRB dated 26.02.2007. On amalgamation of erstwhile three Gramin Banks now termed/treated as transferor Banks, newly established Paschim Banga Gramin Bank has four districts viz. Howrah, Hooghly, Burdwan and Birbhum as its area of operation. Howrah, Hooghly and Burdwan districts traditionally have immense potential both for agriculture and industry, whereas Birbhum District is not so advanced in terms of agricultural activities and mostly has mono cropped land area. Revised and modified industrial policy at the State Level is accelerating the pace of Industrial Development in the aforesaid districts. Besides, introduction of non-traditional crop cultivation and multi-dimensional approach for rising food production arising out of new thrust areas in the agricultural policy, may contribute to upliftment of the economy of the aforesaid districts. P a g e - 17
  • 18. The region of Bengal is one of the most densely populated regions on earth, with a population density exceeding 900/km. Most of the Bengal region lies in the low-lying Ganges–Brahmaputra River Delta or Ganges Delta, the world's largest delta. In the southern part of the delta lies the Sundarbans— the world's largest mangrove forest and home of the Bengal tiger. Though the population of the region is mostly rural and agrarian, two megacities, Kolkata (previously Calcutta) and Dhaka (previously Dacca), are located in Bengal. The Bengal region is renowned for its rich literary and cultural heritage as well as its immense contribution to the socio-cultural uplift of Indian society in the form of the Bengal Renaissance, and revolutionary activities during the Indian independence movement. Remnants of Copper Age settlements in the Bengal region date back 4,300 years. After the arrival of Indo-Aryans, the kingdoms ofAnga, Vanga and Magadha were formed by the 10th century BC, located in the Bihar and Bengal regions. Magadha was one of the four main kingdoms of India at the time of Buddha and consisted of several Janapadas. One of the earliest foreign references to Bengal is the mention of a land named Gangaridai by the Greeks around 100 BC, located in an area in Bengal. From the 3rd to the 6th centuries AD, the kingdom of Magadha served as the seat of the Gupta Empire. P a g e - 18
  • 19. The first recorded independent king of Bengal was Shashanka, reigning around early 7th century. After a period of anarchy, the native Buddhist Pala Empire ruled the region for four hundred years, and expanded across much of the Indian subcontinent into Afghanistan during the reigns of Dharmapala and Devapala. The Pala dynasty was followed by the reign of the Hindu Saiva Sena dynasty. Islam made its first appearance in Bengal during the 12th century when Sufi missionaries arrived. Later, occasional Muslim raiders reinforced the process of conversion by building mosques, madrassas and Sufi Khanqah. Beginning in 1202 a military commander from the Delhi Sultanate, Bakhtiar Khilji, overran Bihar and Bengal as far east as Rangpur, Bogra and the Brahmaputra River. Although he failed to bring Bengal under his control, the expedition managed to defeat Lakshman Sen and his two sons moved to a place then called Vikramapur (present-day Munshiganj District), where their diminished dominion lasted until the late 13th century. P a g e - 19
  • 20. Chapter-3 Objectives and Hypotheses 3.1 Primary Objective: The main objective of the study is to assess the impact of microfinance programmes through SHG –Paschim Banga Gramin Bank Linkage on the socio-economic empowerment of the poor people in the rural areas RASULPUR of BURDWAN District, West Bengal. 3.2 Specific Objectives: 4. To assess the impact of microfinance programs on the economic empowerment (in terms of increment of income, expenditures, saving) of the SHG members as well as their families between Pre and Post-SHG situations; 5. To assess the impact of microfinance programs on the social empowerment (in terms of upliftment of standard of living) of the SHG members as well as their families between Pre and Post-SHG situations; 3.3 Hypotheses: : There is no variation in average annual personal income of the SHG members between Pre and Post-SHG situations; : There is no variation in average annual household income of the SHG members between pre and post – SHG situations; P a g e - 20
  • 21. : There is no variation in average annual household expenditures of the SHG members between pre and post – SHG situations; : There is no variation in average annual household savings of the SHG members between pre and post – SHG situations; : There is no relationship of various indicators of standard of living of the SHG members as well as their families between Pre and Post – SHG situations; P a g e - 21
