Microfinance: A Helping Hand (Book)

Dushyant Sethiya was born in Jabalpur, India in1985. He did schooling at St. Thomas Convent Schooland completed Bachelor’s of Engineering at MandsaurInstitute of Technology (RGPV University). He completedMSc. International Business at Leeds UniversityBusiness School (University of Leeds, England). He iscurrently working as Managing Director at SSSKS Co-operative Credit Society Ltd. Mandsaur (M.P), India.

[email protected]

About the author

Microfinance:A helping hand

First published in 2010by Discovered Authors, ISBN 978-1-905108-81-7

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Microfinance:A helping hand

By

Dushyant Sethiya

Dedicatedto

My Parents

ACKNOWLEDGEMENTS

It took me two years to research and write Microfinance: A HelpingHand and have many people to thank for help along the way.

I am thankful to Ms Nina Jennifer Kaysser (Department ofDevelopment Studies, SOAS, University of London) for editingmy work, and inspiring me to write this book. I am especiallygrateful to University of Leeds Library (Leeds, UK), East Ham Library(London, UK), Brent Council Library (London, UK), Nat NagarResearch Organization, Sitamau (M.P, India) and Mandsaur Instituteof Technology (M.P, India).

I would like to give special thanks to honorable, Mr. Digvijay Singh (EX- Chief Minister of Madhaya Pradesh, India), Mr. Ajit Jogi (Ex - ChiefMinister of Chhattisgarh, India) and Mr.Kamal Nath (Union Ministerfor Road Transport and Highways, India) for appreciating my work.

I would like to thank Mr. Richard Stead (Research Supervisor),Dr.Nicholas Forsan (Programme Director, MSc International Business)and Dr Mario Kafouros (Director of Research for International Business)at University of Leeds when I was pursuing my MSc InternationalBusiness Degree, who supervised me in the research and helped me,from selecting a research topic to data collection and the last stage ofresearch and inspired me to write this book.

For unfailing love and support I am deeply grateful to my close friend- Mr. Shyam Kumawat and Mr. Harsh Vardhan. I am especially gratefulto Pallav Sethiya and Deepshikha Sethiya - my younger siblings whowitnessed and covered many of the events in this book first hand –for reading the manuscript with the great care and giving me detailedand sensitive feedback.

I am indebted – in more ways than I can ever say – to my parents,Mr. Shyam Sethiya and Mrs. Manju Sethiya, and my uncle - Mr. OmSethiya. This book has always been for them and is dedicated to myGrandfather Late. Mr. Komal Ram Sethiya (Great Philanthropist). Dueto their continuous support I have accomplished this book on time. Iwould like to bestow my success to my parents, younger brothers andsisters( Megha, Pallavi, Divya, Mayank, Vini, and Chetan).

List of Abbreviations

MFIs Micro-financial InstitutionsSHGs Self-Help GroupsUN United NationsIMF International Monetary FundNGO Non-Governmental OrganizationMDGs Millennium Development GoalsGOI Government of IndiaSBI State Bank of IndiaRRBs Regional Rural BanksIRDP Integrated Rural Development ProgramLTV Loan-to-ValueIIMB Indian Institute of Management BangaloreIIMA Indian Institute of Management AhmedabaadSMEs Small and Medium-Sized EnterprisesNBFCs Non-Banking Financial CompaniesRNBCs Residuary Non-Banking CompaniesMNBCs Miscellaneous Non-Banking CompaniesRBI Reserve Bank of IndiaLABs Local Area BanksUCBs Urban Co-Operatives BanksPACS Primary Agricultural Co-operative SocietiesNABARD National Bank for Agriculture and RuralDevelopmentSEWA Self -Employed Women’s AssociationMFO Micro-finance OrganizationBANCO-SOL Banco-SolidarioCDFIs Community Development FinancialInstitutionsSGBL Self -Help Group Banking LinkageNREGA National Rural Employment Guarantee Act

