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  • 1. Microfinance Programmes and Women Empowerment through Capacity Building A Grass Root Level Study through SHG (Self Help Group) – Tripura Grameen Bank Linkage in the Rural Areas of Churaibari, Dharmanagar of North Tripura District, Tripura. A project report submitted to WBUT in partial fulfillment of requirement for the award of Master of Business Administration (MBA). Submitted by: Name:- SUBIR NATH Regd. No:Roll No:- Supervisors:Mr. Swarnabha Das Faculty Members in MBA Department SVIMCS MBA (3RD SEMESTER) SWAMI VIVEKANANDA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCE
  • 2. DECLARATION I, the undersigned, hereby declare that the project report entitled Sales Promotion Submitted by me to the University of WBUT, in partial fulfillment of the requirement for the award of degree of Master of Business Administration under the guidance of Prof Amitava Gupta, is my original work and the conclusions drawn therein are based on the material collected by myself. The Report submitted is my own work and has not been duplicated from any other source. I shall be responsible for any unpleasure moment/situation. Place: Date: Name: Student
  • 3. Acknowledgement I would like to convey my sincere thanks to Mrs.Kakoli Gupta, HOD of SVIMCS for her continuous inspiration. I wish to take this opportunity to express my deep sense of gratitude to my joint supervisors Mr. Swarnabha Das, faculty members in MBA Department of SVIMCS for their precious guidance and help to complete my project report successfully. I would like to convey my sincere thanks to Mr.Dipak Saha, Branch Manager, Churaibari Branch, Tipura Grameen Bank 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. REGISTRATION NO: ROLL NO.:- Date: Place: - -------------------------Subir Nath
  • 4. Table of Contents Page No. Executive Summary Chapter- I: Introduction Chapter-2: Bank Profile Chapter-3: Objectives and Hypothesis 3.1 Primary Objective 3.2 Specific Objectives 3.3 Hypotheses Chapter-4: Survey of Literature Chapter- 5: Data Collection and Methodology Chapter- 6: Analysis and Findings 6.1General Profile of the SHG Members as well as their families 6.2 Poverty Level of the families of the SHG Members 6.3 Microfinance and Self Worthiness of the SHG Members 6.4 Socio – economic aspects of the SHG members as well as their families: Chapter-7: Conclusion Annexure-I: Bibliography Annexure-II: Sample Questionnaire
  • 5. Executive Summary The Primary objective of the study is to assess the role of microfinance programmes to empower women SHG members through capacity building in the rural areas of Churaibari of North Tripura District, Tripura. For this purpose a local bank, namely Churaibari Branch of Tripura Grameen Bank has been selected in this study. Specific Objectives: 1. To find out whether any role of microfinance programmes in the Self worthiness of the SHG members in the Post-SHG situation; 2. To find out whether any role of microfinance programmes in the decision making process of the family of SHG (with reference to children education and marriage) members in Post-SHG situations; 3. To find out whether any role of microfinance programmes towards the socio – economic empowerment of the SHG members as well as their families between Pre and Post-SHG situations; Hypotheses: 1. H01: There is same attitudes of the SHG members in the decision making process of the family between Pre and Post-SHG situations;
  • 6. 2. H02: There is no difference in the variation of socio-economic indicators 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 Churaibari of North Tripura District, Tripura. For this purpose both open-ended and close-ended questionnaires have been prepared to collect necessary information to justify whether any role of microfinance programmes to empower women through capacity building. The survey has been conducted from the month of August to October, 2013. On the other hand, secondary data relating to general information about the selected SHGs Leaders has been collected from the internal records of the Churaibari Branch of Tripura Grameen Bank. Beside these few information has also been collected from the internet, journals, magazines, news papers and books etc to gather knowledge about microfinance programmes in India through SHG-Bank Linkage and Women Empowerment. In this study Stratified Random sampling technique has been used for the collection of primary data as well as for testing hypothesis between Pre and Post SHG situations. The Churaibari Branch of Tripura Grameen Bank, North Tripura. District has been able to form 50 SHGs
  • 7. in the year 2013-14 (up to the end of May). Out of these 50 SHGs, 25 SHGs comprise entirely women and of whom 10 SHGs have been selected randomly in this study. These 10 SHGs consist of 126 members. 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 Mathematical and statistical tools like Percentage, Mean, Standard Deviation and paired two samples for T - test by using the software (Minitab 15.0). Major Findings 1. All the SHG Members reported that they had no involvement in the decision making process of the family regarding children marriage and education in the Pre-SHG. 2. Out of 126 SHG members, 100% improvement has been regarding feelings of freeness to talk and their involvement in decision making process of the family regarding children education and marriage in the Post-SHG . 3. The better significant improvement has found in the variation of Drinking Water provision between Pre and Post-SHG situations since t = (-) 9.58, Mean difference = (-) 0.6508, Standard Deviation difference = 0.7623 with 0.05 significant level.
