NATURE AND EXTENT OF MICROFINANCE IN HARYANA

CHAPTER - 3 NATURE AND EXTENT OF MICROFINANCE IN HARYANA In this chapter, nature, extent and progress of microfinance have been discussed related to our study area of Haryana. To analyze the status and progress of microfinance in Haryana State, it is necessary to first study its status and progress in India that is why the following discussions have been started from the country itself. A small beginning of linking 500 Self Help Groups () to banks in 1992 had now grown up to 8 million by March, 2012 in India. The initiative taken to make the traditional and formal banks to extend financial services to deprived sections through informal blossomed into a massive microfinance initiative. It has been recognized as a decentralized, cost effective and fastest growing microfinance initiative in the world which helped in enabling over 103 million poor household s access to a variety of sustainable financial services from the banking system by joining as members of. The linkage with banks has provided the members the facility of not only pooling their thrift /savings and access to credit from the banking system, but also created a platform through which they could launch a number of livelihood initiatives and also facilitate the empowerment process. 3.1 Three decades of Microfinance in India While the first decade of the program was meant to demonstrate potential of the to organize themselves and to manage their own savings and meet out emergent micro credit needs of the members, the second decade laid emphasis on establishing the replication of the model across the regions, with main focus on resource poor regions of the country. This decade also witnessed greater confidence among the financing banks to adopt the program as a potential business model thereby extending its outreach to the present level. The development planners including the Government of 65

India and the State Governments also recognized the real potential of the SHG movement in development of the poor that is why it has been made an essential ingredient of all poverty alleviation programs launched in the country. Even the private sector also started realizing the untapped potential of for deep penetration in the emerging rural markets. The turbulence which was seen in the microfinance sector in the recent past due to the mushrooming growth of Microfinance Institutions (MFIs) and their questionable ways in which they extended their outreach and credit intensification, had little effect on the popularity of SHG-Bank Linkage Program initiated by NABARD. From almost all of the linked to banks at the pilot stage from southern States, their share in the total number of linked shrank to 54 percent by March 2012, while the share of eastern States (especially, West Bengal, Orissa, Bihar) shot up to over 22 percent. The share of the northern States including Haryana is just 7 percent. The third decade of the program promises to be one of maturing the linkage program with livelihoods support, lot more innovations in the product range offered through and path breaking reforms in leveraging technology to improve efficiency while extending its outreach to more geographical regions, especially the most resource poor regions of the country. A number of countries, especially the developing ones and international agencies are turning to India to learn from its experiments with microfinance and to explore possibilities of replication of the model in other parts of the world. 3.2 Progress and Present status of Microfinance in India Nearly 8 million maintaining a balance of over 6550 crore in the savings bank accounts with various banks are estimated to have harnessed savings of over 22000 crore of which nearly 70 percent (over 15000 crore) goes for internal lending. Over 4.4 million are regularly availing credit facilities from the Banks. During 2011-12 alone, over 1.15 million groups availed loans amounting to 16535 crore from banks and together 3.4 million 66

groups have loans to the extent of 36340 crore outstanding against them with the financing banks as on 31.3.2012. As the credit availed by the groups along with their internal savings are revolved many times within the group for shorter durations, the multiplier effect makes the process much larger than the basic figures indicate. Detailed analysis of the SHG-Bank Linkage Program across the geographical spread of the country/ State of Haryana and across the financing agencies is being presented in this chapter. An update up to March, 2012 is being presented in the different tables and figures given below: Table 3.1 Progress of Self Help Group-Bank Linkage Program in India (Amount in Rs. Billion) Number of Credit Linked Bank Loan Year During the year Cumulative During the Cumulative year 1992-94 620 620.01 0.01 1994-95 1502 2122.02 0.02 1995-96 2635 4757.04 0.06 1996-97 3841 8598.06 0.12 1997-98 5719 14317.12 0.24 1998-99 18678 32995.33 0.57 1999-00 81780 114775 1.36 1.93 2001-01 149050 263825 2.88 4.81 2001-02 197653 461478 5.45 10.26 2002-03 255882 717360 10.22 20.49 2003-04 361731 1079091 18.56 39.05 2004-05 539365 1618456 29.94 68.99 2005-06 620109 2238565 44.99 113.98 2006-07 1105749-65.70 179.68 2007-08 1227770-88.49 268.17 2008-09 1609586-122.54 390.71 2009-10 1586822-144.53 535.24 2010-11 1196134-145.48 680.72 2011-12 1147878-165.35 846.07 Source: Compiled from NABARD Annual Reports (The reporting of number of credit linked (Cumulative) has been discontinued by NABARD from the year 2006-07) 67

