Joybaba

Do the Benefits of Development of Microfinance Programs Reaches to the
Poor Villagers at Grass Root Level - An Experimental Evidence in the rural
areas of Rasulpur of Burdwan District, West Bengal

NAME: RAHUL GUPTA
ROLL NO: 2012110
BATCH: 2012-14

SUMMER INTERNSHIP COMPLETION CERTIFICATE SIGNED BY
INDUSTRY GUIDE

This is to certify that Summer Project Report on ―Do the Benefits of Development of
Microfinance Programs Reaches to the Poor Villagers at Grass Root Level - An Experimental
Evidence in the rural areas of Rasulpur of Burdwan District, West Bengal
" prepared by ―RAHUL GUPTA” Roll No. 2012110 of PGDBM 2012-2014 Batch is his/her
genuine effort under my guidance and supervision. His/hers internship commenced on
__________________ (Date) & was completed on___________________ (Date).

The student has successfully discharged all duties assigned to him/her during his internship
with the organization. His conduct was found to be good.

Signatures of the Industry Guide

Name of the Industry Guide: A.K.MONDAL

Designation of the Industry Guide: BRANCH MANAGER OF RASULPUR BRANCH,
PASCHIM BANGA GRAMIN BANK

Page -2

INFORMATION SHEET
NAME OF THE COMPANY:

PASCHIM BANGA GRAMIN
BANK

ADDRESS OF THE COMPANY:

RASULPUR BAZAR,
BURDWAN, WB

PHONE NO. OF THE COMPANY:

09775736544

DATE OF INTERNSHIP COMMENCEMENT:

01/05/2013

DATE OF INTERNSHIP COMPLETION:

10/07/2013

NAME OF THE INDUSTRY GUIDE:

A.K.MONDAL

DESIGNATION OF THE INDUSTRY GUIDE:

BRANCH MANAGER

STUDENT’S NAME:

RAHUL GUPTA

STUDENT’S ROLL NUMBER:

2012110

STUDENT’S E-MAIL ID:

rahulgupta238@gmail.com

STUDENT’S MOBILE/ RESIDENCE
NUMBER:

08800577370

Page -3

CERTIFICATE OF COMPLETION DULY SIGNED BY THE
FACULTY GUIDE

This is to certify that Summer Project Report on ―Do the Benefits of
Development of Microfinance Programs Reaches to the Poor
Villagers at Grass Root Level - An Experimental Evidence in the rural
areas of Rasulpur of Burdwan District, West Bengal ―prepared by
"RAHUL GUPTA" Roll No. "2012110" of PGDBM 2012-14 Batch
is his/her genuine effort under my guidance and supervision.

Signatures of the Faculty Guide

Name of the Faculty Guide
RITU SRIVASTAVA

Signatures of the Student

Name of the Student
RAHUL GUPTA

========================================================

Page -4

Do

the

Benefits

of

Development

of

Microfinance Programs Reaches to the Poor
Villagers at Grass Root Level -

An Experimental

Evidence in the rural areas of Rasulpur of Burdwan District, West
Bengal

A project report submitted to NIILM-CMS in partial fulfillment of
requirement for summer internship Program

Supervisor:
Ms. Ritu Srivastava
Faculty Member of NIILM-CMS

Submitted by:

RAHUL GUPTA

Roll no:- 2012110
Page -5

Acknowledgement

I would like to convey my sincere thanks to Mrs. Ritu Srivastava, Faculty in
charge of NIILM-CMS for her continuous inspiration.
I wish to take this opportunity to express my deep sense of gratitude to my j
supervisor Mrs. Ritu Srivastava, faculty members in NIILM-CMS for their
precious guidance and help to complete my project report successfully.
I would like to convey my sincere thanks to RASULPUR BRANCH
Mr. A.K.MONDAL, for his valuable guidance and suggestion.
Last but not least it is my foremost duty to thank all my respondents, who
help me to collect necessary information during the field survey.
I also express our gratitude to our sincere library staff who has provided us
with study material time to time. We owe debt to my family, colleagues and
friends who are in some or other way responsible for the completion of this
project.