  • 22. Chapter-4 Literature Review The microfinance offers an important and effective means to achieving change on a number of different fronts, economic, social and perhaps also political. The success of microfinance organizations in building up the organizational capacity of poor women provides the basis for their social mobilization that many other development interventions have not been able to achieve (Kabeer, 2005). The SHG-bank linkage programme in India has a greater economic impact on households, with increases in income and decline in vulnerability. There is significant impact on SHG households in terms of control, management ability, self-confidence, change in behavior and decision-making. Apart from social empowerment, the SHG households also demonstrate greater awareness and participation in local politics. However, the impact is not reflected in certain key decisions, such as, no significant changes are observed in the decision-making power of women in the field of adopting family planning measures or buying and selling of land (Swain, 2006). The case study reveals that the SC/STs have significantly improved their ability to collectively bargain, to plan projects and to organize group activities besides improving their social position within their own groups and within the wider community. An unexpected finding is the poor economic empowerment measured in terms of improvement in assets and income and significantly positive results has been found. There is general improvement in the borrowing capability for majority of the poor. Even so, reckoned in terms of leadership P a g e - 22
  • 23. empowerment increase in self-confidence and general gender rights awareness building have an impressive record especially among SC/ST groups. The several successful cases have been shared with this study include those of a young woman who lost her earning husband leaving the burden of educating and marrying children on her, a woman whose husband is a drunkard and who also lost the only male child and a woman who now lives a positive life having escaped a suicide attempt. They are recorded here because, to show how Self –help group based microfinance does supply significant bonding ‗social capital‘ along with credit support (Oommen, 2008). The empirical results show that rural women in the studied areas have well been empowered through microfinance programme. The empowerment has been measured on the basis of four criterions such as increment in income, upliftment of standard of living, improvement in literacy level and ability to take major economic decisions in the family. But SHG members have not been able to earn income equally in the PostSHG situation due to the lack of organized local markets (Das; Mukherjee and Dutta, 2009). The empirical results also show that women group members as well as their families have well been empowered economically and socially through the microfinance programme (Das; Dey and Dutta, 2009). The group based microfinance interventions has a positive impact on the socio- economic development of poor villagers in Orissa. The empirical results show that group based microfinance impacted the client household positively in the increase of income, assets position, savings, and literacy and in the reduction of migration. The expenditure pattern was altered for P a g e - 23
  • 24. households who participated in the group based microfinance intervention where more impact was on the expenditure on productive assets and household consumables followed by house construction and repair. The impact was the least but positive in the case of the food expenditure (Panda, 2009). There is positive impacts on empowerment and nutritional intake in group based microfinance programme areas overall and heterogeneity of impacts between members of pre-existing and newly formed groups, as well as non-participants. Female social and economic empowerment in programme areas increased irrespective of participation status. Nutritional benefit was more pronounced for new participants than for members of pre-existing groups (Deininger and Liu, 2009). However the researchers have concluded the positive impact of the microfinance on the socio-economic empowerment of the poor people in India and across the world. The researchers had conducted the impact assessment studies of microfinance through SHG – Bank Linkage towards the socio-economic empowerment of the poor people between Pre and Post-SHG situations. P a g e - 24
  • 25. Chapter- 5 Data Collection and Methodology This study is based on both primary and secondary data. The primary data has been collected from the field survey in the different rural areas of Burdwan District of West Bengal. For this purpose both open-ended and close-ended questionnaires have been prepared to collect necessary information as well as to justify the socio-economic empowerment of the SHG members as well as their families. The survey has been conducted from the month of July to August; 2011. On the other hand, secondary data relating to general information about the selected SHGs has been collected from the internal records of the Rasulpur Branch of Paschim Banga Gramin Bank. Beside these few information has also been collected from the internet, journals, magazines, newspapers and books to gather knowledge about microfinance programs in India through SHG-Bank Linkage and its impact on socioeconomic empowerment of the poor people. In this study Two Stage (Mixed) Sampling Technique has been used for the collection of primary data as well as for testing hypothesis between Pre and Post-SHG situations. The RASULPUR Branch of PASHIM BANGA GRAMIN Bank, BURDWAN District has been able to form 300 SHGs (as on 30th June, 2011). In the first stage out of the 300 SHGs, 100 SHGs have been selected on the basis of their loan repayment P a g e - 25