Figure 3.1 Progress of Self Help Group-Bank Linkage Program in India Above table and figure ( since 2000-01) show the progress of Self Help Group-Bank Linkage Program in India since 1992 in respect of number of SHG credit linked and amount of loan given. It is revealed that number of SHG linked increased up to 2008-09 but started decreasing after that. The amount of loan is increasing continuously up to 2011-12. Table 3.2 and Figure 3.2 below presents Savings of and its annual growth rates with Banks as on 31 st March (2007-08 to 2011-12). Table 3.2 Savings of with Banks as on 31 st March (2007-08 to 2011-12) Years Annual Growth Rate (%) 68 Amount (Crore Rs.) Annual Growth Rate (%) 2007-08 50,09,794-3785.39-2008-09 61,21,147 22.2 5545.62 46.5 2009-10 69,53,250 13.6 6198.71 11.8 2010-11 74,61,946 7.3 7016.30 13.2 2011-12 79,60,349 6.7 6551.41-6.7 Source: Status of Microfinance in India 2008 to 2012, NABARD

Figure 3.2 Annual Growth Rates of and Savings Above table and figure show the savings of with Banks as on 31 st March for the last five years. Growth rate of number of for the last five years is 59 percent and growth rate of savings is 73 percent. There has been a declining trend in growth rates on yearly basis from 2009-10 both in the number of as well as the savings amount which indicate the falling trends in the popularity of the scheme. Table 3.3 and Figure 3.3 depict the amount of bank loan disbursed to with annual growth rates for the last five years: Table 3.3 Bank Loans Disbursed to as on 31 March (2007-08 to 2011-12) Years Annual Growth Rate (%) Amount ( Crore Rs) Annual Growth Rate (%) 2007-08 12,27,770-8,849.26-2008-09 16,09,586 31.1 12,253.51 38.5 2009-10 15,86,822-1.4 14,453.30 17.9 2010-11 11,96,134-24.6 14,547.73 0.01 2011-12 11,47,878-4.0 16,533.77 13.7 Source: Status of Microfinance in India 2008 to 2012, NABARD 69

Figure 3.3 Annual Growth Rates of SHG and Loan Amount Disbursed Above table and figure show the amount of bank loan disbursed to as on 31 st March for the last five years. There has been no increase in the number of financed for the last five years but there is also a declining trend in number of financed in a particular year from 2009-10 onwards. The amount of loan advanced has increased 87 percent in the last five years which shows that amount of loan disbursed per SHG has significantly increased. Table 3.4 depicts the bank loan disbursed to by different banks i.e., Commercial Banks, Regional Rural Banks and Cooperative Banks as on 31 st March for the last five years (2007-08 to 2011-12). It is revealed that about 60 percent financing under the microfinance has been made by the Commercial Banks whereas rest 40 percent is done by both Regional Rural Banks and Cooperative Banks in which RRBs are having a bigger share. Same position is regarding number of. 70

Table 3.4 Loan Disbursement to Bank wise Position Banks Years Commercial Banks (Public & Private Sector) % Share Amount (crore) % Share 2007-08 7,35,119 59.9 5,403.90 61.1 2008-09 10,04,587 62.4 8,060.53 65.8 2009-10 9,77,521 61.7 9,780.18 67.7 2010-11 6,69,741 56.0 9,723.55 56.0 2011-12 6,00,807 52.3 9,942.04 60.2 Regional Rural Banks 2007-08 3,27,650 26.7 2,651.84 30.0 2008-09 4,05,569 25.2 3,193.49 26.1 2009-10 3,76,797 23.7 3,333.20 23.1 2010-11 2,29,620 19.2 1,625.56 19.2 2011-12 3,04,809 26.6 5,026.05 24.8 Cooperative Banks 2007-08 1,65,001 13.4 793.52 9.0 2008-09 1,99,430 12.4 999.49 8.2 2009-10 2,32,504 15.4 1,339.92 9.3 2010-11 2,96,773 23.8 3,197.61 24.9 2011-12 2,42,262 21.1 1,566.67 15.0 Total by all Banks 2007-08 12,27,770 100 8,849.26 100 2008-09 16,09,586 100 12,253.51 100 2009-10 15,86,822 100 14,453.30 100 2010-11 11,96,134 100 14,547.73 100 2011-12 11,47,878 100 16,533.77 100 Source: Status of Microfinance in India 2008 to 2012, NABARD Table 3.5 and Figure 3.4 present the loan amount outstanding with with annual growth rates as on 31 st March (2007-08 to 2011-12) below: 71