ROLL NO: - 2012110

Page -6

Self-Declaration

I hereby declare that this project report entitled ―Do the Benefits of Development
of Microfinance Programs Reaches to the Poor Villagers at Grass Root Level? :
An Empirical study through Self Help Group (SHG) -‖ has been prepared by me
during the year 2012- 2013 under the supervision of PASCHIM BANGA

GRAMIN BANK Linkage in the rural areas of RASULPUR IN
BURDWAN District, WEST BENGAL

Page -7

Table of Contents
Page no

Executive Summary
Chapter- I: Introduction
Chapter-2: Bank Profile
Chapter-3: Objectives and Hypotheses
3.1 Primary Objective
3.2 Specific Objectives
3.3 Hypotheses
Chapter-4: Literature Review
Chapter- 5: Data Collection and Methodology
Chapter- 6: Analysis and Findings
6.1General information of the SHG members
6.2 Economic activities relating to occupation of the SHG
Members
6.3 Literacy level of the SHG members
6.4 Impact of Microfinance Programs
6.4.1 Average annual personal income (Rs.) of the SHG
Members
6.4.2 Average annual household income ( Rs.) of the SHG
Members
6.4.3 Average annual household expenditures (Rs.) of SHG
Members
6.4.4 Average annual household savings (Rs.) of SHG
Members
6.4.5 Social impact in terms of standard of living of the

09
15
17
20
20
20
20
22
25
27
27
29
30
32
32
33
34
35
36

SHG members as well as their families between Pre &
Post- SHG Situation
Chapter-7: Recommendation
Chapter-8: Conclusion
Chapter-9:
Annexure-I: Bibliography
Annexure-II: Sample Questionnaire

38
40
42
42
44

Page -8

Executive Summary
The main objective of the study is to assess the impact of microfinance programs
through SHG PASHIM GRAMIN BANK Linkage on the socio-economic
empowerment of the poor people in the rural areas RASULPUR of BURDWAN
District, WEST BENGAL.
Specific Objectives:
1. To assess the impact of microfinance programs on the economic empowerment
(in terms of increment of income, expenditures, saving) of the SHG members as
well as their families between Pre and Post-SHG situations;

2. To assess the impact of SHG survey to develop the day to day life slandered.

3. To assess the impact of microfinance programmes on the social empowerment
(in terms of upliftment of standard of living) of the SHG members as well as
their families between Pre and Post-SHG situations;
Hypotheses:
: There is no variation in average annual personal income of the SHG members
between Pre and Post-SHG situations;
: There is no variation in average annual household income of the SHG
members between pre and post – SHG situations;
Page -9

: There is no variation in average annual household expenditures of the SHG
: There is no variation in average annual household savings of the SHG
: There is no relationship of various indicators of standard of living of the SHG
members as well as their families between Pre and Post – SHG situations;
This study is based on both primary and secondary data. The primary data has
been collected from the field survey in the different rural areas of RASULPUR

in BURDWAN District, WEST BENGAL.
For this purpose both open-ended and close-ended questionnaires have been prepared
to collect necessary information as well as to justify the socio-economic empowerment
of the SHG members as well as their families.
On the other hand, secondary data relating to general information about the selected
SHGs has been collected from the internal records of the Rasulpur Branch, Paschim
Banga Gramin Bank Beside these few information has also been collected from the
internet, journals, magazines, newspapers and books to gather knowledge about
microfinance programs in India through SHG-Bank Linkage and its impact on socioeconomic empowerment of the poor people.
In this study Two Stage (Mixed) Sampling Technique has been used for the collection
of primary data as well as for testing hypothesis between Pre and Post-SHG situations.
P a g e - 10

The RASULPUR Branch of PASHIM BANGA GRAMIN BANK, BURDWAN
District has been able to form 300 SHGs (as on 30th June, 2011). In the first stage out
of the 300 SHGs, 100 SHGs have been selected on the basis of their loan repayment
performance. In the second stage out of 100 SHGs, one SHG member from each group
has been selected randomly in this study. The collected data has been summarized in a
‘Master Sheet’ in such a systematic manner that can fulfill the objectives of the study.
However the summarized data has been analyzed with the help of few mathematical
and statistical tools like Percentage, Mean, Standard Deviation (SD), Coefficient of
Variation (CV), Pearson Correlation Coefficient etc. by using the software (Minitab
15.0).
Major Findings



The economic activities relating to occupation of the SHG members in
the pre-SHG situation were found that 8% members were employed
and the rest 92% were unemployed. But on the contrary the economic
activities relating to occupation of the SHG members in the post-SHG
situation are found that 98% members are employed and the rest 2%
are unemployed. Here is the Positive Impact of Microfinance, because
almost all members are engaged in economic activities to generate
personal income as well as their families.