  • 8. 4. The better significant improvement has found in the variation of Sanitation Facilities between Pre and Post-SHG situations since t = (-) 11.08, Mean difference = (-) 0.6984, Standard Deviation difference = 0.7073 with 0.05 significant level. 5. The better significant improvement has found in the variation of Square Milk per Day between Pre and Post-SHG situations since t = (-) 5.07, Mean difference = (-) 0.4127, Standard Deviation difference = 0.9145 with 0.05 significant level. 6. The better significant improvement has found in the variation of better Dress Quality between Pre and Post-SHG situations since t = (-) 8.11, Mean difference = (-) 0.5873, Standard Deviation difference = 0.8126 with 0.05 significant level. 7. The better significant improvement has found in the variation of Personal as well as family Income Level of the between Pre and Post-SHG situations since t = (-) 10.00, Mean difference = (-) 0.6667, Standard Deviation difference = 0.7483 with 0.05 significant level. 8. The better significant improvement has found in the variation of Household Savings Pre and Post-SHG situations since t = (-) 10.91, Mean difference = (-) 0.6984, Standard Deviation difference = 0.7187 with 0.05 significant level.
  • 9. 9. The better significant improvement has found in the variation Change in assets ownership between Pre and Post-SHG situations since t = (-) 9.58, Mean difference = (-) 0.6508, Standard Deviation difference = 0.7623 with 0.05 significant level. Chapter – 1 Introduction The Microfinance Programmes through SHGs (Self Help Groups) – Bank Linkage have been launched by the Government of India as a strategy of poverty alleviation and rural development. The pioneering efforts at this has been made by National Bank for Agriculture and Rural Development (NABARD) and Small Industries Development Bank of India (SIDBI) 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 scenarios of supply of formal financial access to financial services are services within India constraint for the poor not interest rates. Microfinance refers to small scale financial services including both credits and deposits provide to people who were engaged in farming or fishing or herd; operate small or microenterprises where goods are produced, recycled, repaired or traded, provide services: work for wages or commissions: gain income for renting out small amount of land, vehicles, draft animal or machinery and tools in both rural and urban areas 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 on loans, while microfinance also includes support services where people open up channels for thrift, market assistance, technical assistance, capacity
  • 10. building, insurance, social and cultural programmes etc. So where microcredit is ‘only credit’ there microfinance is ‘credit plus. The main theme of Microfinance Programmes are that where poor people do not have access to normal bank loans for income generating activities, Microfinance extends small loans to very poor people for self employment purpose. It enables the poorest of the poor, especially the women to generate income for them as well as for their families. The SHG is the basic constituent of microfinance programmes in India. SHG is a group of 10 to 20 members usually poor and often women who voluntarily organize themselves for the eradication of poverty. The SHG is generally formed by a name. Member make small regular saving contributions over a few months until there is enough capital in the group to being lending The members of the group agree to save regularly a very nominal amount of money (say Re.1 per day per member) and pool their savings into a fund known as ‘Corpus Fund’ from which they can borrow up to 4:1 ratio (i.e. 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 savings account. After 6 months of the group formation bank begins to lend money to the group as a unit without collateral, relying on self-monitoring and peer-pressure within the group for repayment of the loans. Sometimes the group can withdraw the deposited amount from the savings account for their inter-loaning purpose. Every group is directed by group leader and deputy leader who are elected by casting vote of the other group members. Generally they maintain the meeting resolution, record books and register and act as coordinators between the bank and the group.
  • 11. Chapter-2:- Profile of Tripura gramin Bank Tripura Gramin Bank was set up with four branches on 21st December, 1976under the Regional Rural Bank Act. 1976 in the state of Tripura. Since its existence, the Tripura Gramin Bank is dedicated to the amelioration of the socio-economic condition of the rural people of the state. The state of Tripura is one of the North-Eastern States of India having an area of 4051 sq. mile or 10491.69 sq. km. and a population of 36,71,032 with 18,71,867 males and 17,99,165 females as per 2011 census. Tripura is almost surrounded by international borders having a road-link through Assam with the rest of the country. Despite various constraints like geographical and infrastructural impediments, Tripura Gramin Bank has been playing a pivotal role for the welfare of the people of the State for last 35 years and has established its firm position and has been enjoying the confidence of the people. Since the economy of the state is basically agrarian, the development what so ever is based on agriculture apart from a segment of village and cottage industries . Tripura Gramin Bank has now become an inseparable part of state economy for its commitment and contribution to the process of economic upliftment of the poor and downtrodden people of the state. Beside normal banking business, Tripura Gramin Bank is also extending diversified services like payment of monthly salary to a larger section of the employees of the state Govt., TTAADC and School Teachers. More than 125000 nos. of NREGA’s and 50000 old age pension payment also made through the bank. Other services including collection of Tripura Sales Tax and value of Food grains from F. P.