Table 3.5 Loans Outstanding with as on 31March (2007-08 to 2011-12) Year Annual Growth Rate (%) Amount ( Crore Rs) Annual Growth Rate (%) 2007-08 36,25,941-16,999.95-2008-09 42,24,338 16.5 22,679.84 33.4 2009-10 48,51,356 14.8 28,038.28 23.6 2010-11 47,86,463-1.3 31,221.17 11.4 2011-12 43,54,442-9.0 36,340.00 16.4 Source: Status of Microfinance in India 2008 to 2012, NABARD Figure 3.4 Growth Rates of the Loan Amount outstanding with Above table and figure show the amount of loan outstanding as on 31st March for the last five years. There is 20 percent increase in the number of and 102 percent increase in the outstanding loan amount which shows that amount of loan outstanding per SHG is increasing for the last five years but there is declining trend in the number of financed after 2009-10. 72

Table 3.6 gives the savings of the with banks (Region wise and Bank wise) as under: Table 3.6 Savings of with Banks (Region-wise/Bank-wise Position) as on 31 March, 2012 (Amount in Lakh) Region Norther n Commercial Banks Saving Amount Regional Rural Banks Saving Amount Cooperative Banks Saving Amount Total of all Banks Saving Amount 196547 11859.42 98173 7293.49 114606 6123.97 409326 25276.88 North Eastern 149478 7036.69 178118 6636.83 39122 1578.23 366718 15251.75 Eastern 797483 50437.08 611880 30343.01 216351 13946.11 162571 4 94726.20 Central 354097 41434.41 405076 17741.39 53594 2182.43 812767 61358.23 Western 572755 55616.73 153232 6865.01 336100 24711.94 106208 7 87193.68 Souther n 254772 6 248913.7 0 680889 61134.20 455122 61286.81 368373 7 371334.7 0 Total 461808 6 415298.0 4 212736 8 130013.9 3 121489 5 109829.4 9 796034 9 655141.4 5 Source: Status of Microfinance 2012, NABARD Above table shows that out of 7960349 having saving account with the various banks, 3683737 (46 percent) having 3713.34 crore (57 percent) saving amount out of a total of 6551.41 crore belong to southern region of the country which shows almost fifty percent spread in the region. The participation of the northern region is very low as compared to other 73

regions of the country. Following Table 3.7 presents the loan disbursement to by Banks (Region-wise/Bank -wise position) as on 31 March, 2012. Table 3.7 Loan Disbursed to by Banks (Region-wise/Bank-wise Position) as on 31 March, 2012 (Amount in Lakhs) Region Norther n Commercial Banks Loan Amount RRB Loan Amount Cooperative Banks Loan Amount Total by all Banks Loan Amount 9505 14271.29 11331 10031.32 9915 9240.59 30751 33543.20 North Eastern 13049 11556.16 34005 29343.97 3949 4228.61 51003 45128.74 Eastern 87127 83858.60 62652 64729.50 51422 13818.04 201201 162406.15 Central 27871 38762.00 24313 29459.02 6276 2715.81 58460 70936.83 Western 46852 43955.83 15269 15366.08 38923 15963.79 101044 75285.69 Souther 41640 801800.6 15723 353675.2 13177 110700.3 n 3 1 9 6 7 9 705419 1266176.2 7 Total 60080 7 994204.4 9 30480 9 502605.1 5 24226 2 156667.2 3 114787 8 1653476.8 7 Source: Status of Microfinance 2012, NABARD Above table shows the loan disbursement to by different Banks as on 31 March, 2012. It is observed that number of and loan disbursed 74

amount is the lowest in the northern region as compared to all regions of the country whereas it is highest in the southern region. Following table gives the loan amount outstanding against as on 31 March, 2012. 75

