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Risk Management in MF Jeyaseelan
Risk Management in MF Jeyaseelan
N.JEYASEELAN,
CONSULTANT, INDIA.
Vijayjeyaseelan@yahoo.co.in
SHG BANK LINKAGE PROGRAM
SHGs-INFORMAL GROUP
PROGRESS UNDER MICROFINANCE IN INDIA
Upto 31st March 2006 - in Million US dollars
Agency / Cumulative No.of persons
Program micro credit disbursed reached (in
Millions)
Amount % share to total
NABARD SHG
Bank linkage 2590.45 69.2 164.9
1813.32
2000
1500 955.77
1000
500
0
2005 2006
EMERGING SCENARIO UNDER BASEL - II
Objectives:
To review the emerging risk management scenario
in Banks delivering micro finance to Self Help
Groups and Micro Finance Institutions in India.
To identify the potential risk factors associated with
SHG-Bank linkage
To analyze the risk perception of the Branch
Managers on SHG lending
To classify the risk factors into High, Medium and
Low risk categories.
To evolve a tool for Credit Risk rating of Self Help
Groups
To offer suggestions for risk mitigation measures.
RESEARCH DESIGN: METHODOLOGY.
A descriptive study
Purposive sampling to select 68 Branch
managers implementing SHG program
Sample drawn from 5 districts of Tamilnadu
Study is more of qualitative nature
Ten major Risk factors identified through
FGDs with stakeholders
A 5-point risk rating scale was constructed
Based on the Branch manager’s perception,
risk factors were classified as
High/Medium/Low risk categories.
ANALYSIS AND FINDINGS