Out of 100 group members in Pre-SHG situation 65% were illiterate
and 35% were literate, among which 20% passed primary standard and
P a g e - 11

15% passed secondary standard. On the other side in the Post-SHG
situation out of 65 of illiterate members of pre-SHG,15% remains
illiterate and the 75% members have been able to read and write and
10 % can do sign only. Here is the Positive Impact of Microfinance,
because microfinance programme has changed the scenario of Literacy
Level among the SHG Members.



The mean average annual personal income of the SHG members
(Rs.36852) in the Post-SHG is higher than the Pre-SHG (Rs.33612).



The high inequality of average annual personal income distribution
has been found for both Pre -SHG (C.V = 22.28) and Post-SHG (C.V
= 16).



The high variation in average annual personal income distribution has
been found for the SHG members between Pre and post-SHG
situations.



The mean average annual household income of the SHG Members



The high inequality of average annual household income distribution
has been found for Pre -SHG (C.V = 13.80) but moderate inequality
has been found in the Post-SHG (C.V = 8.65).

P a g e - 12



The high variation in average annual household income distribution
has been found for the SHG members between Pre and post-SHG
situations.



The mean average annual household expenditures of the SHG
Members (Rs.71448) in the Post-SHG is higher than the Pre-SHG
(Rs.68076).



The high inequality of average annual household expenditures has
been found for Pre -SHG (C.V = 14.35) and but moderate inequality
has been found for Post-SHG (C.V = 8.21).



The high variation in average annual household expenditures has been
found for the SHG members between Pre and post-SHG situations.



The mean average annual household savings of the SHG Members



The high inequality of average annual household savings has been
found for both Pre -SHG (C.V = 20.31) and Post-SHG (C.V = 21.52).



The high variation in average annual household savings has been



The Correlation between the use of own Deep Tubewell in the PreSHG and the improvement from the other sources to own Deep
Tubewell in the Post-SHG shows a high positive correlation (r =
0.798).
P a g e - 13



The Correlation ( r = 0.396) between the better earthen housing
condition in Pre-SHG and the improvement to better condition in PostSHG shows a moderate positive correlation.



The Correlation between Personal Lavatory with Bath Room in Pre
and Post-SHG situations indicate a high positive correlation (r =
0.606).



The Correlation of better dress quality of the members between Pre
and Post-SHG situations shows a high positive correlation (r = 0.588).



The Correlation of watching the TV Serial / Cinema between Pre and
Post-SHG situations indicate a high positive correlation (r = 0.511).

P a g e - 14

Chapter - 1

Introduction
The Microfinance Programmes through SHG (Self Help Group) – Bank
Linkage have been launched by the Government of India as a strategy of
poverty alleviation and rural development. The National Bank for Agriculture
and Rural Development (NABARD) has made pioneering efforts which is
vested with the task of framing appropriate policy for rural credit, provision of
technical assistance backed liquidity support to banks, supervision of rural
credit institutions and other development initiatives. The emphasis is on
improving the access of the poor to Microcredit. There is a basic difference
between Microcredit and Microfinance. The microcredit caters to commercial
needs of poor for enabling them to raise their income levels and to improve
standard of living‖. Thus in microcredit more emphasis is given on loans, while
microfinance also includes support services where people open up channels for
thrift, market assistance, technical assistance, capacity building, insurance,
social and cultural programs etc. So where microcredit is ‗only credit‘ there
microfinance is ‗credit plus. The main theme of Microfinance Programs are that
where the poor people do not have access to normal bank loans for income
generating activities, Microfinance provides small loans to very poor people for
self-employment purpose. It enables the poorest of the people, especially

the women to generate income for them as well as for their families.
P a g e - 15

The SHGs is the basic constituent of microfinance programme in
India. SHG is a group of 10 to 20 poor members and also women
who hugely organize themselves for the eradication of poverty. The
SHG is generally formed by a name. The group members agree to
save regularly a very small amount of money (say Re.1 per day per
member) and aggregate their savings into a fund known as ‗Corpus
Fund‘ from which they can borrow up to 4:1 ratio (maximum loan
amount is a multiple of the total funds deposited in the group
account) as and when necessary for their income generating purpose
.Such a group is linked with a bank, where the group maintains a
saving account. Sometimes the group can withdraw the deposited
amount from the saving account for their personal or family related
purpose. The withdrawal is permitted by the bank if a resolution is
drafted by the members in the group meeting. Group leaders and
deputy group leaders mainly motivate the groups. Generally they
maintain the meeting resolution, record books and register which act
as coordinator between the group and a bank.
.