Table 3.8 Bank Loan Amount Outstanding against (Region-wise/Bank-wise) Position as on 31 March, 2012 (Amount in Lakhs) Region Norther n North Eastern Commercial Banks Amount Regional Rural Banks Amount Cooperative Banks Amount Total of all Agency Amount 122791 72695.81 40251 25333.26 48999 48999 212041 117827.53 72674 44714.76 73366 46442.27 13376 8169.80 159416 99326.83 Eastern 468958 281204.51 427736 157857.2 0 88635 23918.13 985329 462979.84 Central 162628 183937.05 174971 88197.78 14853 5894.29 352452 278029.13 Western 172166 96946.24 39510 22909.55 77796 16522.51 16522.5 1 136378.30 Souther n 161798 2 1901530.4 9 537975 520617.7 5 19977 5 117310.3 2 2355732 2539458.5 6 Total 261719 9 2581028.8 6 129380 9 861357.8 1 44343 4 191613.5 1 4354442 3634000.1 8 Source: Status of Microfinance 2012, NABARD Above table shows the bank loan outstanding against (Regionwise/Bank-wise) position as on 31 March, 2012. Maximum amount of loan outstanding is in the southern region and minimum amount in the north eastern region of the country. The above analysis covers the broader components of the microfinance program namely savings, loans disbursed and loan outstanding performance up to March, 2012. 76

Table 3.9 gives the progress of (Saving, loans disbursed and loans outstanding) for the last three years separately for all Groups, Groups formed under SGSY and exclusive Women Groups under the SHG-Bank Linkage Program. 77

Table 3.9 Overall Progress under SHG-Bank Linkage Program for last three years (Amount in crore /Numbers in lakh) SHG savings with Banks as on 31 st March Loans disbursed to during the year Loans outstanding against as on 31 st March 2009-10 2010-11 2011-12 Particulars SHGS Amount SHGS Amount SHGS Amount Total 69.53 6198.71 74.62 7016.3 79.60 6551.41 (13.6) (11.8) (7.3) (13.2) (6.7) (-6.7) Of which SGSY Groups % of SGSY Groups to total All women 16.94 (12.5) 1292.62 (-17.3) 20.23 (19.4) 1817.12 (40.6) 21.23 (5.0) 1395.25 (-23.2) 24.4 20.9 27.1 25.9 26.7 21.3 53.10 (9.18) 4498.66 (1.46) 60.98 (14.8) 5298.65 (17.8) 62.99 (3.3) 5104.33 (-3.7) % of women groups 76.4 72.6 81.7 75.5 79.1 77.9 Total 15.87 14453.30 11.96 14547.73 11.48 16534.77 (-1.4) (17.9) (-24.6) (0.01) (-4) (13.7) Of which SGSY Groups % of SGSY Groups to total All women 2.67 (1.0) 2198 (9.1) 2.41 (-9.9) 2480.37 (12.8) 2.10 (-12.9) 2643.56 (6.6) 16.9 15.2 20.1 17.0 18.3 16.0 12.94 (5.8) 12429.37 (18.1) 10.17 (-21.4) 12622.33 (1.6) 9.23 (-9.2) 14132.02 (12.0) % of women groups 81.6 86 85 86.8 80.4 85.5 Total 48.51 28038.28 47.87 31221.17 43.54 36340.00 (14.8) (23.6) (-1.3) (11.4) (-9.4) (16.4) Of which SGSY Groups % of SGSY Groups to total All women 12.45 (27.5) 6251.08 (6.6) 12.86 (3.4) 7829.39 (25.2) 12.16 (-5.4) 8054.83 (2.9) 25.7 22.3 26.9 25.1 27.9 22.2 38.98 (18.9) 23030.36 (23.9) 39.84 (2.2) 26123.75 (13.4) 36.49 (-8.4) 30465.28 (16.6) % of women 80.3 82.1 83.2 83.7 83.8 83.8 groups Source: Status of Microfinance 2012, NABARD (Figure in parentheses is Annual Growth Rates) Under the SHG-Bank linkage program rural households have now access to regular savings through 79.60 lakh linked to banks. About 27 percent of these are formed under SGSY the rural poverty alleviation 78

program of the Government of India where predominantly households below the poverty line are members. There has been a decline in the amount of savings balance with banks to the extent of 6.7 percent in 2011-12 as compared to the previous year although the number of has shown a growth of 6.7 percent during the year. This decline is almost entirely attributable to the groups formed under SGSY where the decline was to the extent of 23.2 percent. Increasing awareness at the SHG level about the advantage of using the savings for internal loaning is also partly responsible for the decline in saving balance with banks. There is increasing trend in the amount disbursed and amount outstanding under the program. Progress under SGSY since the inception of the scheme on 1-4-1999 is given in the Table 3.10 and Figure 3.5 given below: Year Table 3.10 Physical Progress under SGSY since inception on 1-4-1999 formed Women formed Women to total formed (%) passed Grade I passed Grade II taken up economic activities SHG Swarozgari assisted 1999-00 292426 176263 60 125402 74234 29017 347912 2000-01 223265 153285 69 214011 101291 26317 318803 2001-02 434387 296175 68 176002 54040 30576 364676 2002-03 398873 221085 55 189634 94754 35525 414419 2003-04 392136 233136 59 204987 90673 50717 577532 2004-05 266230 191666 72 219604 105839 68102 788573 2005-06 276414 213213 77 210639 91920 80130 873485 2006-07 246309 176712 72 222029 156353 137931 1472066 2007-08 306688 231670 76 251163 116878 181386 1154269 2008-09 563530 404972 72 322322 138641 114452 1470032 2009-10 389259 292788 75 439275 161496 136411 1736214 2010-11 311314 207280 67 280575 171657 312288 1743726 2011-12 233713 153558 66 181070 148138 242948 1468796 Total 4334544 2951803 68 13036713 1505914 1445800 12730503 Source: Annual Report, 2012-13, Ministry of Rural Development 79

