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WEEKLY
VOL. XXXIX NO. 30 PAGES 48
~
NEW DELHI 25 - 31 OCTOBER 2014
8.00
JOB HIGHLIGHTS
I
UPSC
I
M
icrofinance is the provision of financial
services to low-income clients or solidarity lending groups including consumers
and the self-employed, who traditionally lack
access to banking and related services. From
HPCl
a global perspective micro finance has
entered a sustainable phase after the global
Hindustan
Petroleum
Corporation
Limited,
Mumbai
requires
100
financial crisis. It has also expanded over the
Technicians and Craftsman
(pg 24)
years. India also has woken up to recognize
Last Date: 10·11·2014
the role of Microfinance. As of 30th June
2014, aggregate gross loan portfolio (GLP) of
CCl
MFls in India stood at Rs 261.5 bn (excluding
Central Coalfields Limited requires 527
non-performing portfolio (PAR> 180 days) in
Security Guard, Assistant Revenue
Andhra Pradesh which is roughly Rs 28 bn),
Inspector and Accountant
growth of 44% over Q1 financial year 2013(pg 32-35)
2014.The medium size MFls (GLP > Rs 1-5
Last Date: 31-10-2014
bn) registered highest growth of 47% over Q1
SAil
financial year 2013-2014.
The role of microfinance in financial inclusion
Steel Authority of India Limited,
is recognized globally. In India as well,
Burnpur requires 151 Jr. Manager
Grade E-1, Dy. Manager Grade E-3,
Microfinance Institutions (MFls) have considAssistant Manager Grade E-2 and
erably bridged the gap in financial inclusion.
Specialists/Medical Officer etc.
One of the financially excluded region of
(pg 30-31)
India is the North Eastern part comprising of
Last Date: 3-11-2014
the eight states of Assam, Arunachal
Turn over the pages for other vacancies
Pradesh, Meghalaya, Mizoram, Nagaland,
in Banks, Armed Forces, Railways,
Manipur, Tripura and Sikkim. The region is
PSUs and other Govt. Deptts
made up of diverse ethnic groups, cultures
~==============~ and languages. In terms of banking, the
region is the most financially excluded part in
WEB EXCLUSIVES
the country. The finding of the CRISIL
Following item is available in the Web
INCLUSIX provides that North Eastern states
Exclusives section on www.employlag behind other states in India. The North
mentnews.gov.in :
eastern region scores 28.5 in INCLUSIX
• "MAKE IN INDIA"- A BOOST TO THE
2011 as against 26.5 in INCLUSIX 2010 and
MANUFACTURING SECTOR.
23.8 in INCLUSIX 2009.ln terms of branch
For Informative articles on current affairs
penetration (BP) North eastern Region
you can also visit:
scored 29.9 in 2011 as against 27.7 in 2009,
www.facebook.com/yojanaJournal
for Credit Penetration (CP) it scored 21.6 in
www.facebook.com/publicationsdivision
2011 as against 17.9 and in terms of deposit
Union Public Service Commission
declares the result of Civil Services
(Preliminary) Examination, 2014
(pg 9-19)
I
I
I- - - - -I
I- - - - -I
48
MICRO FINANCE IN ...
Continued from page 1
(RoSCAs), groups of people who pool
money weekly or monthly and then distribute it to the RoSCA members in turn.
The turns are decided by mutual consent, lottery, seniority etc. within the
group.
•
Sonchay, Somobay, Samiti, Got (in
Assam) are Accumulating Savings and
Credit Associations (ASCAs). These are
savings based groups of generally 2540 where members deposit monthly
savings of a fixed amount into a central
pool, from which money is lent out to
members and non-members.
• Shinglups are prevalent in the Manipuri
community of the valley region of
Manipur. They are religious boards in
penetration (DP) it scored 36.5 in 2011 as
against 27.7 in 2009.
Looking at the coefficient of variation in financial inclusion across districts again North
Eastern Region lags behind. It is 0.44 in 2011
as against 0.46 in 2010 and 0.48 in 2009.
This is where the role of Microfinance
Institutions assumes strategic importance.
Status of North Eastern States in
Microfinance
As per the data available from the
Microfinance Institutions Network (MFIN) the
regional distribution of Gross Loan Portfolio
(GLP) as on 30th June 2014 suggests that
share of eastern region in the GLP is 27%,
south is at 33% and west and north at 20%.