  • 26. performance. In the second stage out of 100 SHGs, one SHG member from each group has been selected randomly in this study. The collected data has been summarized in a ‘Master Sheet’ in such a systematic manner that can fulfill the objectives of the study. However the summarized data has been analyzed with the help of few mathematical and statistical tools like Percentage, Mean, Standard Deviation (SD), Coefficient of Variation (CV), Pearson Correlation Coefficient etc. by using the software (Minitab 15.0). P a g e - 26
  • 27. Chapter- 6 Analysis and Findings 6.1 General information of the SHG members: Table-1 Sample size-100 Hindu 96% Muslim 4% Female 82% Male 18 % Married 97% Unmarried 3% 20-30 16% 31-40 43% 41-50 41% Motives behind the Savings 3% SHG formation Recognition in the Society 4% Religion Sex Marital status Age Self-Help in terms of income generation 10% Enhancement of family Income 83% P a g e - 27
  • 28. Analysis and Findings: According to the field survey in the rural areas of Adra of Purulia District 1. The religious status of the SHG members is Hindu (96%) and Muslim (4%). 2. The sex ratio is female (82%) and male (18%). 3. The marital status of the SHG members is married (97%) and unmarried (3%). 4. The SHG members belong to the age group of 20-30 (16%), 31-40 (43%) and 41-50 (41%). 5. The motives of the members behind the formation of SHG were savings (3%), recognition in the society (4%), self-help in terms of income generation (10%) and enhancement of family income (83%). P a g e - 28
  • 29. 6.2. Economic activities relating to occupation of the SHG members Table-2 Pre-SHG Post-SHG Employed 8% 90% Unemployed 92% 10% 100 100 Pre SHG 80 post SHG 80 60 60 40 40 20 20 0 0 Employed Unemployed Employed Unemployed Analysis and Findings: The economic activities relating to occupation of the SHG members in the preSHG situation were found that 8% members were employed and the rest 92% were unemployed. But on the contrary the economic activities relating to occupation of the SHG members in the post-SHG situation are found that 90% members are employed and the rest 10% are unemployed. Here is the Positive Impact of Microfinance, because almost all members are engaged in economic activities to generate personal income as well as their families. P a g e - 29
  • 30. 6.3. Literacy level of the SHG members Table- 3 Pre-SHG Literate (35 %) Illiterate Primary Post-SHG Illiterate Secondary Literate Sign Only Read & Write 65% 20% 15% 60% 10% Pre-SHG 80 30% Post-SHG 60 60 40 40 20 20 0 0 Illiterate 65% Literate 35% Illiterate60% literate40% Literacy level of the SHG members Pre and post P a g e - 30
  • 31. Analysis and Findings: 1. Out of 100 group members in Pre-SHG situation 65% were illiterate and 35% were literate, among which 20% passed primary standard and 15% passed secondary standard. On the other side in the Post-SHG situation,60% remains illiterate and the 30% members have been able to read and write and 10 % can do sign only. Here is the Positive Impact of Microfinance, because microfinance programme has changed the scenario of Literacy Level among the SHG Members. P a g e - 31
  • 32. 6.4 Impact of Microfinance Programs 6.4.1 Average annual personal income (Rs.) of the SHG members Table- 4 Pre-SHG 33612 Mean 7490 Standard Deviation Coefficient of Variation 22.28 Post-SHG 36852 5897 16.00 Analysis and Finding; i. The mean average annual personal income of the SHG members (Rs.36852) in the Post-SHG is higher than the Pre-SHG (Rs.33612). ii. The high inequality of average annual personal income distribution has been found for both Pre -SHG (C.V = 22.28) and Post-SHG (C.V = 16). iii. The high variation in average annual personal income distribution has been found for the SHG members between Pre and post-SHG situations. P a g e - 32
  • 33. 6.4.2 Average annual household income ( Rs.) of the SHG members Table- 5 Pre-SHG 71040 Mean 9807 Standard Deviation Coefficient of Variation 13.80 Post-SHG 76788 6644 8.65 Analysis and Findings: i. The mean average annual household income of the SHG Members (Rs.76788) in the Post-SHG is higher than the Pre-SHG (Rs.71040). ii. The high inequality of average annual household income distribution has been found for Pre -SHG (C.V = 13.80) but moderate inequality has been found in the Post-SHG (C.V = 8.65). iii. The high variation in average annual household income distribution has been found for the SHG members between Pre and post-SHG situations. P a g e - 33