Figure 3.5 Physical Progress under SGSY since 1999-2000 Above table and figure presents the progress of microfinance under SGSY in India up to March, 2012 (since the inception of the scheme on 1-4- 1999) in respect of formed, women formed, passed in Grade I and II, undertook economic activities and number of swarozgaris assisted. It has been observed that after 2008-09 there is a declining trend in the scheme in terms of the formed, women formed, passed in Grade I and II, undertook economic activities and number of swarozgaris assisted. 3.3 Progress and Present status of Microfinance in Haryana Haryana is one of the small States of India out of the total 28 States. It came into existence on 1 st November, 1966 as a result of bifurcation of the Punjab State. At present the State consists of 21 districts. In comparison to the other States of the country, the penetration of microfinance in the State is very less perhaps due to the fact that it is considered to be one of the developed States of India. The geographical location of Haryana in the national map is given in the following Figure 3.6: 80

Figure 3.6 Geographical location of Haryana in the National Map Source: Census of India, 2011 The relative position of Microfinance in Haryana as on March 31, 2012 is given in the following Table 3.11: 81

Table 3.11 Relative Position of Microfinance in Haryana as on March 31, 2012 (Amount in crore) Particulars Number of SHG Savings Loan disbursed Outstanding Bank Loans against SHG India 7960349 6551.41 16534.77 36340.00 Haryana 44184 36.78 87.70 205.75 Share of Haryana (%) 0.56 0.56 0.53 0.57 Source: Status of Microfinance 2012, NABARD It is clear from Table 3.11 that the share of microfinance in Haryana is not even 1 percent of the country in respect of number of, savings, loans disbursed and outstanding loan amount. Comparative position of agency wise participation in SHG-Bank Linkage Program in Haryana as on 31-03- 2012 is given in the Table 3.12 and Figure 3.7 below: Table 3.12 Bank wise participation in SHG - Bank Linkage Program as on March 31, 2012 Banks Haryana India Commercial Banks % Bank Loan (Rs. Crore) % % Bank Loan (Rs. Crore) 1682 44 32.48 52 6,00,807 62 9,942.04 60 % Regional Rural Banks Cooperative Banks 2056 53 27.60 45 3,04,809 27 5,026.05 30 127 3 1.87 3 2,42,262 21 1,566.67 10 Total 3865 100 61.95 100 1147878 100 16,534.77 100 Source: Status of Microfinance 2012, NABARD 82

Figure 3.7 In Haryana, RRBs are playing a major role in disbursement of credit to as 53 percent of the have been formed and 45 percent of credit disbursed by these banks. Commercial banks have less important role in the State as compared to the country s percentage. Cooperative banks have played a very negligible role in the State as compared to the country s percentage. 83

Swaranjayanti Gram Swarozgar Yojna (SGSY) was launched in Haryana on 1 st April, 1999 as the main microfinance program. Progress of SHG-Bank Linkage program under SGSY in Haryana is depicted in the various tables and figures given below: Table 3.13 Physical Progress of SHG-Bank Linkage under SGSY in Haryana as on March 31, 2012 (Since inception of the scheme on 1-4-1999) District formed Passed Grade I Passed Grade II SHG that have taken up Eco. Activities Women formed Women taken up Economic Activities Ambala 1397 1079 762 583 783 417 Bhiwani 1186 943 874 874 591 729 Faridabad 463 336 242 194 444 194 Fatehabad 1031 1033 808 780 906 780 Gurgaon 635 411 227 225 396 158 Hisar 1633 1396 1215 1140 1016 882 Jhajhar 557 383 362 362 352 311 Jind 1972 1849 1511 1416 1141 942 Kaithal 2047 1733 1088 1088 1230 544 Karnal 1909 1668 1361 1361 945 675 Kurukshetra 1707 1366 939 939 958 605 M/garh 1152 938 578 563 672 386 Mewat 1035 707 490 350 685 349 Palwal 425 352 398 225 342 203 Panchkula 652 493 353 353 490 306 Panipat 880 761 585 546 532 513 Rewari 1717 1227 775 739 1581 699 Rohtak 1127 816 552 516 749 417 Sirsa 1567 1387 713 635 1342 516 Sonipat 1599 1099 875 875 393 249 Y/nagar 1444 1225 912 936 561 601 Total 26135 21202 15620 14700 16109 10476 Source: Compiled from Monthly Progress Reports of SGSY, Haryana 84

