Abstract
Post nationalization in India, commercial banks have been participating actively in implementation of poverty alleviation programmes of the Government like the Integrated Rural Development Programme (IRDP), Small Farmers Development Agency (SFDA) for the marginal farmers and agricultural laborers and the Drought Prone Area Programme (DPAP). Experimenting with subsidized credit for the poor through these programmes has resulted in one unpleasant and tangible outcome – increased Non-Performing Assets. Group based micro finance was introduced in the country in the early 1970s, but has not picked up momentum until recent times. Banks, over time have begun adopting models that have been tried and tested by Non Government Organizations (NGOs) and Micro Finance Institutions (MFI). These institutions had the clear vision to disprove the intuition of the formal bankers that banking with the poor was a risky affair. Hence, the objective of this research is to study the growth of microfinance sector in Karnataka. They have proved beyond doubt that banking with the poor is most certainly a profitable business. They have also popularized the concept of group lending through the formation and grooming of Self Help Groups (SHGs).
References
1. Leivang, (2022-2023, Status of Microfinance in India, NABARD, PP-1-24.
2. R. Anandaraman, Dr. V. Ganeshkumar (2019). Empowerment of SHGs Women in Panruti Taluk, Cuddalore District, Think India Journal, Val-22, Regular Issue-14, PP – 12629-2633.