HYDERABAD: The state government wants AP Cooperative Women's Finance Corporation (APWCFC) to work as a nodal agency for mid-way financing of women SHGs. Chief minister N Kiran Kumar Reddy said the government would provide working capital to the corporation.
According to official sources, the chief minister has already taken up the issue with the bankers and had reiterated it at the recent meeting of the state-level bankers meeting. Reddy had assured the bankers that the state would stand sort of guarantee for such loans and would extend full support and cooperation in recovery of the loans given to SHGs through the APWCFC.
The Reserve Bank of India vide their circular dated May 3, 2011 had announced that it would regulate microfinance sector and advised that bank credit to micro finance institutions extended on or after April 1, 2011 for on-lending to individuals and also to members of SHGs will be eligible for categorisation as priority sector advance under respective categories. These sectors include agriculture, micro and small enterprises.
The chief minister also felt that there was still scope for the banks to improve the coverage. The Adilabad SHG bank was quoted as an example where the performance was rated as poor during 2010-11.
The CM also has asked the bankers and the Indira Kanti Pathakam staff to gear up for achieving the SHG bank linkage target of Rs 9,082 crore during 2011-12 and also wants banks to increase the average loan size to a group from the present Rs 1.8 lakh to Rs 2.5 lakh.
Banks have financed 16.90 lakh SHGs with an outstanding amount of Rs 13,153 crore as on March 31, 2011 covering over 1.20 crore rural and urban women population. Society for elimination of rural poverty has proposed a target of Rs 1,000 crore towards bulk finance for over 500 mandal mahila samakhyas during 2011-12.
According to official sources, the chief minister has already taken up the issue with the bankers and had reiterated it at the recent meeting of the state-level bankers meeting. Reddy had assured the bankers that the state would stand sort of guarantee for such loans and would extend full support and cooperation in recovery of the loans given to SHGs through the APWCFC.
The Reserve Bank of India vide their circular dated May 3, 2011 had announced that it would regulate microfinance sector and advised that bank credit to micro finance institutions extended on or after April 1, 2011 for on-lending to individuals and also to members of SHGs will be eligible for categorisation as priority sector advance under respective categories. These sectors include agriculture, micro and small enterprises.
The chief minister also felt that there was still scope for the banks to improve the coverage. The Adilabad SHG bank was quoted as an example where the performance was rated as poor during 2010-11.
The CM also has asked the bankers and the Indira Kanti Pathakam staff to gear up for achieving the SHG bank linkage target of Rs 9,082 crore during 2011-12 and also wants banks to increase the average loan size to a group from the present Rs 1.8 lakh to Rs 2.5 lakh.
Banks have financed 16.90 lakh SHGs with an outstanding amount of Rs 13,153 crore as on March 31, 2011 covering over 1.20 crore rural and urban women population. Society for elimination of rural poverty has proposed a target of Rs 1,000 crore towards bulk finance for over 500 mandal mahila samakhyas during 2011-12.
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