P a g e - 16

Chapter - 2
. Profile

of the Paschimbanga Gramin Bank

Paschim Banga Gramin Bank is one of the leading Regional Rural Banks
formed by amalgamation of three erstwhile Gramin Banks viz. Howrah
Gramin Bank, Bardhaman Gramin Bank and Mayurakshi Gramin Bank as
per Govt of India Notification No: 1/4/2006-RRB dated 26.02.2007.
On amalgamation of erstwhile three Gramin Banks now termed/treated as
transferor Banks, newly established Paschim Banga Gramin Bank has four
districts viz. Howrah, Hooghly, Burdwan and Birbhum as its area of
operation.
Howrah, Hooghly and Burdwan districts traditionally have immense potential
both for agriculture and industry, whereas Birbhum District is not so
advanced in terms of agricultural activities and mostly has mono cropped land
area. Revised and modified industrial policy at the State Level is accelerating
the pace of Industrial Development in the aforesaid districts. Besides,
introduction of non-traditional crop cultivation and multi-dimensional
approach for rising food production arising out of new thrust areas in the
agricultural policy, may contribute to upliftment of the economy of the
aforesaid districts.

P a g e - 17

The region of Bengal is one of the most densely populated regions on earth,
with a population density exceeding 900/km. Most of the Bengal region lies
in the low-lying Ganges–Brahmaputra River Delta or Ganges Delta, the
world's largest delta. In the southern part of the delta lies the Sundarbans—
the world's largest mangrove forest and home of the Bengal tiger. Though
the population of the region is mostly rural and agrarian, two megacities,
Kolkata (previously Calcutta) and Dhaka (previously Dacca), are located in
Bengal. The Bengal region is renowned for its rich literary and cultural
heritage as well as its immense contribution to the socio-cultural uplift of
Indian society in the form of the Bengal Renaissance, and revolutionary
activities during the Indian independence movement.
Remnants of Copper Age settlements in the Bengal region date back 4,300
years. After

the

arrival

of Indo-Aryans,

the

kingdoms

ofAnga, Vanga and Magadha were formed by the 10th century BC, located in
the Bihar and Bengal regions. Magadha was one of the four main kingdoms
of India at the time of Buddha and consisted of several Janapadas. One of the
earliest foreign references to Bengal is the mention of a land
named Gangaridai by the Greeks around 100 BC, located in an area in
Bengal. From the 3rd to the 6th centuries AD, the kingdom of Magadha
served as the seat of the Gupta Empire.

P a g e - 18

The first recorded independent king of Bengal was Shashanka, reigning
around early 7th century. After a period of anarchy, the native Buddhist Pala
Empire ruled the region for four hundred years, and expanded across much of
the Indian

subcontinent into Afghanistan

during

the

reigns

of

Dharmapala and Devapala. The Pala dynasty was followed by the reign of
the Hindu Saiva Sena dynasty. Islam made its first appearance in Bengal
during the 12th century when Sufi missionaries arrived. Later, occasional
Muslim

raiders

reinforced

the

process

of

conversion

by

building mosques, madrassas and Sufi Khanqah. Beginning in 1202 a military
commander from the Delhi Sultanate, Bakhtiar Khilji, overran Bihar and
Bengal as far east as Rangpur, Bogra and the Brahmaputra River. Although
he failed to bring Bengal under his control, the expedition managed to
defeat Lakshman

Sen and his two sons moved to a place then

called Vikramapur (present-day Munshiganj District), where their diminished
dominion lasted until the late 13th century.