TABLE OF CONTENTS

ACKNOWLEDGEMENTS...................................................7

LIST OF ABREVIATIONSTIONS.........................................9

INTRODUCTION...........................................................13

CHAPTER 1: THE POOR AND THEIR NEEDS......................23

CHAPTER 2: MAINSTREAM BANKS AND THEIR BUSINESSMETHODS..................................................37

CHAPTER 3: MICRO-FINANCE APPROACHES IN VARIOUSCOUNTRIES AND PERIODS...........................51

CHAPTER 4: INSTITUTIONAL STRUCTURES OFMICROFINANCE IN INDIA...........................59

CHAPTER 5: BANKING LIBERALIZATION IN INDIA...........77

CHAPTER 6: MICROFINANCE – AN INDIAN EXPERIENCE....85

CONCLUSION..............................................................95

BIBLIOGRAPHY............................................................99

INTRODUCTION

“Microfinance is an idea whose time hascome.”

(Kofi Annan, Former UN Secretary-General)

The article titled as “The History of Microfinance” displayed onGlobal Envision Website, reports that, ‘the concept ofmicrofinance is not new. Savings and credit groups that haveoperated for centuries include the “susus” of Ghana, “chit funds” inIndia, “tandas” in Mexico, “arisan” in Indonesia, “cheetu” in Sri-Lanka, “tontines” in west Africa, and “pasanaku” in Bolivia, aswell as numerous savings clubs and burial societies found all overthe world. Formal credit and saving institutions for the poor havealso been around for decades, providing customers who weretraditionally neglected by commercial banks a way to obtainfinancial services through cooperatives and development financeinstitutions.’1

Microfinance has been present in the dictionary for a long time,but it is just now that it has found its way into the real world.The authors, Thurman and Smith, mention in their renownedbook on microfinance A Billion Bootstraps, on pp.179, ‘As far backas the year 1515, Pope Leo X issued a ruling in favor oforganizations called Montes Pietatis, or Mounts of Piety, declaringthat lending to the poor is an act of mercy. These groups askedonly the nominal collateral from

15

Dushyant Sethiya Microfinance: A Helping Hand

their borrowers; as opposed to those we would today call loanshark.’2 Sarah Dyer, Assistant Director at Leonard CheshireInternational, UK, said that conventionally, microfinance wasseen as micro-credit given to the poor, to help them either byemploying the money in fruitful activities or expanding theirsmall businesses. ’In fact, microfinance is more than creditand now includes a much broader range of financial products,which can be accessed and used by both poor and verypoor people.’ The addicted users of microfinance come frompeople, who don’t have access to formal finance and are feedfrom informal finance. ‘They are generally self-employed andengage in small business enterprises such as farming, pettytrade, shop-keeping, street vending and food production.’3

In the 17th century, Mr. Jonathan Swift, a nationalist and author,pioneered the ‘Irish Loan Fund System’ in which urban andrural poor people of Ireland had easy access to collateral freemicro-loans. At the end of the 1840s, his model had spreadall over Ireland with more than 300 clients. The main notionbehind this model was to allow micro-loans for a short periodof time and to charge reasonable interest rates In the 18th

century, the different types of savings and credit concepts,which were devised in Europe, were keeping the image ofthe poor in mind such as the’ In the 1870s, the GermanStates and the Rhine province in Europe had experienced asudden and intense growth of credit unions. Later, the modelof credit unions was adapted and replicated in various partsof Latin America and continuously replicated in the rest of theworld. From the 1950s onwards, microfinance strategies andmodels have been spreading rapidly, especially in developingcountries such as Bangladesh, Russia, Brazil, and India. As ofnow, microfinance plays a significant role in development of

16

Introduction

3rd world economies, as illustrated by the Grameen Bank inBangladesh, which reveals that many poor families came outof poverty by taking microfinance loan. Microfinance beganto be known through the work of prominentmicrofinance organizations like Banco-sol, Grameen Bank,Village Banks and Self-Help Groups etc. which are playing animportant role in achieving the Milliennium DevelopmentGoals (MDGs).1

