Performance of Different Financial Institutions in the Perspective of Microfinance in Sitai Block of West Bengal

Microfinance through Self-Help-Groups (SHGs) has become one of the crucial instruments in India for socio-economic development of rural poor masses through the provision of mobilization of savings and accession of micro-credit to generate self employment and income by the groups. The study attempt to scrutinize the performance of different Financial Institutions in connection with phase-wise progress of SHGs from saving linked to project linkage up to the FY 2012–13. The study was conducted in Sitai Block of Cooch Behar district West Bengal. The data was collected through personal interview with the officials of different banks and also from DRDC, Block and Gram Panchayat. The study revealed that under SGSY only one RRB(UBKGB) one CB(CBI) has taken leading role in growth and promotion of SHGs in terms of savings and credit linkage. Although the overall rate of credit linkage to SHGs was more than 80% but the number of 2^nd grading and project linkage groups observed less than 40% and the average amount credit disbursement (‘15000) revealed very low. Further, more than 80% of the credit has been disbursed by CBI with a higher recovery. Hence, unequal technical efficiency among the intra and inter bank’ officials co-existed. Investigation on Microfinance sponsored by NABARD revealed the slower progress in all bank branches but recovery percentage was found to be higher than SGSY scheme. Therefore, growth and development of rural people through microfinance under NABARD might be succeeded that harnesses more active participation by financial institutions along with stronger facilitating activity.