Microfinance & Pandyan Grama Bank model

7/29/2019 Microfinance & Pandyan Grama Bank model

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Pandyan Grama Bank

Model

Group-6Augustine

Kartikeya

Nayan

Paritosh

Pawan


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Agenda

Some facts about the bank

Objectives, Functions

Strategy

Impact of microfinance

SHG winning stories Sense of social upliftment

Sharing the griefs

Milestones & Objectives achieved

Reasons But, everything is not so easy

Criticisms and Suggestion


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Known-Unknown

Public sector scheduled bank under RegionalRural Banks Act 1976.

Established on 9th March 1977, Head

Quarters at Sattur, then shifted toVirudhunagar, Tamilnadu state in SouthIndia.

Issued and Paid up Share Capital is Rs

1Crore, held by Government of India(50%),Government of Tamilnadu (15%) andSponsor bank - Indian Overseas Bank (35%).


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Management expertise by IOB

Operations

15 Distt 213 Branches

5 Regional offices

985 Employees

Continuous record of Profit. Total

Reserves exceed Rs 186.23 Crores.


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Objectives

The Primary objective of the Bank is to

finance farm & non-farm sectors and other

employment generation programs.

To empower rural womens.

To meet the varied requirements of the

discerning investor

To promote/generate additional

employment in rural areas through credit.


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Functions

Creating self help group.

Poverty alleviation program like

IRDP,MAPP, & TAHDCO schemes.

Cater to the financial needs of the rural

people.


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Strategy of PGB

Lending Strategy Six months in convening regular meetings

Keeping the records

Maintenance of records

Utilization of group saving & recovery thereon

Grading of SHGs by official

Group members also covered under variousinsurance schemes by LIC.

Eligible groups recommended for assistance SGSY Children's of the members benefitted with

scholarships


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Impact of micro-finance on

Banks profitability

Transaction cost minimized

Improvement of credit portfolio and

profitability

Good recovery rate

Loss-incurring branches turned the corner


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SHG winning stories

Took plot a land on lease & took up

floriculture.

Purchased a power tiller & started hiring it

out

Started departmental store.

Contract business Handicrafts businesses, SSI & Xerox

centres


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Sense of social upliftment

Eradication of liquor menace

Transportation assistance

Drinking water assistance Childrens education


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Sharing the griefs

Consolation meeting in bad phase

Relief material mobilized


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Milestones

Deposits crossed Rs 2497 Crores

Credit crossed Rs 3275 Crores

Operating profit ofRs 66.83 Crores

Achieved a recovery percentage of96 %

Disbursed a sum ofRs 4058 Crores during Aprilto Mar 2012 for various farm & non-farm activities.

Opened 10 New Branches

NABARD has awarded "A" rating to PGB for theperformance.

Bank is Corporate Agent of LIC of India andUnited India Insurance Company, the first RRB.

Source:-Bank website (http://pandyangramabank.in/home.asp)


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Objective Achieved

NABARD approved PGB to act as a SHGpromoting institutions

The bank so far has lent to 1,15,194 self helpgroups involving Rs 819.81 crore.

It has also issued 3,86,034 Kisan credit cardsinvolving Rs 615.63 crore

Winner ofBest performance award fromNABARD

Recognized as a Model Institution by NABARDfor hosting Exposure visits on SHGs.

http://www.thehindubusinessline.com/industry-and-economy/banking/pandyan-grama-bank-to-open-atms-17-more-branches/article4256192.ece


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Reasons behind all this

Close interaction among the members.

Unity and collective efforts in their aims (or) goals.

Financial independence

Greater awareness about useful skills and variousgovernment programmes

Arresting alcoholism in their localities

Eradicating the usurious transaction in their

villages Awareness about legal marriage age, remarriage,

child marriage, dowry, etc.


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Everything is not so easy

Default in loan repayment

Marketing problem

Availability of raw materials Unskilled labour Force

Entrepreneurs development

programmeSource:-

Report by Fisheries College And Research

Institute, Performance Analysis of fisherwoman

SHG in Tamilnadu


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Criticisms against microcredit

They are offered as the solutions or panacea to eradicate poverty.

Poor are asked to look after themselves. Coercion and high rate of interest exist

It does not serve thepoorest of the poorwho remain the unreached.

About 95 % SHGs in India are women and men are left out not bythe MFIs but by men themselves who are responsible for very

limited success men SHGs. But, the microcredit availed by women, reaches such men who oftenmisuse itand the repayment burden rests on women only.

NGOs are illegally engaged in mobilizing money from the public ordistributing their loan money in the garb of microcredit to the ruralpoor.

SHGs movement is being politicized and run the risk of beinghijacked by politicians.Source:-

Report by Fisheries College And Research

Institute, Performance Analysis of

fisherwoman SHG in Tamilnadu

S ti f f t


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Suggestion for future

micro-credit delivery

Microcredit interest rate should be reduced.

Loan repayment instalment term should be increased.

Flexibility in loan repayment to suit change in theiroccupation structure and varying levels of income and

savings. Providing subsidy loan for fisherwomen SHGs for

innovative projects.

Providing self employment loan for individual SHGmembers.

Providing marketing facilities to the SHG products(Proper marketing channel could be arranged by theGovernment (or) NGO (or) private institutions).

Providing self employment training to the rural people.


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Microfinance & Pandyan Grama Bank model