ABSRACT

PERFORMANCE ANALYSIS OF WOMEN SELF HELP GROUPS LINKED TO

CORPORATION BANK IN COIMBATORE DISTRICT
Name : KIRUTHIGA. S
Chairman : Dr. T. R. SHANMUGAM,

Professor

Department of Agricultural Economics,

Tamil Nadu Agricultural University,

Coimbatore-641 003

2010

The Self help group movement in India has enabled social and economic inclusion of
women. Their linkages to banks in a gradual way initially through savings and later through loan
products have been able to ensure financial inclusion to a greater extent. The objective of the
study was to study the profile of the Self Help Groups linked to the Corporation bank, to
evaluate the performance of Self Help Groups, to assess the nature and type of financial
services provided by the bank to the Self Help Groups, to assess the socio- economic impact
of the micro finance programme on the beneficiaries of the Self Help Groups and to identify
the major issues and constraints encountered by the Self help group members. Twenty four
Self Help Groups in Coimbatore district that are linked to Corporation bank were selected for
the study. Among the twenty four SHGs, eight each linked to urban, semi urban and rural
branches of the bank were selected for the study.

Results showed that among the SHGs linked to urban branches, 37.50 percent of the
sample SHGs are in the age of one to two years. In the SHGs linked to semi urban branches,
37.50 percent of the groups are in the age of three to four years. In the SHGs linked to rural
branches, 37.50 percent of the groups are two to three years old. In the SHGs linked to urban
branches, 50.00 percent were promoted by Non Governmental organizations (NGO); Among the
SHGs linked to semi urban branches, 62.50 percent were promoted by NGOs. Among the SHGs
linked to rural branches, 50.00 percent were promoted by NGOs. It could be observed that in the
SHGs linked to the urban branch, the major objective was to facilitate savings, whereas in the
SHGs linked to the semi urban and rural branches the objective was found to increase the
members’ income.

About 42.50 percent of the sample SHG members linked to the urban branch belonged to
the age group of 35 to 45 years. In the SHGs linked to semi urban branches, majority of the
sample SHG members (40.00 per cent) belonged to the age group of 35 to 45 years and in the
SHGs linked to rural branches only 37.50 per cent of members belonged to the age group of 35
to 45 years.

Majority of the sample SHG members (47.50 per cent) linked to the urban branches were
found to have education up to higher secondary level. In the SHGs linked to the semi urban
branches, 35.00 percent of the sample SHG members were educated up to high school level. But
in the SHGs linked to the rural branches, majority of the sample members were educated up to
only primary level (40.0 percent). Majority of SHG members (40.00 percent) linked to the urban
branch were having their own business as their occupation. In the SHG members linked to the
semi urban branch, majority of them (37.50 percent) were salaried women. In the SHG members
linked to the rural branches, farm labourers were more (32.50 percent).

In the SHGs linked to the urban branches, 57.50 per cent of the members’ family
belonged to the category of two earnings members and 42.50 per cent of the members’ family
belonged to category of two employed members in the SHGs linked to the semi urban branches.
In the SHGs linked to the rural branches, 45.00 per cent of the members’ family belonged to
category of two earning members.
About 62.50 percent of the SHGs linked to urban branches have a monthly savings
Rs.60- 80 per member as against 50.00 percent of SHGs linked to the semi urban branch and
rural branches. 25.00 percent of the SHGs linked to semi urban branch save Rs. 101- 120 per
member as against 12.50 percent of the SHGs linked to rural and urban branches.

The SHG members linked to the urban branches assigned first rank to, migration of the
members for the dropouts. They have given second and third rank to conflict within the group
and financial difficulty death as the reason for the. The SHG members linked to the semi urban
branches gave first rank to migration of members for the dropouts. They have assigned second
and third rank to death and illness of members and conflict within the group as the reason for the
dropouts. The SHG members linked to the rural branches assigned first rank to the conflict
within the group as the important reason for the dropout.

Among the SHG members linked to the urban branch, 35.30 percent received the loan
between Rs. 5000 and Rs. 10,000. Among the SHG members linked to the semi urban branch,
35.00 percent have availed loan in the range Rs. 5000 to Rs. 10,000. In rural branch, majority of
members have availed loan varying from Rs. 5000 to Rs. 10,000. Among the SHGs members
linked to the rural branch, 75.00 percent had attended the trainings offered by the Non
Governmental Organizations or banks or by the Corporation bank officers followed by 62.50
percent of SHG members linked to semi urban and in members linked to urban branch, 75.00
percent had attended the trainings.

The average monthly income of the members of SHGs in pre and post SHG situation was
Rs.5, 675 and Rs.6, 665 respectively. The average increase in monthly income of the members of
SHGs was of Rs.990 i.e., 17.44 percent of pre- SHG situation.

The members linked to the urban and semi urban branch, expressed the decision making
regarding children’s education and their marriage had increased greatly among the decision
making regarding household savings and household expenditure, selection of job and recreation
after joining the Self Help Group. In rural branches the decision- making regarding household
savings which ranks first, followed by children’s education.

In the SHGs linked to the urban branch, group conflict was the major constraint in the
promotion of Self Help Groups as against the migration of members and financial burden in the
case of the semi urban and rural branches with a mean score of 73.6 and 71.9 respectively.
Financial burden and group conflicts were ranked second in urban and semi urban and rural
branches with a mean score of 67.65, 66.8 and 67.9 respectively. Migration and death of
members were given third important constraint in urban branch while respondents of semi urban
and rural branches assigned third rank to financial burden and lack of skill based training with a
mean score of 57.3 and 55.74 respectively. Least importance was assigned to political pressure
and non-co-operation by banks by all selected branches.