The unforgettable contribution of microfinance to economicdevelopment and poverty alleviation in India during the …last.. decade cannot be ignored. Presently, the Indian marketis flooded by promoters/providers of microfinance. Afteranalyzing the fact that poor can repay on time and have goodrepayment rate, which is revealed by Grameen Bank andhave changed the outlook of commercial banks towards poorpeople. If we look at the history of the banking sector, Indiahad some very negative experiences in the past, such as themassive loan waiver for 40 million defaulters in 1989, a riseof the nation’s fiscal deficit up to 8% of its GDP, failed effortsof poverty alleviation and women’s empowerment, economicdisparity, trade deficit, a drop in the foreign reserves, riseof foreign debt, etc. The failures of the government in thebanking domain created a gap for informal financial sources togain popularity among the rural people of India. The informalmoney sector is known under various names, as ‘Moneylender’,‘Loan shark’, ‘Private Lender’, ’Pawn Broker’, and ‘UndergroundBank’ etc, as mentioned by Zhaang and Fang, in the ChineseBusiness Review.13 To get a loan from an informal source isquite easy because they hardly ask for legal formalities suchas collateral, documentation charge or official stamps, whichare required when applying for a bankloan.

17


In 1970 an alternative financial source emerged and startedreplacing formal bank and money lenders sources gradually.This new money source, termed microfinance, provides easilyaccessible loans for poor people, with reasonable interestrates. This semi-formal money source sprouted and nourishedfrom the co-operative movement and credit union theme,which was devised a long time ago in the Western World.Noble Laureate Mohammad Yunus developed the model ofthe ‘Grameen Bank’ and the SHG model, the ‘SHGs-LinkageProgramme (SGBL)’, which was developed in India by SEWAand is continuously spreading to other developing countries,such as Brazil, Indonesia, Russia, and China. Amrita Batrawrote in an article ‘At the dawn of the year 2007, which careersare on the rise, times lists some new age careers as well assome old-age ones that are booming’ published in the Timesof India, she further argues that ‘Micro-finance primarilyrefers to the provision of financial assistance to members ofthe poorest sections of society, who otherwise do not meetthe eligibility requirements for traditional financial services.’ 4

Our book will mainly focus on ‘Microfinance in India’. AjayGupta who is the founder and CEO of ruralnaukri website inan interview conducted by Wharton B-school said - ‘Myunderstanding of rural India is a less developed countrysidewhere the infrastructure is primitive, houses are of mud orbrick but rarely painted well, the primary source of livelihoodis agriculture, employment opportunities in the organizedsector are negligible, eating choices are restricted to home-cooked, simple food, schools are far away, health facilities arerudimentary and – importantly – the youth, while energeticand ambitious, are to be playing cards the whole day.’ Onthe other side, Pankaj Gupta, Practice head - consumer &

18

Introduction

retail, Tata Strategic Management Group, said, urban Indiaaccording to the Census of India, ‘constitutes places with apopulation of more than 5,000, a population density above400 per square km, all statutory towns, that is, all places witha municipal corporation, municipal board, cantonment board,notified area council, etc. and with 75% of the male workingpopulation engaged in non-agricultural employment. All non-urban is rural’.5

The reason behind the financial exclusion of rural people fromthe banking sector is them being poor. Simply said, banks don’tconsider them as potential clients. Even the Government ofIndia has the same view and merely perceives them as grant-takers. But, a few miraculous facts of microfinance came acrossBangladesh and India which changed the government’s viewof rural people from grant takers to potential entrepreneurs.