Among the North eastern Region Assam
stands at 6% of the share in the Gross Loan
portfolio (GLP).Manipur with 47.0% ,Assam
with 9.1 % and Sikkim with 5.0% from the
North Eastern States are among the states
with the highest growth rates along with other
states like Himachal Pradesh with 39.5%
Jammu and Kashmir with 16.2% and Delhi
with 13.1% in the Q1 financial year 20142015 over Q4 financial year 2013-2014.
As of 30th June 2014, MFls reached over
26.5 mn clients in India. Compared with Q1
financial year 2013-2014, clients grew by
23%. The state wise distribution of the clients
shows that Tamil Nadu with 16% and West
Continued on page 48
www.employmentnews.gov.in
each locality which take care of the
expenditures incurred during death ceremonies.
•
Mahari Associations are welfare
groups prevalent amongst the Garo
clan in Meghalaya. Contributions are
made by all households of the clan, the
amount being fixed by the committee,
headed by the Nokma (the village headman). Mahari fund is used for the general welfare of the clan, for marriages,
death ceremonies, emergencies, etc.
Future growth of microfinance in North
Eastern States
Compared to the rest of India the microfinance movement started late in the North
Eastern States. MFls have a network of
10,074 branches with over 46,000 loan officers across 30 states and union territories in
Bengal with 15% are the top states in client
reach. From the North Eastern States the
state of Assam had 4% client reach of the
MFls in the same period.
The top states in terms of loan disbursement
are West Bengal, Tamil Nadu, Karnataka,
Maharashtra and Uttar Pradesh for the Q1 of
financial year 2014-2015 .These states
accounted approximately 60% of disbursements (loan amount disbursed) by MFls.
Role of indigenous institutions in providing microfinance and social security
There are several indigenous institutions in
North Eastern States that have played a pivotal role in providing microcredit and social
security to the members. These institutions
have been in existence since many years
and are a part of the culture of the place.
These indigenous institutions are primarily
Rotating Saving and Credit Associations
(RoSCAs) ego Marups in Manipur and
Accumulating Saving and Credit Associations
(ASCAs) ego Sonchay, Somobay, Got in
Assam. Other institutions such as Namghars,
Pujaghars, Shinglups, and Mahari mainly
provide social security in emergency situations such as death and the funds are also
utilized in the common welfare of the community. A brief description of these institutions
are as under:
•
Namghars and Pujaghars which are
found in Assam. A compulsory deposit of
a fixed amount by each household is
made to the Namghar (prayer hall). It is
lent out at zero or lower than market
interest rates to address emergencies.
•
Marups in Manipur are Rotating
Savings and Credit Associations
Employment News 25·31 October 2014
India. Branches of MFls grew by 9% compared with Q1 financial year 2013-2014.
West Bengal, Tamil Nadu, Andhra Pradesh,
Karnataka and Maharashtra are top states
in terms of number of branches.
Maharashtra, MP, Tamil Nadu, Gujarat and
Karnataka have the highest concentration
of MFls.
During Q1 financial year14-15, MFls disbursed over 6.3 mn loans worth Rs 94.2 bn
across India. Compared with Q1 financial
year 13-14, number of loans disbursed
grew by 34% and loan amount disbursed
by 48%. Average loan amount disbursed
per account stood at Rs 14,936. The top
MFls of India in terms of loan disbursed
during Q1 financial year 2014-2015 (Rs bn)
are Bandhan (25.4), SKS (11.6),
Janalakshmi (7.1), Ujjivan (6.7), Equitas
(4.8), Spandana (4.8), Muthoot (3.3),
Grama
Vidiyal(2.9),
GFSPL(2.8),
Share(2.7).Among these the MFls working
in some of the states of North East are :In Assam there are 6 MFls viz. Arohan,
ASA, Bandhan, Share, Ujjivan and VFS.ln
Meghalaya 3 MFls viz. Bandhan, BSFL
and Ujjivan are present. In Sikkim 2 MFls
viz. Bandhan and BSFL are present. In
Manipur and Mizoram there is only
Bandhan which is working. The data suggests that there is a need to expand the
MFI network in the North Eastern Region
for socio economic development at par with
the rest of the country.
(The author is Associate Professor
Department of Management Institute of
Innovation in Technology and Management
E-mail:- [email protected])