Growth and distribution of microfinance in Rajasthan with reference to public and Private Banks: An approach of fgls fixed effect methods

Microfinance institutions fuel the growth of SHG-BLP in India. The present study assessed the growth and distribution of microfinance in Rajasthan with reference to public and private banks. The endogeneity model with panel data, fixed effect and FGLS application was used to assess the credit linkage programme from 2008 to 2019. The model was intended to examine the attitude and directions of a bank-linkage programme through microfinance in Rajasthan. It aimed to examine whether growth was unidirectional to NPAs and loans outstanding in Rajasthan. The study concluded that both private and public banks significantly contributed to the growth and distribution of microfinance in Rajasthan. The model found a significant association between loan disbursed and loan outstanding, number of SHGs and the past loans and recommended policy implications for improving the performance of public and private banks towards the growth of SHG-BLP in Rajasthan.