Figure 3.8 presents the district wise physical progress under SGSY since inception in respect of the total number of and women below: Figure 3.8 District wise Physical Progress under SGSY in Haryana 26135 are formed in Haryana as on March 31, 2012, of which 21202 have been passed in Grade I and 15620 in Grade II. 14700 have taken up economic activities.16109 formed are of women which comes out to be 62 percent. Kaithal district with 2047 has formed maximum whereas Palwal with 425 has formed minimum in the State. The percentage of women formed is only 62 percent in the State which is less than national figure of 68. Funds utilizations under the program as on March 31, 2012 in the State are given in the Table 3.14. The table shows that 96.04 percent of the funds available have been utilized for the program. 85

Table 3.14 Funds Utilizations for under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) S. No. Particulars Lakhs (Rs.) 1. Allocation of funds 3388.00 2. Centre 2541.00 3. State 847.00 3. Funds released 3332.76 5. Total funds available 3638.29 6. Expenditure 3494.33 7. % of Expenditure 96.04 Source: Compiled from Monthly Progress Reports of SGSY, Haryana The expenditure incurred on various items is given in the table below: Table 3.15 Expenditure Incurred under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) (Lakhs Rs.) S. No. Expenditure on Amount 1 NGOs/Facilitators 54.40 2 Basic Orientation Program 166.68 3 Skill development 104.28 4 Infrastructure Development 609.12 5 Marketing 0.78 6 Revolving Fund 193.73 7 Subsidy 2356.34 8 Risk Fund 8.99 9 Formation of Federations 0.00 Total Expenditure 3494.33 Source: Compiled from Monthly Progress Reports of SGSY, Haryana The above table shows that very small amount has been spent on 86

marketing, NGOs/Facilitators, revolving fund and risk fund where as no amount has been spent on formation of federations which are vital for the success of the microfinance program. It has been provided in the SGSY guidelines that at least 10 percent of the funds should be utilized for training and skill development and 10 percent for revolving fund but the same has not been adhered to in the State. A huge amount of Rs.2356.34 Lakhs (67 percent) has been spent on subsidy. Credit disbursed to in the State is given in the Table 3.16 below: Table 3.16 Credit Disbursed to under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) Total Credit Target: 7130.00 (Lakhs Rs.) S. No. Particulars Amount 1 Credit disbursed 8770.28 2 Subsidy 2396.43 3 Total investment 11166.71 4 SC 4831.40 5 Women 7277.19 6 Minorities 918.84 7 Disabled 111.90 8 Subsidy to credit ratio 3.66 9 Per family Investment Rs.45614 Source: Compiled from Monthly Progress Reports of SGSY, Haryana An amount of 8770.28 lakh has been disbursed in the State against the target of 7130 which comes out to be 123 percent. 55 percent credit has been disbursed to the SC and 93 percent to the women which shows that women are the main beneficiaries under the scheme. Per family investment comes out to be Rs. 45613. Bank wise credit disbursed to under SGSY for the year 2011-12 is given in following Table 3.17: 87