P a g e - 19

Chapter-3
Objectives and Hypotheses
3.1 Primary Objective:
The main objective of the study is to assess the impact of microfinance programmes
through SHG –Paschim Banga Gramin Bank Linkage on the socio-economic
empowerment of the poor people in the rural areas RASULPUR of BURDWAN
District, West Bengal.
3.2 Specific Objectives:
4. To assess the impact of microfinance programs on the economic empowerment
(in terms of increment of income, expenditures, saving) of the SHG members as
well as their families between Pre and Post-SHG situations;

5. To assess the impact of microfinance programs on the social empowerment (in
terms of upliftment of standard of living) of the SHG members as well as their
families between Pre and Post-SHG situations;
3.3 Hypotheses:
: There is no variation in average annual personal income of the SHG members
between Pre and Post-SHG situations;
: There is no variation in average annual household income of the SHG
P a g e - 20

: There is no variation in average annual household expenditures of the SHG
: There is no variation in average annual household savings of the SHG
: There is no relationship of various indicators of standard of living of the SHG
members as well as their families between Pre and Post – SHG situations;

P a g e - 21

Chapter-4
Literature Review

The microfinance offers an important and effective means to achieving change on a
number of different fronts, economic, social and perhaps also political. The success of
microfinance organizations in building up the organizational capacity of poor women
provides the basis for their social mobilization that many other development
interventions have not been able to achieve (Kabeer, 2005). The SHG-bank linkage
programme in India has a greater economic impact on households, with increases in
income and decline in vulnerability. There is significant impact on SHG households in
terms of control, management ability, self-confidence, change in behavior and
decision-making. Apart from social empowerment, the SHG households also
demonstrate greater awareness and participation in local politics. However, the impact
is not reflected in certain key decisions, such as, no significant changes are observed in
the decision-making power of women in the field of adopting family planning
measures or buying and selling of land (Swain, 2006). The case study reveals that the
SC/STs have significantly improved their ability to collectively bargain, to plan
projects and to organize group activities besides improving their social position within
their own groups and within the wider community. An unexpected finding is the poor
economic empowerment measured in terms of improvement in assets and income and
significantly positive results has been found. There is general improvement in the
borrowing capability for majority of the poor. Even so, reckoned in terms of leadership
P a g e - 22

empowerment increase in self-confidence and general gender rights awareness building
have an impressive record especially among SC/ST groups. The several successful
cases have been shared with this study include those of a young woman who lost her
earning husband leaving the burden of educating and marrying children on her, a
woman whose husband is a drunkard and who also lost the only male child and a
woman who now lives a positive life having escaped a suicide attempt. They are
recorded here because, to show how Self –help group based microfinance does supply
significant bonding ‗social capital‘ along with credit support (Oommen, 2008). The
empirical results show that rural women in the studied areas have well been
empowered through microfinance programme. The empowerment has been measured
on the basis of four criterions such as increment in income, upliftment of standard of
living, improvement in literacy level and ability to take major economic decisions in
the family. But SHG members have not been able to earn income equally in the PostSHG situation due to the lack of organized local markets (Das; Mukherjee and Dutta,
2009). The empirical results also show that women group members as well as their
families have well been empowered economically and socially through the
microfinance programme (Das; Dey and Dutta, 2009). The group based microfinance
interventions has a positive impact on the socio- economic development of poor
villagers in Orissa. The empirical results show that group based microfinance impacted
the client household positively in the increase of income, assets position, savings, and
literacy and in the reduction of migration. The expenditure pattern was altered for

P a g e - 23

households who participated in the group based microfinance intervention where more
impact was on the expenditure on productive assets and household consumables
followed by house construction and repair. The impact was the least but positive in the
case of the food expenditure (Panda, 2009). There is positive impacts on empowerment
and nutritional intake in group based microfinance programme areas overall and
heterogeneity of impacts between members of pre-existing and newly formed groups,
as well as non-participants. Female social and economic empowerment in programme
areas increased irrespective of participation status.

Nutritional benefit was more

pronounced for new participants than for members of pre-existing groups (Deininger
and Liu, 2009).
However the researchers have concluded the positive impact of the microfinance on the
socio-economic empowerment of the poor people in India and across the world. The
researchers had conducted the impact assessment studies of microfinance through SHG
– Bank Linkage towards the socio-economic empowerment of the poor people between
Pre and Post-SHG situations.