  • 12. Shop dealers on behalf of the State Govt. is being done by the bank since long. Tripura Gramin Bank has been seriously implementing the latest R. B. I. guideline on financial inclusion where in extremely poor people are encouraged for opening their SB A/C with ‘O’Balance . They are also provided O/D Loan to meet their credit requirement in a hassle free manner . Bank has also taken step for issuance of G. C. C. to deserving candidates up to Rs.25000/= without insisting for collateral security. Tripura Gramin Bank has been attaching topmost priority in implementation of micro credit, particularly direct lending to SHG Groups form mostly by women entrepreneurs. BANK PERFORMANCE TRIPURA GRAMIN BANK Head Office: Abhoynagar Date of Establishment: 21/12/1976 Performance of the Bank at a glance ( Amtt. In thousand of Rs. ) A. Key Performance Indicators 1No. of districts covered 2No. of Branches 2009-2010 2010-2011 2011-2012 4 4 4 111 113 123 a) Rural 82 84 91 b) Semi – Urban 20 20 22 9 9 10 651 669 680 267 292 299 20501938` 22543010 27747322 22.03% 9.96% 23.09% 755771 1052696 1446469 28.83% 39.29% 37.41% 7996476 9940126 11758236 20.67% 24.31% 18.29% 5768953 6550737 8291488 c) Urban 3Total Staff Of which , Officers 4Deposit Growth % 5Borrowing Outstanding Growth % 6Gross Loans & Advance Outstanding Growth % Of 6.above , loans to Priority Sector
  • 13. Of 6.above , loans to Non-Target Group 2227523 3389389 3466748 Of 6.above , loans to SC/ST 3010873 3971258 4965458 Of 6.above , loans to SF/MF/AL 1284828 1928384 2209738 Of 6.above , loans to Minorities 417684 563841 798153 39.00% 44.09% 42.38% 11294810 11201810 15548862 57.17% -8.23% 38.80% SLR Investment Outstanding 3282090 3722943 3882350 Non-SLR Investment Outstanding 8012720 7478867 11666512 7CD Ratio 8Investment Outstanding Growth % B. 12 2011-2012 17368098 20841751 25375974 57.48% 20.00% 21.76% Average Borrowings 661955 926048 1249582 49.65% 39.90% 34.94% Average Gross Loans & Advance 7091818 8457239 9554965 Growth % 11 2010-2011 Growth % 10 2009-2010 Growth % 9 Averages 41.79% 19.25% 12.98% Average Investments 4792769 7057500 9681932 Average Deposits Growth % 3.61% 47.25% 37.19% Average SLR Invt. As % to Avg. Deposit 16.89% 17.38% 18.37% Average Non-SLR Invt. As % to Avg. Deposit 10.70% 16.48% 19.26% 21371262 25194580 29175612 2714160 3574022 5404483 9.37% 31.68% 51.22% Of 14 above , loans to Priority Sector 2010717 2629207 2362585 Of 14 above , loans to Non-Priority Sector 703443 944815 1741898 Of 14 above , loans to SC/ST 1245708 1935159 1767098 13 Average Working Funds C. LOANS ISSUED DURING THE YEAR 14 Loans Issued during the year Growth %
  • 14. Of 14 above , loans to SF/MF/AL 670301 1029209 1127246 Of 14 above , loans to Minorities 51282 114913 276931 28498376 32483136 39510802 256742 287461 321226 43776 48555 58104 As on As on As on June,2009 June,2010 June,2011 Demand 2239332 2702000 6214058 Recovery 1621670 2155029 4719577 Overdue 617662 545303 1494481 Recovery % 72.42% 79.76% 75.95% D. PRODUCTIVITY 15 Total Business Per Branch Per Staff E. RECOVERY PERFORMANCE 16 Total
  • 15. TRIPURA GRAMIN BANK SPECIAL PROGRAMMES: i) Agricultural credit:- Consequent upon the pronouncement made by the Hon’ble Finance Minister in Parliament during June, 2004 for doubling of Agriculture credit in 3 years, the bank had drawn a perspective plan aiming at the very objective. Accordingly, the target for the year in Agriculture Sector had been recast and refixed. TGB only amongst all banks in Tripura successfully achieved the target for the year in this sector. The performance of the bank for last two years is depicted in a table below. Year Target Achievement % of Achievement 2009-2010 636133 670301 105.38% 2010-2011 1083131 694608 64.13% ii) Fresh Disbursement of loans and advances Annual Credit Plan(ACP):The bank prepared its Annual Credit Plan for the year of report 2010-2011 considering the different important aspects like potentiality, viability, marketability, availability of resources etc. Due to constant follow-up and close monitoring, the bank could remarkably achieve the target of ACP for the year 2010-2011 Against the target of R.2925709 thousand for fresh lending under priority sector the bank extended credit to the tune of R.2629207 thousand which constitutes 89.87% achievement of the ACP. The sector wise target and achievement of ACP under priority sector for 2010-2011 are shown in the following table. Sector Target Achievement % of achievement