ARUNA ROY AND NIKHIL DEY in the ‘The Hindu NewspaperMagazine : NREGA: Breaking New Ground’ said ‘The NREGA,the flagship programme of the UPA government (CongressGovernment), was revolutionary in its promise of inclusivegrowth , the right to work and the dignity of labour and arational, participatory relationship with the state. And it hasmostly delivered.’12 The Indian Prime Minister, Mr. ManmohanSingh said, ’with the allocation to NREGA increased byRs 390 billion this year, we have now to ensure that ourpeople get the best value for every rupee spent on theirbehalf. Effective oversight of these programmes is therefore,extremely important. In terms of outlays, the ministry ofrural development has the highest priority in our schemeof things and that is a measure of our commitment to do

19


all that we can to get rid of chronic poverty, ignorance anddisease which still afflict millions and millions of people of ourcountry’. ‘The programme was also making a contribution tofinancial inclusion. State governments are being encouragedto make wage payments under the programme through banksand post office accounts. Nearly 7.8 Crore of such accountshave been opened. The growing practice of making use of thefinancial institutions for disbursement of wages is one meansof reducing leakages and in often ensuring that wages arepaid in accordance with prescribed schedule’, reported by TheEconomic Times.6

Michael Chu, senior lecturer in the General ManagementUunit at Harvard Business School said in a discussion onMicrofinance with HBS alumni - ‘poverty reigns, despite thefact that since World War II organizations such as the WorldBank have poured resources into hundreds of schemes toend poverty. The World Bank alone has dispersed about $550billion since its founding in the 1940s, Chu said. Adding incontributions from the “alphabet soup” of other organizationswith acronyms such as UNDP and EBRD probably means thattrillions of dollars have been deployed with little effect.’7 Atthe world podium, International Organizations such as theWorld Bank, the United Nations (U.N.), UNDP, EBRD andNGOs collectively worked for poverty alleviation and women’sempowerment to achieve the MDGs, but were never able toachieve them. According to the United Nations website, ‘Theeight Millennium Development Goals (MDGs) – which rangefrom halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by thetarget date of 2015 – form a blueprint agreed to by all theworld’s countries and all the world’s leading development

20

Introduction

institutions. They have galvanized unprecedented efforts tomeet the needs of the world’s poorest’.8

According to World Bank, ‘The diversity of NGOs strains anysimple definition. They include many groups and institutionsthat are entirely or largely independent of government andthat have primarily humanitarian or cooperative rather thancommercial objectives. They are private agencies in industrialcountries that support international development; indigenousgroups organized regionally or nationally; and member-groupsin villages. NGOs include charitable and religious associationsthat mobilize private funds for development,distribute food and family planning services and promotecommunity organization. They also include independentcooperatives, community associations,water-user societies,women’s groups and pastoral associations. Citizen Groupsthat raise awareness and influence policy are also NGOs’.9

The article NGO Registration Methods-1 displayed onngosindia.com website, reports that NGOs are exempt fromincome tax under the charitable entitlement, which is definedunder section 2 (15) of the Indian Income Tax Act. ‘In Indianon-profit / public charitable organizations can be registeredas trusts, societies, or a private limited nonprofit company,under section-25 companies. Non-profit organizations in India(a) exist independently of the state; (b) are self-governed by aboard of trustees or ‘managing committee’/ governing council,comprising individuals who generally serve in a fiduciarycapacity; (c) produce benefits for others, generally outsidethe membership of the organization; and (d), are ‘non-profit-making’, in as much as they are prohibited from distributing amonetary residual to their own embers.10