  • 34. 6.4.3 Average annual household expenditures (Rs.) of SHG members Table- 6 Pre-SHG 68076 Mean 9768 Standard Deviation Coefficient Of Variation 14.35 Post-SHG 71448 5867 8.21 Analysis and Findings: i. The mean average annual household expenditures of the SHG Members (Rs.71448) in the Post-SHG is higher than the Pre-SHG (Rs.68076). ii. The high inequality of average annual household expenditures has been found for Pre -SHG (C.V = 14.35) and but moderate inequality has been found for Post-SHG (C.V = 8.21). iii. The high variation in average annual household expenditures has been found for the SHG members between Pre and post-SHG situations. P a g e - 34
  • 35. 6.4.4 Average annual household savings (Rs.) of SHG members Table- 7 Pre-SHG 2964 Mean 601.9 Standard Deviation Coefficient of Variation 20.31 Post-SHG 5340 1149 21.52 Analysis and Findings: i. The mean average annual household savings of the SHG Members (Rs.5340) in the Post-SHG is higher than the Pre-SHG (Rs.2964). ii. The high inequality of average annual household savings has been found for both Pre -SHG (C.V = 20.31) and Post-SHG (C.V = 21.52). iii. The high variation in average annual household savings has been found for the SHG members between Pre and post-SHG situations. P a g e - 35
  • 36. 6.5 Social impact in terms of standard of living of the SHG member as well as their families between Pre and Post-SHG Situations Table-8 Indicators of social aspects Pearson correlation coefficient (rxy) Sources of drinking water 0.798 Housing Condition 0.396 Sanitation Facilities 0.606 Clothing (Dress quality better) 0.588 TV Serial & Cinema watching 0.511 Pre&PostPearson correlation coefficient (rxy) 0.8 0.7 0.6 0.5 0.4 Pre&PostPearson correlation coefficient (rxy) 0.3 0.2 0.1 0 Sources of Housing Sanitation drinking Condition Facilities water Clothing (Dress quality better) TV Serial & Cinema watching P a g e - 36
  • 37. Analysis and Findings: Sources of drinking water i. The Correlation between the use of own Deep Tube well in the Pre-SHG and the improvement from the other sources to own Deep Tube well in the Post-SHG shows a high positive correlation (r = 0.798). Housing Condition ii. The Correlation ( r = 0.396) between the better earthen housing condition in Pre-SHG and the improvement to better condition in Post-SHG shows a moderate positive correlation. Sanitation Facilities iii. The Correlation between Personal Lavatory with Bath Room in Pre and Post-SHG situations indicate a high positive correlation (r = 0.606) Clothing (Dress quality better) iv. The Correlation of better dress quality of the members between Pre and Post-SHG situations shows a high positive correlation (r = 0.588) TV Serial & Cinema watching v. The Correlation of watching the TV Serial / Cinema between Pre and Post-SHG situations indicate a high positive correlation (r = 0.511) P a g e - 37
  • 38. Chapter-7 Recommendation The SHG program is one of the most successful project by Government of India. Just after Andhra Pradesh, West Bengal is the second largest area of SHG program. My study is limited by number of SHGs in Rasulpur area of Bardhaman District. The hypothesis and analysis clearly signifies the improvement of BPLs in SHG program. On the other hand it also made a dramatic change in Socio economic environment. But there are several recommendations we wish to give to our respective Bank as well as Government.  Improving NGO management/ Accountability: West Bengal has around 1.7 lakh NGOs under its fold thereby putting a large burden on the WBPIU(West Bengal project implementation unit) to keep track of their field activities. Some of these NGOs might also not be adequately qualified / staffed to handle the job. It becomes impractical/ unviable for the PIU to maintain a strong staff strength to merely monitor the NGOs. Instead, improvements in NGO accountability could to a certain extent be achieved.  Monetary Incentives To NGOs Linked With quality: Linking the ‗quality‘ aspects to the incentives provided to NGOs can also be explored. Currently, the incentives for NGOs (the formation, cost, training cost, support cost etc) are linked only to the number of SHGs and not to the quality of the groups formed thereby not providing any sort of motivation / incentives for the NGOs to improve the quality of the groups formed. This initiative should be taken by Government. P a g e - 38
  • 39.  Bank should improve their grading system: Bank has to improve their grading system and best on that system Gramin bank will able to measure to performance of the SHGs member and decide how much loan will provide to SHG members after analyze their attentiveness.  Less Responsible: Some of SHG members are less responsible regarding their repayment of loan because of the lack of knowledge about the program. P a g e - 39
