Financial performance of SHG working under micro financesin Karnataka

The banking sector has been expanded to provide credit to rural population, yet large number of population continued to remain outside the fold of their formal rural banking system. As an alternative to their delivery mechanism, idea of self-help group came into existence. In the present paper, 3 banks (Commercial bank, RRB and Cooperative banks) are selected to study the financial performance of SHG working under Micro finance in Karnataka. The performance of SHG was studied using ratio analysis. Correlation analysis used identified the relation between saving and loan received by SHG and Regression analysis used to find out women SHG contribution in total saving and Loan Disbursement. The findings reveal that the Cooperative banks has provided more loans to SHG and it saved more of SHG savings compare with other banks. Correlation results showed that there is high positive correlation between saving and Loan received of SHG. Finally regression results proved that in total annual saving and loan disbursement Women SHG playing a major role.