21


Groups of different national governments and internationalbodies, such as the UN and the WB, have declared similar goalsas their priority, such as rural financial inclusions, women’sempowerment and poverty alleviation. So far, none of thegoals has been achieved. In the meantime, Mohammad Yunuswon the Nobel Prize in 2005, for his valuable work in the areaof microfinance. Professor Mohammad Yunus, a BangladeshiBanker and economist is the founder of the renowned ’GrameenBank’. He devised a new model to alleviate poverty and to makemoney at the same time. Yunus not only devised a strategyto help the poor, but also raised many out of poverty throughhis long lasting endeavour in form of the “Grameen Bank”.Since then the concept of microfinance began to emerge as anew domain for business entity and also converged interestsof the different International Organizations as an effectiveapproach. In 2005, Hindu Business Lines published an article,in which Y. S. P. Thorat, Managing Director of NABARD andGraham A. N. Wright, an international expert in microfinance,found that ‘In Bangladesh, 5 per cent of the Grameen Bank’sclients graduated out of poverty every year by participating inmicrofinance programmes and, more importantly, householdswere able to sustain these gains over time based on theShahidurR.Khandker’s 1998 seminal study for the WorldBank.’11 In 1999, a study done by ‘Save The Children’ at Hondurasrevealed that many poor families had sent their childrento school after participating in microfinance schemes. In aconference on [‘Microfinance’], Lawrence Yanovitch, Directorof Policy and Technical Assistance at FINCA International,said that, the experimental facts about microfinance revealthat microfinance doesn’t only provide financial assistanceto poor people and help to alleviate poverty, but also helpsin women empowerment because majority of itsclients are women. Additionally, it also contributes to socialand

2

Introduction

economic development as it increases consumer power, andcan contribute to a higher standard of health and educationwhich are part of the MDGs, commented by Wright and Thorat.That’s why it has attracted the attention of InternationalOrganizations and the business world.

23

BIBLIOGRAPHY

INTRODUCTION

1) Mercy Corps (2008), ‘The History of Microfinance’, Posted onApril 14, 2006, Globalenvision.org [Website]

2) Thurman E. and Smith P. (2007) ‘A Billion Bootstraps,‘Printed in the United States of America, Published by TheMcGraw-Hill Companies, pp. 178-180

3) Cindy Lewis and Susan Sygall ‘Moving Towards Inclusion’, Chapter 11: Access to Credit -- A Right, Not Just anOpportunity: Leonard Cheshire International’ By: SarahDyer, Leonard Cheshire International, Published by A MobilityInternational USA Publication sponsored by USAID

<http://www.miusa.org/publications/books/mti/chapter11>

4)Batra A. (2007), ‘At the dawn of the year2007,which careers areon the rise times lists some new-age careers as well as someage-old ones that are booming’ ,Times of India Mumbai website[Online] Section: Education Times pp.43

5) India Knowledge @ Wharton, ‘Why companies see brightprospects in rural India’

<http;/knowledge.wharton.upenn.edu/ india/art ic le.cfm?articleid=4386>

6) The Economic Times, Edition 10th Sept 2009, Miles to go onNREGA: PM

101


7) Martha Lagace (2004), Harvard Business School: WorkingKnowledge, Research & Ideas, ‘Microfinance: A Way Out for thePoor ‘, Published: June 28, 2004’

8) United Nations (2008), ‘What are the Millennium DevelopmentGoals? ‘, Un.org [Website] [Online]

9) Gdrc.org website, ‘World Bank and other definitions of anNGO’, sourced from the World Bank, 1990 and “NGOWorkshop” organized at the Asian Institute of Technology,Bangkok, October 17-21, 1988

10) Ngosindia website (2008) ‘NGO Registration Methods-1,’

11) Wright G.A.N and Thorat. Y.S.P (2005)’ Microfinance:Banking for the poor, not poor banking’, thehindubusinesslinewebsite [Online] Internet Edition Financial Daily from THEHINDU group of publications ,Tuesday, Mar 15, 2005

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CHAPTER 1: THE POOR AND THEIRNEEDS

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3) ENS ECONOMIC BUREAU (2008),’FM hikes farmer debt reliefto Rs 71,680 cr’, Saturday, May 24, 2008, Business Section,Indian Express Newspapers (Mumbai) Ltd, Indian expressWebsite

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7) Think Quest Team 00282 (2006),’ Glossary of Poverty-Related Terms’, library.thinkquest.org[Website]

8) Rutherford S. (Fifth Impression, 2004) ‘The poor And TheirMoney’, Published in India by Oxford University Press NewDelhi, pp. 1-120.