  • 16. No. Amount No. Amount Agri. & Allied Activities 15000 1083131 19608 694608 64.13% Industry 2000 301799 1536 124538 41.27% Service 20000 1540779 13382 1810061 117.48% TOTAL37000 2925709 34526 2629207 89.87% iii) OUR PRIORITY AREAS: Tripura Garmin Bank has been seriously implementing the latest R. B. I. guideline on financial inclusion where in extremely poor people are encouraged for opening their SB A/C with ‘O’ Balance. They are also provided O/D Loan to meet their credit requirement in a hassle free manner. Bank has also taken step for issuance of G. C. C. to deserving candidates up to Rs.25000/= without insisting for collateral security. To make rural farmers eligible for fresh credit R. B. I. formulated scheme on O.T.S. is being implemented in large scale. Due to customer friendly service rendered by the staff members , TGB has been able to earn the confidence of all sections of people of the state. TGB also provides the following services. Issuance of KCC. Issuance of GCC. Issuance of SCC. Swabalamban (Self Employment Scheme formulated by the State Government). KVIC Margin Money Scheme. SGSY Scheme. Nabard Scheme on Venture Capital, Dairy, Poultry etc. Rain Water Harvesting. Farm Mechanization.
  • 17. Various Agri& Allied activities. iv) Kisan Credit Card (KCC): The bank has been giving top priority on implementation of KCC scheme through all of its branches to bring maximum number of farmers within the ambit of this programme for ensuring timely and hassle free credit dispensation. During the year 2010-2011 , the bank issued 18167 no’s of KCC while 12362 Nos. were issued in last year. The total number of KCC issued by the bank since inceptions is 70871 Nos. with over all credit limit of Rs.1227841 thousand. v) Financial Conclusion:The essence of financial inclusion is in trying to ensure that a range of appropriate financial service is made available to every individual and enabling them to understand and access those services. National Rural Financial Inclusion Plan (NRFIP) envisages a target to provide access to comprehensive financial services to at least 50% of rural cultivators and non-cultivator households across different stages by 2012 in which RRBs have immense responsibility to shoulder. Under the plan a minimum target of covering 250 new cultivators and non cultivators per annum per branch has been envisaged. The bank pledges its commitment to carry out its responsibility, in keeping with the policy of the Government, of including marginal farmers, landless labourers, oral lessees, self employed and unorganized sector enterprises, ethnic minorities and socially excluded groups, senior citizen and women into the fold of various financial services offered by it. As a mark of commitment at all the branches of the bank during the reporting period, a number of initiatives have been taken. The performance of the bank under various financial services offered by it, are given hereunder: No-frill A/C opened during the (2010- A/C opened in “0” Balance since 2011) inception 28684 298699 Small Overdraft loan issued against No-frill account holders:
  • 18. O/D sanctioned during the year Cumulative O/D (2010-2011) sanctioned A/C Amount A/C Amount 4123 5860 16811 8775 General Credit Card / Swarojgar Credit Card: No. of Card issued No. of Card issued Particulars during the year (2010- Amount (Cumulative Position) 2011) GCC 1410 27884 12756 157655 SCC 54 3421 459 45843 Loan to indebted Farmer (Including Debt Swap Scheme) No. of Villages adopted 117 Loans O/s. Loans Issued A/C Amount A/C Amount 289 5421 289 5197 VI) SELF-HELPS GROUPS (SHG):The Bank has given special thrust on organization of Self Help Groups with a view to developing awareness among the rural masses especially the women folk about fulfillment of their urgent credit needs in a better way. The bank has been trying to involve all the branches in SHG credit linkage programme with the very purpose of extending effective credit flow to that section of people who are still outside the ambit of institutional finance. The performance of TGB in regard to deposit linkage and credit linkage of SHGs is so far remarkable as compared to other banks in Tripura. During the reporting year 397 Nos. of Self Help Groups were formed and the total cumulative no. of SHG stood at 16229 Nos. at the end of the year. All groups are maintaining SB A/c with our bank branches and aggregate balance reached to R.271943 thousand as on 31.03.2011. Out of 16229 Nos. of SHGs
  • 19. 11209 Nos. are women groups. 9535 Nos. of SHGs have been credit linked by the bank directly up to the end of the reporting year with total credit limit of R.229224 thousand. Besides direct credit linkage, the bank has provided Revolving Fund to 7463 Nos. SHGs with aggregate credit limit of R.154277 thousand up to the end of this year. The bank has also provided project finance after 2nd Gradation to 5289 SHGs with credit limit amounting R.1468105 thousand under SGSY during the reporting year. VII) INCOME RECOGNITION AND ASSET CLASSIFICATION:The assets of the bank were classified properly following prudential norms of accounting prescribed by the Reserve Bank of India .The standard assets (performing loans and advances)of the bank increased to R.9731736 thousand at the end of the year, 2010-2011 which constitutes 97.90% of gross loans and advances showing a growth of 26.25% over previous year. The bank provided requisite amount for provision as per category of assets in compliance to provisioning norms of RBI. The statutory Auditors being satisfied have also certified the classification of assets, income recognition and provision made by the bank.
  • 20. TRIPURA GRAMIN BANK's MAN POWER: STAFF STRENGTH OF TRIPURA GRAMIN BANK Manpower in Regional Rural Bank has been re-categorized & renamed as per Govt. of India norms. CHAIRMAN General Manager Senior Manager Head of Department (at HO) Regional Manager Senior Branch Manager Senior Manager Manager Assistant Manager Office Assistant Office Attendant Appointed from Sponsor Bank Presently Deputed from 1Sponsor Bank 25 6 3 11 (IT-1; INSP-1;DEV51;RSETI-1;C&R-1) (Branch Manager & Manager attached to 136various Deptt.) (Branch Manager, Deputy Manager & 341Attached Officer) (Clerical Cadre, Cashier, 246Typist etc.) (Messenger-cum-Peon, 70Driver etc.)
  • 21. STAFF POSITION AS ON 28-08-2013 Category Senior Manager/ Regional Manager/ Senior Branch Manager Nos. 25 Manager 136 Assistant Manager 341 Office Assistant 246 Office Attendant 70 Total 818 BOARD OF DIRECTORS SRI. UPENDRA SABAR, CHAIRMAN, TGB SRI.SANJAY RANJAN DAS, CHIEF MANAGER, UBI HO, KOLKATA SRI. PRAKSHIT SUBUDDHI SRI. L.N.ROKHUM (IAS), DGM & CRM UNITED BANK OF INDIA TRIPURA REGIONAL OFFICE DIRECTOR, INSTITUTIONAL FINANCE, GOVT. OF TRIPURA, AGARTALA
  • 22. SRI. S.R.DAS, NOMINEE DIRECTOR, SRI. KIRAN GITTE, DISTRICT MAGISTRATE (WEST TRIPURA) SRI. KAJAL DAS, NOMINEE DIRECTOR, GOVT. OF INDIA GOVT. OF INDIA SRI.K. CHAKRABORTY, DGM,RBI, AGARTALA OFFICE SRI.ASHOK MISRA DGM, NABARD TRIPURA REGIONAL OFFICE Chapter – 3 Objectives and Hypothesis (3.1) Primary Objective: The Primary objective of the study is to assess the role of microfinance programmes to empower women SHG members through capacity building in the rural areas of Churaibari, Dharmanagar of North Tripura District, and Tripura.
