Non-Performing Assets with Banks: A Study on the Self-help Groups of the Eastern Region of India
Keywords:
Non-Performing Asset, Self-help Group, Loan Disbursement, Outstanding LoanAbstract
Self-help Group Bank Linkage Programme (SBLP) is the major effective approach to microfinance in recent years in India. Self-help groups are Financial Intermediaries which are formed by 12-25 members, the maximum of whom are women. Such women usually come from a similar background in society and mobilise their small savings and group savings so that the members are able to take monetary help in case of a financial emergency. These Self-help groups are informal groups and are not trained to maintain proper financial records; they also lack good financial management.
This paper attempts to delve into the recent savings by Self-help groups and the bank loans disbursed to them. The study also focuses on the non-performing assets generated in banks due to non-payment of the loan amount by the self-help groups. For the study Eastern region of India is selected, which comprises the states such as Andaman & Nicobar Islands, Bihar, Jharkhand, Odisha and West Bengal. Secondary data is collected for the study from the National Bank for Agriculture and Rural Development (NABARD).
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