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9) Murray, S. (2008), ‘Microfinance unlocks potential of thepoor’, Sustainable Banking, Financial Times special ReportTuesday June 3, 2008, pp.4.

10) SSSKS Co-operative Credit Society Ltd. Mandsaur (M.P),India

11) Hannover, W., NABARD and GTZ (MAY 2005) ‘Impactof Microfinance Linkage Banking in India on the MillenniumDevelopment Goals’, portals.wi.wur.nl[Website][Online][Accessed on 10th June 2008] from the World Wide Web.pp1-13 <http://portals.wi.wur.nl/files/docs/ppme/05-0252.pdf>

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Answers.com [Website] [Online] [Accessed on 5th May2008] from the World Wide Web<http://www.answers.com/emergency>

CHAPTER 2: MAINSTREAM BANKS AND THEIRBUSINESS METHODS

1) Thomas Herbert Russell, A. M., Ll. D. (1916) ‘Banking,Credits And Finance’, Chapter III. The Origin Of Banking, Topic:Origin Of The Word “Bank” Publisher Whitman Publishing Co(1916).

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5) Sijtsma L. (2007), ‘Status Report Microfinance in IndiaSeptember 2007’, Netherlands Platform for Microfinance,Microfinance.nl [Website]

6) Topic: ‘State Bank of India’, International Directory ofCompany Histories, Vol.63. St. James Press, 2004

7) Business.mapsofindia [Website] Article: India Planning -‘First Five Year Plan India’

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9) Bernstein S.A (2005-06),’Managing Credit Risk inMicrolending Operations ‘, uncdf.org [Website] pp9-11

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11) Martha Lagace (2004), Harvard Business School: WorkingKnowledge, Research & Ideas, ‘Microfinance: A Way Out forthe Poor ‘, Published: June 28,2004

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12) Srinivas H (2008), ‘Money Lenders-The Business ofLending: A Typology of Money Lenders’, gdrc.org

13) Srivastava P. and Basu P. (2005) ‘Scaling-up Microfinancefor India’s Rural Poor’, WPS 3646 National Council of AppliedEconomics Research, India, World Bank PolicyResearch Working Paper 3646, June 2005, chicago.ssrn.com[Website]

14) Zhang, Y. and Fang, Q. (2005) ‘The Reasons Why InformalFinance Exists and Some Suggestions on Policy’, Aug 2005volume 4 No.8 (Serial No.26) Chinese Business Review,ISSN 1537-1506,USA,china-review.org [Website] <http://www.china-review.org/news/manage/image/10-The%20Reasons%20Why%20the%20Informal.pdf>

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CHAPTER 3: MICROFINANCE APPROACHES IN VARIOUSCOUNTRIES AND PERIODS

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Economic Literature vol.xxxvii pp.1569- 1614 (December,1999) < http://www.nyu.edu/projects/morduch/documents/microfinance/Microfinance_Promise.pdf>

CHAPTER 4: MICRO – FINANCE INSTITUTIONAL STRUCTURESIN INDIA

1)Sksindia.com Website]

2) Wanchoo (2007),’ Micro-finance in the India: the changingface of micro-credit Schemes.’ Unpublished, Mpra.ub.uni-muenchen.de[ website], pp 1-10

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17) Verma S.K (2004),’ Cooperative Centenary in India’, NewSector Magazine, Issue No.61, April/May (2004),NationalCooperative Union of India, Caledonia .Org.UK [Website]pp.1-2

18) Sijtsma L. (2007), ‘Status Report Microfinance in IndiaSeptember 2007’, Netherlands Platform forMicrofinance, Microfinance.nl [Website]

19) Mahajan V. and Nagasri G, Basix (1999),’ Building SustainableMicrofinance Institutions in India’, Session: India: The EmergingMicrofinance Market, Wednesday September, 29th,1999, Afternoon, wiwi.uni-frankfurt.de [Website]

20) Rutherford S. (Fifth Impression, 2004) ‘The poor And TheirMoney’, Published in India by Oxford University Press New Delhi,pp. 1-120.