P a g e - 24

Chapter- 5
Data Collection and Methodology

This study is based on both primary and secondary data. The primary data has been
collected from the field survey in the different rural areas of Burdwan District of West
Bengal. For this purpose both open-ended and close-ended questionnaires have been
prepared to collect necessary information as well as to justify the socio-economic
empowerment of the SHG members as well as their families. The survey has been
conducted from the month of July to August; 2011.
On the other hand, secondary data relating to general information about the selected
SHGs has been collected from the internal records of the Rasulpur Branch of Paschim
Banga Gramin Bank. Beside these few information has also been collected from the
internet, journals, magazines, newspapers and books to gather knowledge about
microfinance programs in India through SHG-Bank Linkage and its impact on socioeconomic empowerment of the poor people.
In this study Two Stage (Mixed) Sampling Technique has been used for the collection
of primary data as well as for testing hypothesis between Pre and Post-SHG situations.
The RASULPUR Branch of PASHIM BANGA GRAMIN Bank, BURDWAN District
has been able to form 300 SHGs (as on 30th June, 2011). In the first stage out of the
300 SHGs, 100 SHGs have been selected on the basis of their loan repayment

P a g e - 25

performance. In the second stage out of 100 SHGs, one SHG member from each group
has been selected randomly in this study. The collected data has been summarized in a
‘Master Sheet’ in such a systematic manner that can fulfill the objectives of the study.
However the summarized data has been analyzed with the help of few mathematical
and statistical tools like Percentage, Mean, Standard Deviation (SD), Coefficient of
Variation (CV), Pearson Correlation Coefficient etc. by using the software (Minitab
15.0).

P a g e - 26

Chapter- 6
Analysis and Findings
6.1

General information of the SHG members:

Table-1
Sample size-100
Hindu

96%

Muslim

4%

Female

82%

Male

18 %

Married

97%

Unmarried

3%

20-30

16%

31-40

43%

41-50

41%

Motives behind the

Savings

3%

SHG formation

Recognition in the Society

4%

Religion

Sex

Marital status

Age

Self-Help in terms of
income generation

10%

Enhancement of family
Income

83%

P a g e - 27

Analysis and Findings:
According to the field survey in the rural areas of Adra of Purulia District 1. The religious status of the SHG members is Hindu (96%) and Muslim
(4%).
2. The sex ratio is female (82%) and male (18%).
3. The marital status of the SHG members is married (97%) and unmarried
(3%).
4. The SHG members belong to the age group of 20-30 (16%), 31-40 (43%)
and 41-50 (41%).
5. The motives of the members behind the formation of SHG were savings
(3%), recognition in the society (4%), self-help in terms of income
generation (10%) and enhancement of family income (83%).

P a g e - 28

6.2.

Economic activities relating to occupation of the SHG members
Table-2
Pre-SHG

Post-SHG

Employed

8%

90%

Unemployed

92%

10%

100

100
Pre SHG

80

post SHG

80

60

60

40

40

20

20

0

0
Employed

Unemployed

Employed

Unemployed

The economic activities relating to occupation of the SHG members in the preSHG situation were found that 8% members were employed and the rest 92%
were unemployed. But on the contrary the economic activities relating to
occupation of the SHG members in the post-SHG situation are found that 90%
members are employed and the rest 10% are unemployed. Here is the Positive
Impact of Microfinance, because almost all members are engaged in economic
activities to generate personal income as well as their families.

P a g e - 29

6.3. Literacy level of the SHG members
Table- 3
Pre-SHG
Literate (35 %)

Illiterate

Primary

Post-SHG
Illiterate

Secondary

Literate
Sign Only

Read &
Write

65%

20%

15%

60%

10%

Pre-SHG
80

30%

Post-SHG
60

60
40

40

20

20

0

0
Illiterate 65%

Literate 35%

Illiterate60%

literate40%

Literacy level of the SHG members Pre and post

P a g e - 30


1. Out of 100 group members in Pre-SHG situation 65% were illiterate and
35% were literate, among which 20% passed primary standard and 15%
passed secondary standard. On the other side in the Post-SHG
situation,60% remains illiterate and the 30% members have been able to
read and write and 10 % can do sign only. Here is the Positive Impact of
Microfinance, because microfinance programme has changed the scenario
of Literacy Level among the SHG Members.

P a g e - 31

6.4 Impact of Microfinance Programs
6.4.1 Average annual personal income (Rs.) of the SHG members
Table- 4
Pre-SHG
33612
Mean
7490
Standard Deviation
Coefficient of Variation 22.28

Post-SHG
36852
5897
16.00

Analysis and Finding;
i.

