Self Help Group

As of March 2018, our bank has formed 15389 Self Help Groups (SHGs) with the objective of eradicating poverty in Hassan district. Hassan district Central Co-operative Bank has altogether 31 branches and 189 primary agricultural credit cooperative societies are serving under it.

Keeping in mind the people living below-the-poverty-line in Hassan district and with a view to develop human resources as well as the financial progress of the bank, a corpus fund has been created for the formation and management of SHGs in the District Bank. A nodal officer has been appointed for this corpus fund and at present two of the bank’s personnel are working for it.

In the financial year 1999-2000, the task of merging the SHG groups to credit linkage were commenced. In that year only 22 SHGs were carried out and in the last 18 years the District Bank has played a significant role in the formation of SHGs and credit linkage. As on ending of March 2018, under the joint patronage of the bank and the primary agricultural credit cooperative societies 15389  SHGs formed in the district under the bank’s patronage have generated savings of over Rs. 3512.13 lakhs. Foreign study teams from Vietnam in December 2003 and GTZ team from Germany in February 2004 visited and conducted study of the functioning of SHGs and express their appreciation.

The SHGs’ loan repayment track record is also very heartening and stands at 88%. As there is a need for constant training of SHG members, a total of 220 people including 120 bank employees and primary agricultural cooperative bank managers and personnel underwent ‘SHG Exposure’ training at ‘Sauharda’ Training Centre at Bidar and ‘Trainers Training’ at ‘Myrada’ Institute at Kollegal and also training by resource persons from NABARD.

With more SHGs being formed in the district, we have the responsibility to understand the SHG members, their woes and problems and work with them together as a team. Hence we maintain constant relationship with the SHG members and communicate with them regularly.

These co-operative resource units serve as a platform for disseminating education on subjects like formation of SHGs, conceptual clarity, maintaining of accounts, proper utilization of loans, formulating income generating programmes, spreading health awareness about rural men, women and children, clean village, clean environment, rainwater harvesting, conflict resolution among SHG members etc.

The bank’s Management Information System (MIS) ensures the timely reporting by all branches, primary agricultural co-operative banks and resource centres to the SHG monitoring cell at the banks’ head office by 5th of every month. These reports are computerized and furnished to Apex Bank, NABARD and ACSTI, and the success story of the SHGs has already been released.
The formation of SHGs and their business is a profitable activity for bank and in order to bring about the economic uplift of the poor, the bank has set a goal of formation of over 16,109 SHGs and disbursement of Rs. 82.15 crores loans  to the 3150 SHGs. Hassan district will be declared as an SHG district.

During 2017-18 our bank has formed 673 SHGs and there are a total of 15389 SHGs and loan of Rs. 7629.381 lakhs was disbursed among 2763 SHGs and as on 31-03-2018, loans of Rs.  6018.81 lakhs are outstanding. Recovery rate stands at 88% and efforts are being made to attain 100% recovery.

Joint Liability Groups

The programme for formation of SHGs and merger of banks pioneered by NABARD has been successful in providing financial services and support from the banking sector to extremely poor and landless people. Now to help very small farmers, small farmers, tenanted farmers, produce partners and sleeping partners, those engaged in business outside the agricultural sector, NABARD has proposed the formation of Joint Liability Groups to develop comprehensive loan schemes and disburse them.

Our bank has implemented this plan by forming Joint Liability Groups and through this scheme disburse loans for the purpose of animal husbandry.

Already for the period 2014-15, 464 groups have been formed through primary agricultural co-operative societies and among them 273 groups have been provided with loans of Rs.564.51 lakhs.

For the year 2015-16, 70 groups have been formed and loan of Rs. 103.10 lakhs has been extended to 37 Joint Liability Groups.

As on year ending 31-3-2018, total of 579 Joint Liability Groups have been formed and 362 groups have been provided with loan of Rs. 907.51 lakhs. As on year ending 31-3-2018, the outstanding loan amount is Rs. 251.82 and the recovery rate is 56%.

For the year 2018-19, we have set a goal of forming a total of 150 groups and extending loans to 100 more groups.