21) Nair A. (2005), ‘Sustainability of Microfinance Self Help Groupsin India: Would Federating Help? ‘, World Bank Policy ResearchWorking Paper 3516, February 2005, wds.worldbank.org website[Online] pp 1-10

22) Manipuronline (2002) ‘Stagnant Development In North-East’,by B. Thohii Hiimai, manipuronlinewebsite]

23)Sksindia.com[website]

24) ‘SKS Microfinance may launch IPO in 2010’, Published on Fri,Mar 13, 2009, The Hindu Business Line, Online edition, www.moneycontrol.com

25) MADHAV A CHANCHANI (November 10 2008) ‘SKS

110

Bibliography

Microfinance Raises Rs 366 Cr In fourth Round’, www.vccircle.com26) Sriram, M.S and Fisher, T. (2002), ‘Beyond Micro-Creditputting development back into Micro-Finance’ Published byOxfam Oxford (U.K) and New Economics Foundation (London)at Vistaar Publications (New Delhi, India) pp.1-332

27) www.sewabank.com

28) www.travelpod.com

29) www.basixindia.com

30) Rediff.com (2009), ‘All you wanted to know about NBFCs’<http://www.rediff.com/money/2007/jul/20nbfc.htm>

CHAPTER 5: BANKING LIBERALISATION IN INDIA

1) Pranav Nambiar / DNA (Monday, August 17, 2009) ‘Everysecond loan’s from a nationalised bank’, Section : Money–Report,www.dnaindia.com

2) Mohana Dam(Jul 20, 2009) ‘Indira’s nationalisation ofbanks saved country during recession, says Pranab’ www.expressindia.com

3) Roland C. (2006) European business school,’ BankingSector Liberalization in India’, Indian Institute of CapitalMarkets 9th Capital Markets Conference Paper, papers.ssrn.com [Website]

4) Mahajan V. and Nagasri G, Basix (1999),’ BuildingSustainable Microfinance Institutions in India’, Session: India:The Emerging Microfinance Market, Wednesday September,

111


29th, 1999, Afternoon, wiwi.uni-frankfurt.de [Website]

5) Nandan Nilekani (2008),’Imagining India’, pp.1-150, firstpublished in Allen Lane by Penguin Books India 2008, printedat Gopsons Papers Ltd. Noida (India).

6) David Smith (2008), The Dragon and the Elephant, pp.60-70, printed and bound in Great Britain by CPI bookmarque,Croydon, CR) 4TD

7) Abhiman Das, Ashok Nag, Subhash Ray, ‘Liberalization,Ownership, and Efficiency Indian Banking: A NonparametricApproach’, www.gbv.de/dms/zbw/534915353.pdf

8) Bosworth B. (2008), ‘India: the Emerging Giant’, TheBrooking Institution, Washington D.C,Brookings.edu [Website] pp.1-50<http://www.brookings.edu/~/media/Files/events/2008/0214_india/20080214_india.pdf>

9) Sriram M.S. and Upadhyayula R. (2002), ’The transformationof microfinance in India: experiences, options and future’,www. iimahm.ernet.in [website]

10) Gurcharan Das (2002), ‘ India Unbound’, Printed andbound in Great Britain by Bookmarque Ltd. Croydon Surrey

11) Pranav Nambiar (2009), ’Every second loan’s from anationalised bank’ <http://www.dnaindia.com/money/report_every-second-loan-s-from-a-nationalised-bank_1282908>

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CHAPTER 6: MICROFINANCE – AN INDIAN EXPERIENCE

1) Rutherford S. (Fifth Impression, 2004) ‘The poor And TheirMoney’, Published in India by Oxford University Press NewDelhi, pp. 1-120. [Accessed from the Library of University ofLeeds]