S. No. Table 3.17 Bank -wise Credit Disbursed to under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) (Lakhs Rs.) Name of District Commercial Banks Credit Disbursed by Cooperative Bank Regional Rural Bank Other, if any Bank Total by all Banks 1 Ambala 304.97 0.00 79.26 0.00 384.23 2 Bhiwani 255.70 87.07 331.08 0.00 673.85 3 Faridabad 12.09 0.15 77.22 0.00 89.46 4 Fatehabad 162.00 89.47 34.00 0.00 285.47 5 Gurgaon 6.45 5.37 127.06 0.00 138.88 6 Hisar 394.80 118.40 72.40 2.00 587.60 7 Jhajhar 227.08 25.24 70.21 0.43 322.96 8 Jind 884.52 0.00 0.00 0.00 884.52 9 Kaithal 216.13 0.00 0.00 0.00 216.13 10 Karnal 311.52 0.00 0.00 0.00 311.52 11 Kurukshetra 776.35 0.00 164.01 0.00 940.36 12 Mahendergarh 46.07 10.81 118.84 0.00 175.72 13 Mewat 84.70 21.90 188.67 0.00 295.27 14 Palwal 31.85 6.18 179.21 0.00 217.24 15 Panchkula 78.50 14.50 25.91 0.00 118.91 16 Panipat 258.99 0.00 0.00 0.00 258.99 17 Rewari 153.05 100.62 166.73 0.00 420.40 18 Rohtak 242.56 2.80 113.43 1.90 360.69 19 Sirsa 160.00 154.00 101.54 0.00 415.54 20 Sonipat 1033.61 0.00 65.51 0.00 1099.12 21 Yamunanagar 527.24 0.00 46.18 0.00 573.42 Total 6168.18 636.51 1961.26 4.33 8770.28 Source: Compiled from Monthly Progress Reports of SGSY, Haryana Bank wise credit disbursed to under SGSY for the year 2011-12 is also shown with the help of following Figure 3.9: 88

Figure 3.9 Credit Disbursed to by different Banks in Haryana Above table and figure shows that commercial banks are the major providers of credit to in the State as their contribution is 70 percent of the total credit given during the year 2011-12. RRBs have contributed 22 percent and cooperative banks 7 percent only. Maximum credit of 1033.61 lakh has been given in the Sonipat district and minimum of 6.45 lakh in the Gurgaon district. The sector wise physical coverage of members of and individual swarozgaris under SGSY is given in the following Table 3.18 and Figure 3.10: 89

Table 3.18 Sector wise Physical Coverage of Members of and Individual Swarozgaris under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) (Lakhs Rs.) Primary Sector Secondary Sector S. Name of Tertiar Total No. District Irrigatio n Live Stoc Other s Sub Total Villag e Hand i Handloo m Other s Sub Tota y Sector k Indst. Craft l 1 Ambala 0 1042 2 1044 0 0 0 0 0 191 1235 2 Bhiwani 0 1920 0 1920 20 0 0 284 304 19 2243 3 Faridabad 0 64 0 64 50 0 0 11 61 215 340 4 Fatehabad 0 1210 0 1210 0 0 0 106 106 0 1316 5 Gurgaon 0 427 0 427 1 0 0 2 3 57 487 6 Hisar 0 824 0 824 0 0 0 645 645 0 1469 7 Jhajhar 0 415 25 440 31 1 0 282 314 5 759 8 Jind 0 2267 10 2277 0 0 0 163 163 0 2440 9 Kaithal 0 820 0 820 0 0 690 0 690 0 1510 10 Karnal 0 499 0 499 0 0 0 1120 1120 0 1619 11 Kurukshetr a 0 1283 0 1283 0 0 0 67 67 126 1476 12 M/garh 0 457 0 457 0 0 0 653 653 0 1110 13 Mewat 0 948 0 948 5 0 0 0 5 72 1025 14 Palwal 0 164 1 165 0 0 0 0 0 721 886 15 Panchkula 0 170 148 318 3 0 2 47 52 0 370 16 Panipat 20 499 6 525 0 68 0 0 68 257 850 17 Rewari 0 733 0 733 151 0 0 0 151 22 906 18 Rohtak 0 555 5 560 0 0 0 31 31 5 596 19 Sirsa 0 973 100 1073 0 0 0 10 10 0 1083 20 Sonipat 0 1331 0 1331 0 0 0 14 14 0 1345 21 Y/nagar 0 1282 124 1406 0 10 0 0 10 0 1416 Total 20 1788 421 1832 261 79 692 3435 4467 1690 2448 90

3 4 1 Source: Compiled from Monthly Progress Reports of SGSY, Haryana Figure 3.10 Sector wise Physical coverage under SGSY in Haryana In the primary sector maximum members has been financed for the live stock with exception of 20 members for irrigation and 421 for other allied activities. In secondary sector maximum members has been financed for other secondary sector activities such as kariyana and maniari shop etc. with very limited finance for handicraft, handloom and village industry. 1690 members have been financed in the tertiary sector. It is observed that there is no diversification of activities for financing. Sector wise Total Investment (Subsidy + Credit) to and 91