The mean average annual personal income of the SHG members

ii.

The high inequality of average annual personal income distribution
has been found for both Pre -SHG (C.V = 22.28) and Post-SHG (C.V
= 16).

iii.

The high variation in average annual personal income distribution has
been found for the SHG members between Pre and post-SHG
situations.

P a g e - 32

6.4.2 Average annual household income ( Rs.) of the SHG members
Table- 5
Pre-SHG
71040
Mean
9807
Standard Deviation

Post-SHG
76788
6644
8.65

i.

The mean average annual household income of the SHG Members

ii.

The high inequality of average annual household income distribution
has been found for Pre -SHG (C.V = 13.80) but moderate inequality
has been found in the Post-SHG (C.V = 8.65).

iii.

The high variation in average annual household income distribution
has been found for the SHG members between Pre and post-SHG
situations.

P a g e - 33

6.4.3 Average annual household expenditures (Rs.) of SHG members
Table- 6
Pre-SHG
68076
Mean
9768
Standard Deviation
Coefficient Of Variation 14.35

Post-SHG
71448
5867
8.21

i.

The mean average annual household expenditures of the SHG
Members (Rs.71448) in the Post-SHG is higher than the Pre-SHG
(Rs.68076).

ii.

The high inequality of average annual household expenditures has
been found for Pre -SHG (C.V = 14.35) and but moderate inequality
has been found for Post-SHG (C.V = 8.21).

iii.

The high variation in average annual household expenditures has been

P a g e - 34

6.4.4 Average annual household savings (Rs.) of SHG members
Table- 7
Pre-SHG
2964
Mean
601.9
Standard Deviation

Post-SHG
5340
1149
21.52

i.

The mean average annual household savings of the SHG Members

ii.

The high inequality of average annual household savings has been
found for both Pre -SHG (C.V = 20.31) and Post-SHG (C.V = 21.52).

iii.

The high variation in average annual household savings has been

P a g e - 35

6.5 Social impact in terms of standard of living of the SHG member as well
as their families between Pre and Post-SHG Situations
Table-8
Indicators of social aspects

Pearson correlation coefficient (rxy)

Sources of drinking water

0.798

Housing Condition

0.396

Sanitation Facilities

0.606

Clothing (Dress quality better)

0.588

TV Serial & Cinema watching

0.511

Pre&PostPearson correlation coefficient (rxy)
0.8
0.7
0.6
0.5
0.4
Pre&PostPearson correlation
coefficient (rxy)

0.3
0.2
0.1
0
Sources of Housing Sanitation
drinking Condition Facilities
water

Clothing
(Dress
quality
better)

TV Serial &
Cinema
watching

P a g e - 36


Sources of drinking water
i.

The Correlation between the use of own Deep Tube well in the Pre-SHG
and the improvement from the other sources to own Deep Tube well in the
Post-SHG shows a high positive correlation (r = 0.798).

Housing Condition
ii.

The Correlation ( r = 0.396) between the better earthen housing condition
in Pre-SHG and the improvement to better condition in Post-SHG shows a
moderate positive correlation.

Sanitation Facilities
iii.

The Correlation between Personal Lavatory with Bath Room in Pre and
Post-SHG situations indicate a high positive correlation (r = 0.606)

Clothing (Dress quality better)
iv.

The Correlation of better dress quality of the members between Pre and
Post-SHG situations shows a high positive correlation (r = 0.588)

TV Serial & Cinema watching
v.

The Correlation of watching the TV Serial / Cinema between Pre and
Post-SHG situations indicate a high positive correlation (r = 0.511)

P a g e - 37

Chapter-7
Recommendation
The SHG program is one of the most successful project by Government of India. Just after Andhra
Pradesh, West Bengal is the second largest area of SHG program. My study is limited by number of
SHGs in Rasulpur area of Bardhaman District. The hypothesis and analysis clearly signifies the
improvement of BPLs in SHG program. On the other hand it also made a dramatic change in Socio
economic environment. But there are several recommendations we wish to give to our respective
Bank as well as Government.

