SHG-bank linkage programme of State Bank of India in Patna district, Bihar (a case study)

The study reveals resources of how has been dealt and where poorest of the poor can work and can stay back on their own strength. In India, the adaptation ofthe new micro finance approach by rural financial institutions assumed the form of the “Self Help Group-Bank Linkage Program.” NABARD's SHG-Bank Linkage Programme aims at providing sustainable access to financial services to the rural poor, with a focus on those who had been considered un-bankable. State Bank of India has been also the oldest and the largest commercial bank in India, has played a vital role as a market leader for this cause; having a substantial market share of around 25.55% in year 2012. In SHG-Bank Credit Linkage Programme, SBI succeeded in having credit linked. It is indeed not an impressive contribution of State bank of India in poverty eradication by SHG-Bank linkage programme. There could be various reasons for this, e.g. skewed distribution of SHGs across the districts, weak infrastructure, increasing costs and low efficiency, caste conflicts, lack of experience and capacity among the NGOs, conservative attitude of bankers towards SHGs, etc. A noble suggestive measure has been put up here at least to make roaring efforts to sensitize and have a proper implementation of the programme.