individual swarozgaris is given in the following Table 3.19 and figure 3.11: 92

S. No. Table 3.19 Sector wise Total Investment (Subsidy + Credit) disbursement to and Individual Swarozgaris under SGSY in Haryana as on March 31, 2012 (Plan Year: 2011-12) (Lakhs Rs.) Name of District Irrigatio n Primary Sector Live Stock Other s Sub Total Village Industri es Secondary Sector Hand i Craft Handloo m Others Sub Total Tertiar y Sector 1 Ambala 0.00 386.62 32.00 418.62 0.00 0.00 0.00 0.00 0.00 77.26 495.88 2 Bhiwani 0.00 802.78 0.00 802.78 7.55 0.00 0.00 107.98 115.53 8.01 926.32 3 Faridabad 0.00 26.88 0.00 26.88 18.85 0.00 0.00 3.13 21.98 73.65 122.51 4 Fatehabad 0.00 363.35 0.00 363.35 0.00 0.00 0.00 53.00 53.00 0.00 416.35 5 Gurgaon 0.00 164.20 0.00 164.20 0.50 0.00 0.00 1.00 1.50 22.60 188.30 6 Hisar 0.00 405.19 0.00 405.19 0.00 0.00 0.00 317.06 317.06 0.00 722.25 7 Jhajhar 0.00 226.10 12.00 238.10 14.60 0.50 0.00 133.94 149.04 3.50 390.64 Total 8 Jind 0.00 1036.3 4 0.00 1036.3 4 0.00 0.00 0.00 72.95 72.95 0.00 1109.29 9 Kaithal 0.00 197.66 0.00 197.66 0.00 0.00 162.57 0.00 162.57 0.00 360.23 10 Karnal 0.00 117.00 0.00 117.00 0.00 0.00 0.00 350.10 350.10 0.00 467.10 11 Kurukshet ra 0.00 997.88 0.00 997.88 0.00 0.00 0.00 10.72 10.72 86.48 1095.08 12 M/garh 0.00 123.21 0.00 123.21 0.00 0.00 0.00 162.75 162.75 0.00 285.96 13 Mewat 0.00 378.78 0.00 378.78 2.00 0.00 0.00 0.00 2.00 23.10 403.88 14 Palwal 0.00 95.66 00.51 96.17 0.00 0.00 0.00 0.00 0.00 208.27 304.44 15 Panchkula 5.00 66.50 56.83 128.33 0.80 0.00 2.00 22.10 24.90 0.50 153.73 16 Panipat 8.00 173.61 2.40 184.01 0.00 27.20 0.00 0.00 27.20 122.40 333.61 17 Rewari 0.00 409.04 0.00 409.04 100.91 0.00 0.00 0.00 100.91 15.58 525.53 18 Rohtak 0.00 406.83 2.94 409.77 0.00 0.00 0.00 15.42 15.42 1.75 426.94 19 Sirsa 0.00 465.00 54.50 519.50 0.00 0.00 0.00 0.50 0.50 0.00 520.00 20 Sonipat 0.00 1218.5 0 0.00 1218.5 0 0.00 0.00 0.00 0.00 0.00 0.00 1218.50 21 Y/nagar 0.00 490.81 209.3 700.20 0.00 0.00 0.00 0.00 0.00 0.00 700.20 93

9 Total 13.00 8551.9 370.5 8935.5 145.21 27.70 164.57 1250.6 1588.1 643.10 11166.7 4 7 1 5 2 3 Source: Compiled from Monthly Progress Reports of SGSY, Haryana Figure 3.11 Sector wise financial coverage under SGSY in Haryana Above table and figure show the sector wise total investment (Subsidy +Credit) disbursement to and individual swarozgaris under SGSY in Haryana as on March 31, 2012. It is clear from the table that 80 percent of the total investment under the scheme has been done in the primary sector. The share of the secondary and tertiary sectors together constitute 20 percent of the total investment which means that these sectors are not getting due share in the total investment in the State. From the above discussion it is evident that Haryana is lagging behind in the outreach of the scheme of microfinance. Even within the State some districts are doing well whereas some are lagging behind. Four districts namely Kaithal, Kurukshetra, Hisar and Fatehabad have been selected for the present study because of their past performance and outreach of microfinance 94

which required evaluation and is the subject matter of chapter 4. References: 1. Status of Microfinance in India 2011-12, Nabard Bombay: http : // www.nabard.org 2. www.haryanarural.gov.in. 3. Website of Ministry of Rural Development, Government of India, www.rural.nic.in 4. Statistical Abstract, Haryana 2011-12, Government of Haryana. 5. www.nird.org.in 6. www.rbi.org 95