  • 40. Chapter-8 Conclusion From this study it has been observe that few group members were involved in economic activities in the Pre-SHG. But now maximum number of members involved in the economic activities. Although there is high inequality in income distribution among the selected SHGs members as well as their families, but all of the group members and their families have economically well been empowered in the Post-SHG. We have also observed that along with economic empowerment, group members as well as their families are well been empowered socially in the Post-SHG, which ensures the optimum standard of living of the group members as well as their families. Interestingly the analysis shows that the literacy level of the group members has been improved at optimum level through the microfinance programme in the Post-SHG. During the field survey the group members told that they were dependent on the informal money lenders in the PreSHG. Now they are free from the clutches of informal money lenders through microfinance programme. However, poor rural People in the study area have well been empowered economically and socially through the microfinance programme. But they have not been able to earn income equally in the Post-SHG because of lack of organized local markets. In this aspect Govt. should intervene and assist them to market their products. P a g e - 40
  • 41. In conclusion it can say that of course the benefits of development of Microfinance Programs reaches to the poor villagers through SHG – Bank Linkage at Grass Root Level. P a g e - 41
  • 42. Chapter -9 : Annexure - I Bibliography: 1. Das, S; Dey, A and Dutta, S.K. (2009). Impact of Microfinance Programme through SHG-Bank Linkage: An empirical study towards the socio-economic empowerment of the rural people, especially women. The Annamalai Journal of Management (Special Issue), 113-124. 2. Das, S; Mukherjee, S and Dutta, S.K. (2009). Microfinance programme through SHG-Bank Linkage and Rural Development: A micro-level comparitive study towards the empowerment of poor people, especially women in the rural areas of Burdwan and Birbhum Districts of West Bengal. 92nd Annual Conference Volume; Structural Reforms and Agriculture. II, pp. 217-236. Bhubaneshwar: Indian Economic Association. 3. Deininger, K and Liu, Y. (2009, March). Economic and Social Impacts of Self Help Groups in India. The World Bank Policy Research Working Paper 2009:4884 , 1-32. (www.microfinancegateway.org/gm/document- 1.9.38493/39.pdf) P a g e - 42
  • 43. 4. Kabeer, N. (2005, October). Is microfinance a 'Magic Bullet' for women's empowerment?: Analysis of Findings from South Asia. Economic and Political Weekly , 4709-4718. 5. (Oommen, M. (2008, April). Microfinance and Poverty Alleviation: The case of Kerala's Kudumbashree. Working Paper2008:17;Centre for Socio-Economic and Environmental Studies , 1-15. 6. Panda, D. (2009). Participation in the group based Microfinance and its Impact on Rural Households: A Quasi-experimental evidence from an Indian State. Global Journal of Finance and Management , I (2), 171-183. 7. Swain, R.B (2006, September). Microfinance and women's empowerment: Evidence from Self help group bank linkage programme in India. Division for market Development , 1-24. P a g e - 43
  • 44. Annexure – II Sample Questionnaire (The information collected from the respondent will strictly be used for academic purpose only) 1) Name of the member: 2) Name of the group: 3) Religion: (i) Hindu (ii) Muslim 4) Material Status: (i) Married (ii) Unmarried 5) Age group: (i) 20-30 (ii) 31-40 (iii) 41-50 6) Motives behind the group formation: (i) Savings (ii) Recognition in the society (iii) Self help in terms of income generation (iv) Enhancement of family income 7) Economic activities of the member: PRE – S.H.G Unemployed POST– S.H.G Employed Unemployed Employed 8) Literacy level of the SHG member: P a g e - 44
  • 45. PRE – S.H.G ILLITERATE POST– S.H.G LITERATEILLITERATE PrimarySecondary H.S Graduate LITERATE Sign Read only & Write both 9) Average annual Income, Expenditures and Savings (Rs.): PRE – S.H.G Ave. Ave. Family Family POST– S.H.G Ave. Ave. Family Family Annual AnnualExpenditures Savings Annual AnnualExpenditures Savings Personal Income Income of the of the Family Member Personal Income Income of the of the Family Member P a g e - 45
  • 46. 11. (a) Source of Drinking water: PRE – S.H.G POST– S.H.G Personal deep Collection from Collection from tube well other source other source (old) Specify: Personal deep tube well (New) Specify: (b) Housing condition: PRE – S.H.G Earthen POST– S.H.G Earthen but improved quality Earthen Earthen but improved quality (c) Sanitation: PRE – S.H.G Personal lavatory General (openair) with bath room (Old) POST– S.H.G Personal lavatory General (openair) with bath room (New) P a g e - 46
  • 47. (d) Clothing (Dress quality): PRE – S.H.G POST– S.H.G Better Poor Better Poor (e) TV Serial or Cinema watching: PRE – S.H.G Yes POST– S.H.G No Yes No 12) Do you have any problem regarding the microfinance programme? (i) (ii) 13) Do you have any suggestion towards the bank to promote microfinance programme in better way? (i) (ii) P a g e - 47