2) The Mahatma Gandhi National Rural EmploymentGuarantee Act, www.nrega.nic.in

3) Hochberg, F.P (2002)’ Practical Help for Afghans’, The NewYork Times Published on January 5, 2002 [Online edition]Section: Opinion, http://query.nytimes.com

4) Isern J., CGAP and Porteous D. (Issue 17 / October 2005),‘Commercial Banks and Microfinance: Evolving Models ofSuccess’, uncdf.org website

5) Wright G.A.N and Thorat. Y.S.P (2005)’ Microfinance:Banking for the poor, not poor banking’, thehindubusinesslinewebsite [Online] Internet Edition Financial Daily from THEHINDU group of publications ,Tuesday, Mar 15, 2005 .

6) Parker E. (2008), ‘The Weekend Interview with MuhammadYunus: Subprime Lender’ The Wall Street Journal. (EasternEdition). Newyork.N.Y. Mar 1, 2008.pg.A.9ABI/INFORM Global

7) Kennedy-Payen, M.H and Neville P.W(issue 13/june 2005),‘Experts and Emissaries Convene to Discuss Innovations,Challenges and Future: International Year of Micro credit andGeorgetown University Conference on Microfinance’,uncdf.org [Website]

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8) Sarkar, K. (28th April, 2006, Guest Column) ‘India: A hotspotfor micro finance’, ia.rediff.com [Website] [Online] [Accessedon 6th April] from the World Wide Web<http://ia.rediff.com/money/2006/apr/28guest.htm>

9) Microfinancegateway.com Website (2007), ‘MicrofinanceIndia Investment Fair to Be Held October 9, 2007’, ACCESSDevelopment Services Series of Short Training Programs on“Investment Readiness for MFIs” To Precede Event in August2007’, [Online] [Accessed on 3rd April 2008] from the WorldWide eb.pp1-2.< http://microfinancegateway.com/files/42477_file_MF_India_Investment_Fair.pdf >

10) Aghion D.B and Murdoch J. (2005) ,‘The Economicsof Microfinance’ [Book Title] The MIT Press [Publication]Massachusetts [Place] pp.1-5 [Online]

11) Murray, S. (2008), ‘Microfinance unlocks potential of thepoor’, Sustainable Banking, Financial Times special ReportTuesday June 3, 2008, pp.4.

12) Ifmr.ac.in website (2007), ‘Microfinance India Conference-2007‘,[Online]

13) Gandhi V. and Khosla V. (2006) ’ Scaling up microfinancein India ’, the Economic Times Editorials 15th Jun, 2006 TNN[Online edition] Economictimes.indiatimes.com [Website]

14) NWP and IRC (2007) ’Microfinance for water, sanitationand hygiene’, waterland.net [Website], www.waterland.net

15) Sriram, M.S and Fisher, T. (2002), ‘Beyond Micro-Creditputting development back into Micro-Finance’ Published by

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Oxfam Oxford (U.K) and New Economics Foundation (London)at Vistaar Publications (New Delhi, India) pp.1-332

16) Lakshman, N. (2006) ’India’s BIG microfinance revolution’,Business week, 25th September 2006, Rediff.com [Website]

17) Fiorina, P. (2005) ‘Microfinance: what role for commercialbanks?’ Sept 28, 2005 France (Paris), www.celent.com

18) Microfinance Information Exchange,Inc (2006),‘Transparency and performance in Indian microfinance 2005’,www.mixmbb.org [website] , pp.1-2.

19) In.rediff.com website (2007), ‘Is microfinance a success inIndia?’ Section: Business, November 08, 2007 [Online]

20) Burgis T. (2008), ’African Farmers Sow More ProfitableSeeds’, Sustainable Banking Financial Times Special ReportTuesday June 3 2008, pp.4.

CONCLUSION

1) Menezes, F.A ‘swords and ploughshares: A Journal ofInternational Relations’, American.edu [Website] <http://www.american.edu/sis/students/sword/spring99/INDIA.PDF>

Microfinance: A Helping Hand (Book)

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