Sec Presentation Micro Finance

8/14/2019 Sec Presentation Micro Finance

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A Report on Growth ofA Report on Growth of

Micro-finance Sector inMicro-finance Sector inIndiaIndia

Given ByProf. S.

Prakash

Presented By

Kaushik Dutta


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INTRODUCTION EVOLUTION OF MICROFINANCE IN INDIATHE PROFILE OF MICROFINANCE IN INDIA METHODOLOGY

FINDINGS CONCLUSIONS SUGGESTIONS BIBLIOGRAPHY

CONTENTCONTENTSS


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NNMicro-Finance is emerging as a powerful instrument

for poverty alleviation in the new economy. In India,micro-Finance scene is dominated by Self HelpGroups (SHGs) - Banks linkage Programme, aimedat providing a cost effective mechanism for

providing financial services to the 'unreached poor'.Based on the philosophy of peer pressure and groupsavings as collateral substitute, the SHGprogramme has been successful in not only

designing financial products meeting peculiar needsof the rural poor, but also in strengtheningcollective self-help capacities of the poor at thelocal level, leading to their empowerment


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volution ofvolution oficrofinance in Indiaicrofinance in India

(Microfinance has been in practice for ages though).informallyLegal framework for establishing the -o operative

ovement .set up eserve Bank of India Actprovided for the

establishment of the gricultural Credit.Department

ationalisation of banks . egional Rural Banks .created

,rameen Bank Mohhamad YunusNABARD established as an pex agency for ruralfinance .

Passing of - .utually Aided Co op Act in AP in 1995.

19041934

19691975

19821995

1976


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The scenario Estimated that 350 million people live BelowPoverty Line in india.

This translatesto approximately 75 millionhouseholds.

Annual credit demand by the poor in the countryis estimated to be about Rs. 60,000 crores.

Cumulative disbursements under all microfinanceprogrammes is only about Rs. 5000 crores.(Mar.

04)Total outstanding of all microfinance initiatives inIndia estimated to be Rs. 1600 crores. (March04)

Only about 5 % of rural poor have access to

microfinance.

TheThe Profile of Microfinance inProfile of Microfinance inIndiaIndia


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Government promoted microfinance programmes(Rashtriya Mahila Kosh, Velugu Project, DPIP,

Swashakti)Large scale NGO initiatives (DHAN, Maryada, CARE)

Financial sector initiatives Commercial Banks(ICICI,Oriental Bank of Commerce, ABN AMRO,Canara Bank,etc.) and Development financialinstitutions (HDFC,SIDBI, NABARD, etc.)


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FI* Total # of Active Borrowers (2007)**

Spandana 916,261

Share 826,517

SKS 513,108

Bandhan 449,304

ML 416,829

Micro credit Foundation of India (MFI) 410,329

KAS 410,329

Cashpor 201,692

BISWA 200,912

op MFIs by Number of Activeop MFIs by Number of Activeorrowers in indiaorrowers in india


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Data have been find out by googling in different

websites and searching in different magazinesand journals.

METHODOLOGYMETHODOLOGY


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%About 56 of the poor still borrow from.informal sources

%70 of the rural poor do not have a depositaccount

%87 have no access to credit from formal

.sources

%Less than 15 of the households have any kind

.of insurance

Negligible numbers have access to health( . %) ( . %).insurance 0 4 and crop insurance 0 2

FINDINGFINDINGSS


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Considerable gap between demand and supplyfor all financial services

Majority of poor are excluded from financialservices. This is due to, inter-alia, the followingreasons:

Bankers feel that it is fraught with risks and

uncertainties.

High transaction costs

FINDINGSFINDINGS


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The potential for growing micro finance

institutions in India is very high. Major cross-section can have benefit if thissector will grow in its fastest pace.

Annual growth rate of about 20 % during the next

five year. The loan outstanding will consequently grow from

the present level of about 1600 crores toabout 42000 crores.

Annual growth rate of about 20 % can be achievedduring the next five years.

CONCLUSIONCONCLUSIONSS


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Government should give more relaxation inlevying taxes to Microfinance institutions

Government as well as Microfinanceinstitutions should promote various

awareness programmes in rural areas.

SUGGESTIOSUGGESTIONSNS


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www.microfinance.com www.microfinanceinsights.com

www.microfinanceinfo.com www.rbi.com www.nabard.com

www.wikipedia.com www.google.com MAGAZINES are Yojna, Microfinance insights, Information for

development.

HYHY
http://www.microfinance.com/http://www.microfinanceinsights.com/http://www.microfinanceinfo.com/http://www.rbi.com/http://www.nabard.com/http://www.wikipedia.com/http://www.google.com/http://www.microfinance.com/http://www.microfinance.com/http://www.google.com/http://www.wikipedia.com/http://www.nabard.com/http://www.rbi.com/http://www.microfinanceinfo.com/http://www.microfinanceinsights.com/http://www.microfinance.com/

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