  • 23. For this purpose a local bank, namely Churaibari Branch of Tripura Garmin Bank has been selected in this study. (3.2) Specific Objectives: 4. To find out whether any role of microfinance programmes in the Self worthiness of the SHG members in the Post-SHG situation; 5. To find out whether any role of microfinance programmes in the decision making process of the family of SHG (with reference to children education and marriage) members in Post-SHG situations; 6. To find out whether any role of microfinance programmes towards the socio – economic empowerment of the SHG members as well as their families between Pre and Post-SHG situations; (3.3) Hypotheses: 3. H01: There is same attitudes of the SHG members in the decision making process of the family between Pre and Post-SHG situations; 4. H02: There is no difference in the variation of indicators between Pre and Post – SHG situations; socio-economic
  • 24. Chapter-4: Survey of Literature The female borrowers in microfinance programmes are able to generate employment at a rate equal to or greater than men, because employment stability is greater in female-operated enterprises is also significant in poor countries in which the loss of a job can have negative impact for family welfare (Wydick,
  • 25. 2002). A positive impact on employment and household welfare is observed as the target members are becoming financially dependent on microfinance programme. The programme has greatly benefited women in the rural areas and semi-urban areas, where specific targets have been set for their empowerment (Makina and Malobola, 2004). 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 women’s participation in microcredit programs helps to increase women’s empowerment. Credit programs lead to women taking a greater role in household decision making, having greater access to financial and economic resources, having greater social networks, having greater bargaining power vis-a-vis their husbands, and having greater freedom of mobility. The effects of male credit on women’s empowerment were generally negative. The presence of male microcredit programs had a negative effect on an overall measure of empowerment for eligible households and specifically on women’s control of resources, finance, freedom of movement and development of networks, and on fertility and parenting decisions (Pitt; Khandker and Cartwright, 2006). 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,
  • 26. management ability, self-confidence, change in behaviour 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). There is a significant increase in the women empowerment of the SHG members group. No such significant change is observed however, for the members of the control group. The SHG members are empowered by participating in the microfinance program in the sense that they have a greater propensity to resist existing gender norms and culture that restricts their ability to develop and make choices (Swain and Wallentin, 2007). 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 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
  • 27. 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 study strongly support the role of economic factors and financial confidence gained from participation in the SHG program in empowering women. Management and behavioural changes within the respondent and the household are other important factors leading to empowerment of women. For the control group however, only managerial decision-making and behaviour is significant factors (Swain and Wallentin, 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 Post-SHG 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
  • 28. positively in the increase of income, assets position, savings, and literacy and in the reduction of migration. The expenditure pattern was altered for 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). The empirical study reveals that female SHGs performed better in terms of loan recovery than other types of SHGs. The female SHGs also stood out as doing extremely well in financial management practices such as maintaining book accounts and pass books and updating them regularly. On the issue of sustainability of SHGs as explained by long-term performance, the econometrics results reveal that only female SHGs were sustainable. The all-female SHGs were sustainable because they were more focused and united, adhere to basic objectives of groups, utilize borrowed funds for different productive activities, and are highly concerned about the well-being of their children and family members. Further, female SHG members took membership in the group as a means to educate themselves and confront social, political, and economic problems. On the other hand, members of all-male SHGs have ego problems, work for their own interest, and do not follow the basic objectives and goals of group formation. As a result, they are most irregular in loan repayments and perform badly in economic and managerial activities (Parida and Sinha, 2010). The empirical results show that microfinance brought psychological and social empowerment than economic empowerment. The
