1Dr. Kamatam Srinivas, Assistant Professor and Addl. Controller of Examinations, Department of Commerce, Osmania University-500007, kamatamsrinivas@gmail.com.
2Mrs. Nelluri Subhashini, Assistant Manager, Stree Nidhi Credit Cooperative Federation Ltd, Hyderabad, Telanagana, kamatamsubhashini@gmail.com.
In the post-nationalization era, the banking system in India witnessed extraordinary growth and achieved unique outreach. SHGs are informal institutions and the primary role of SHGs is to encourage savings and credit. Useful linking of SHGs to other formal institutions becomes vital for their operation. All the SHGs are linked to nearby Banks or Co-operative societies for savings purposes. The SHGs are operating the savings accounts either with the CBs or RRBs or with Co-operative Banks. The group members are encouraged to save by inculcating in them thrift habits. The too little amounts thus saved are rotated among them to meet their growing credit needs. However, linking these groups to Banks is found necessary to enlarge their resources. NPA means booking of money in terms of bad asset, which occurred due to wrong choice of client. Its impact of reduction in profitability is low return on investment, which adversely affect current earning of bank. Difficulty in operating the functions of bank is another cause of NPA due to lack of money. The present study is focus on the performance of non-performing assets in SHG -Bank Linkage Programme in India covers the growth of SHG- Bank Linkage Programme and to assess the NPAs of SHG- Bank Linkage Programme in India. Significant rise in GNPAs, in absolute volume as well as in percentage terms, experienced massive growth, increased from 2.49 per cent to 4.51 per cent during the period 2008-19, which is negative sign to the organization. Major Reasons for NPAs were financial indiscipline, lack of economic activity and regular income, poor handholding by promoters, poor monitoring and follow up by bankers, deterioration in group dynamics and mishaps. Preventing NPAs like change in bankers? perception, continuous training to bankers, use of technology for customer interface to reduce cost and increase customer satisfaction, use by bankers of data generated in E shakti portal and customer like treatment to SHGs. There is a significant difference in the growth of SHGBank Linkage Programmeand NPAs of SHGs-BLP in India over a period.
NPAs, SHGs- Bank Linkage Programme, NABARD, Savings, Loans Disbursed, Loan Outstanding and GNPAs