  • 29. respondents are well empowered than their counterparts. Age and education is not having any influence on empowerment as well as on managerial skill development among rural women. Impact of micro finance is appreciable in bringing confidence, courage, skill development and empowerment but there is no positive impact in sustainable rural development especially reduction of poverty, creation of employment opportunities and creation of assets in rural areas. There is appreciable development in planning, coordination, decision making and financial skills among the leader respondents. But the effect of microfinance on communication, organizing, competency and technical, marketing skills and entrepreneurial skills is moderate only. There is a definite improvement of managerial skills; psychological well being and social empowerment among rural women as a result of participating in microfinance through SHG programme (Rajendran and Raya, 2010). However some of 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. At the same time some other researchers found that the microfinance interventions had little impact, where as other researchers found out the negative impact of microfinance. So the positive impact of microfinance can not be generalized and universally accepted. The most of the researchers had conducted the impact assessment studies of microfinance through SHG – Bank
  • 30. Linkage towards the empowerment of the poor people between Pre and PostSHG situations. 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 Churaibari of North Tripura District of Tripura. For this purpose both open-
  • 31. ended and close-ended questionnaires have been prepared to collect necessary information to justify whether any role of microfinance programmes to empower women through capacity building. The survey has been conducted from the month of June to August , 2013. On the other hand, secondary data relating to general information about the selected SHGs Leaders has been collected from the internal records of the Churaibari Branch of Tripura Grameen Bank. Beside these few information has also been collected from the internet, journals, magazines, news papers and books etc to gather knowledge about microfinance programmes in India through SHG-Bank Linkage and Women Empowerment. In this study Stratified Random sampling technique has been used for the collection of primary data as well as for testing hypothesis between Pre and Post SHG situations. The Churaibari Branch of Tripura Grameen Bank., North Tripura District has been able to form 50 SHGs in the year 2011-12 (up to the end of July). Out of these 50 SHGs, 25 SHGs comprise entirely women and of whom 10 SHGs have been selected randomly in this study. These 10 SHGs consist of 126 members. 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 Mathematical and statistical tools like Percentage,
  • 32. Mean, Standard Deviation and paired two samples for T - test by using the software (Minitab 15.0). Chapter- 6 Analysis and Findings 6.1 General Profile of the SHG Members as well as their families Sample Size: 126
  • 33. 1.Literacy level(Pre -SHG) Literate Illiterate Literacy level(Post- SHG) Literate Illiterate 2.Maritial Status Married Unmarried 3.Caste Upper Backward 4.Nature of the families Single Joint 5.Types of house Concrete Tiles Sheet 26% 74% 80% 20% 98% 2% 38% 62% 98% 2% 3% 14% 83% Analysis and finding; 1. According to the field survey in the territory of Churaibari Branch of Tripura Grameen Bank., out of 126 SHG members literate is 26% and illiterate is 74% in pre-SHG situation. Other side post-SHG situation, literate is 80% and illiterate is 20%. Out of 126 SHG members Upper cast is 38% and backward caste is 62%. Out of 126 SHG members married is 98 %and unmarried is 2 %.Out of 126 SHG members Nature of their families is single 98% and 2% is joint. Out of the 126 SHG members the types of house of the SHG members is 3% Concrete, 14% is tiles and 83% is Sheet.
  • 34. 6.2 Poverty Level of the families of the SHG Members Sample Size: 126 Poverty level of the family Yes No Pre-SHG Post-SHG 90% 10% 4% 96% Analysis and finding; 1. Out of 126 SHG members the 90% families had poverty level and 10% had no poverty Level in Pre-SHG Situation. On the other hand presently 4% families has poverty level and 96% has no poverty level in the post-SHG situation. 6.3 Dimensions of Microfinance and Self Worthiness of the SHG Members Yes After joining the No
  • 35. SHG do you feel free? After joining the SHG whether your involvement in the decision making process of your children education, marriage and family affairs in increased? 100% 0% 100% 0% Analysis and finding: 1. All the SHG Members reported that they had no involvement in the decision making process of the family regarding children marriage and education in the Pre-SHG. 2. Out of 126 SHG members, 100% improvement has been regarding feelings of freeness to talk and their involvement in decision making process of the family regarding children education and marriage in the Post-SHG . 6.4 Socio – economic aspects of the SHG members as well as their families: Indicators i) Drinking Mean difference (-) 0.6508 S.D deference 0.7623 T value (-)9.58 Signifiance level 0.05
  • 36. Water Provision ii) Sanitation facilities iii) Square Meal Per day iv) Cloth (Dress Quality) v) Increase in Personal as well as Family Income vi) Increase in Household Savings vii) Change in Asset Ownership (-) 0.6984 0.7073 (-)11.08 0.05 (-) 0.4127 0.9145 (-)5.07 0.05 (-)0.5873 0.8126 (-)8.11 0.05 (-)0.6667 0.7483 (-)10 0.05 (-)0.6984 0.7187 (-)10.91 0.05 (-)0.6984 0.7187 (-)10.91 0.05 Analysis and finding: 1. The better significant improvement has found in the variation of Drinking Water provision between Pre and Post-SHG situations since t = (-) 9.58, Mean difference = (-) 0.6508, Standard Deviation difference = 0.7623 with 0.05 significant level. 2. The better significant improvement has found in the variation of Sanitation Facilities between Pre and Post-SHG situations since t = (-) 11.08, Mean difference = (-) 0.6984, Standard Deviation difference = 0.7073 with 0.05 significant level. 3. The better significant improvement has found in the variation of Square Milk Per Day between Pre and Post-SHG situations since t = (-) 5.07, Mean
  • 37. difference = (-) 0.4127, Standard Deviation difference = 0.9145 with 0.05 significant level. 4. The better significant improvement has found in the variation of better Dress Quality between Pre and Post-SHG situations since t = (-) 8.11, Mean difference = (-) 0.5873, Standard Deviation difference = 0.8126 with 0.05 significant level. 5. The better significant improvement has found in the variation of Personal as well as family Income Level of the between Pre and Post-SHG situations since t = (-) 10.00, Mean difference = (-) 0.6667, Standard Deviation difference = 0.7483 with 0.05 significant level. 6. The better significant improvement has found in the variation of Household Savings Pre and Post-SHG situations since t = (-) 10.91, Mean difference = (-) 0.6984, Standard Deviation difference = 0.7187 with 0.05 significant level. 7. The better significant improvement has found in the variation Change in assets ownership between Pre and Post-SHG situations since t = (-) 9.58, Mean difference = (-) 0.6508, Standard Deviation difference = 0.7623 with 0.05 significant level. Chapter – 7
  • 38. Conclusion It has observed that along with economic empowerment, group members are well being empowered socially in the Post-SHG, which ensures the optimum standard of living of the group members. One of the important aspects of microfinance programme is to establish rights, status and decision making ability of women in the family. No group members had decision making ability in the family in the Pre-SHG. But microfinance programme has changed the scenario and able to fulfill the objective of the programme. Now all the group members are taking decisions relating to children education and marriage. All the SHG members told that they had no feelings freely to talk in society, but now they have achieved this feeling after joining the SHG. Another major aspect of the microfinance programme is to develop the backward, oppressed, under privileged and deprived classes in the society. The microfinance programme has also been able to attain this objective in the study area since maximum number of group members belong from the backward section of the society. During the field survey the group members told that they were dependent on the informal money lenders in the Pre-SHG. Now they are freed from the clutches of informal money lenders through microfinance programme. However, rural women in the study area have well been empowered economically and socially through the microfinance programme.
  • 39. 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. 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. 4. Makina, D and Malobola, M.L. (2004). Impact assessment of microfinance programmes, including lessons from Khula Enterprise Finance. Development Bank of South Africa , XXI (5), 799-814.
  • 40. 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. Parida, P.C and Sinha, A. (2010). Performance and Sustainability of Self-Help Grpoups in India: A Gender Perspective. Asian Development Review , XXVII (1), 80-103. 8. Pitt, M.M ; Khandker, S.R and Cartwright, J. (2006). Empowering women with Microfinance: Evidence from Bangladesh. Economic Development and Cultural Change , 791-831. 9. Rajendran, K and Raya, R.P. (2010). Impact of microfinance: An empirical study on the attitude of SHG Leaders in Vellore District (Tamil Nadu, India). Global Journal of Finance and Management , 59-68. 10. Sinha, F. (2005, April). Access, Use and Contribution of Microfinance in India: Findings from a National Study. Economic and Political Weekly , 1714-1719. 11. 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.
  • 41. 12. Swain, R.B and Wallentin, F.Y. (2007, August). Does Microfinance empower women? : Evidence from Self Help Groups in India. Working Paper Series 2007:24 , 1-26. 13. Swain, R.B and Wallentin, F.Y. (2008, November). Economic or Non-economic factors - what empowers women? (N. Gotifries, Ed.) Working Paper Series 2008:11 , 1-34. 14. Wydick, B. (2002). Microfinance among the Maya: Tracing the progress of borrowers. Development and Change; Institute of Social Studies , XXXIII (3), 489-509.
  • 42. Annexure – II Sample Questionnaire (The information collected from the respondent will strictly be used for academic purpose only) 1) Name of the Group member: 2) Name of the group: 3) Education: Pre-SHG: (a) Literate (Specify Level of Education: ) (b) Illiterate Post-SHG: (a) Literate (Specify Level of Education: ) (b) Illiterate 4) Marital Status: (a) Married (b) Unmarried (c) Separated (d) Widow (e) Separated 5) Caste: (a) Upper caste (b) Backward caste (Specify: 6) Nature of the Family: 7) Type of the House: ) (a) Single (b) Joint (a) Concrete (b) Thatched (c) Tiles (d) Sheet 8) Poverty level of the respondent: Pre-SHG: Yes / No Post-SHG: Yes / No 9. Microfinance and Self Worthiness of the SHG members: i. ii. After joining the SHG do you feel free? (a) Yes (b) No After joining the SHG whether your involvement in the decision making process of your children education, marriage and family affairs in increased? (a) Yes (b) No
  • 43. 10. Socio – economic aspects of the SHG members as well as their families: Pre-SHG Post-SHG Drinking Water Provision Yes No Yes No Sanitation facilities Yes No Yes No Square Meal Per day Yes No Yes No Asset Ownership Change Yes No Yes No Increase in Income Yes No Yes No Increase in Savings Yes No Yes No Change in Dress Quality Yes No Yes No 11. Whether are you facing any problem after joining Microfinance Programme? Yes / No a) Please mention the different types of problems: i) ii) b) Do you have any suggestion towards the Bank to promote Microfinance programme in better way? Please mention i) ii)