 Improving NGO management/ Accountability:
West Bengal has around 1.7 lakh NGOs under its fold thereby putting a large burden on the
WBPIU(West Bengal project implementation unit) to keep track of their field activities. Some
of these NGOs might also not be adequately qualified / staffed to handle the job. It becomes
impractical/ unviable for the PIU to maintain a strong staff strength to merely monitor the
NGOs. Instead, improvements in NGO accountability could to a certain extent be achieved.

 Monetary Incentives To NGOs Linked With quality:
Linking the ‗quality‘ aspects to the incentives provided to NGOs can also be explored.
Currently, the incentives for NGOs (the formation, cost, training cost, support cost etc) are
linked only to the number of SHGs and not to the quality of the groups formed thereby not
providing any sort of motivation / incentives for the NGOs to improve the quality of the groups
formed. This initiative should be taken by Government.

P a g e - 38

 Bank should improve their grading system: Bank has to improve their grading
system and best on that system Gramin bank will able to measure to performance of the
SHGs member and decide how much loan will provide to SHG members after analyze
their attentiveness.
 Less Responsible: Some of SHG members are less responsible regarding their
repayment of loan because of the lack of knowledge about the program.

P a g e - 39

Chapter-8
Conclusion
From this study it has been observe that few group members were involved in
economic activities in the Pre-SHG. But now maximum number of members
involved in the economic activities. Although there is high inequality in income
distribution among the selected SHGs members as well as their families, but all
of the group members and their families have economically well been empowered
in the Post-SHG. We have also observed that along with economic
empowerment, group members as well as their families are well been empowered
socially in the Post-SHG, which ensures the optimum standard of living of the
group members as well as their families. Interestingly the analysis shows that the
literacy level of the group members has been improved at optimum level through
the microfinance programme in the Post-SHG. During the field survey the group
members told that they were dependent on the informal money lenders in the PreSHG. Now they are free from the clutches of informal money lenders through
microfinance programme.
However, poor rural People in the study area have well been empowered
economically and socially through the microfinance programme. But they have
not been able to earn income equally in the Post-SHG because of lack of
organized local markets. In this aspect Govt. should intervene and assist them to
market their products.
P a g e - 40

In conclusion it can say that of course the benefits of development of
Microfinance Programs reaches to the poor villagers through SHG – Bank
Linkage at Grass Root Level.

P a g e - 41

Chapter -9 :

Annexure - I
Bibliography:
1.

Das, S; Dey, A and Dutta, S.K. (2009). Impact of Microfinance Programme
through SHG-Bank Linkage: An empirical study towards the socio-economic
empowerment of the rural people, especially women. The Annamalai Journal of
Management (Special Issue), 113-124.

2.

Das, S; Mukherjee, S and Dutta, S.K. (2009). Microfinance programme through
SHG-Bank Linkage and Rural Development: A micro-level comparitive study
towards the empowerment of poor people, especially women in the rural areas of
Burdwan and Birbhum Districts of West Bengal. 92nd Annual Conference
Volume; Structural Reforms and Agriculture. II, pp. 217-236. Bhubaneshwar:
Indian Economic Association.

3.

Deininger, K and Liu, Y. (2009, March). Economic and Social Impacts of Self
Help Groups in India. The World Bank Policy Research Working Paper
2009:4884

,

1-32.

(www.microfinancegateway.org/gm/document-

1.9.38493/39.pdf)

P a g e - 42

4.

Kabeer, N. (2005, October). Is microfinance a 'Magic Bullet' for women's
empowerment?: Analysis of Findings from South Asia. Economic and Political
Weekly , 4709-4718.

5.

(Oommen, M. (2008, April). Microfinance and Poverty Alleviation: The case of
Kerala's Kudumbashree. Working Paper2008:17;Centre for Socio-Economic and
Environmental Studies , 1-15.

6.

Panda, D. (2009). Participation in the group based Microfinance and its Impact on
Rural Households: A Quasi-experimental evidence from an Indian State. Global
Journal of Finance and Management , I (2), 171-183.

7.

Swain, R.B (2006, September). Microfinance and women's empowerment:
Evidence from Self help group bank linkage programme in India. Division for
market Development , 1-24.

P a g e - 43

Annexure – II
Sample Questionnaire
(The information collected from the respondent will strictly be used for academic
purpose only)
1) Name of the member:
2) Name of the group:
3) Religion: (i) Hindu (ii) Muslim
4) Material Status: (i) Married (ii) Unmarried
5) Age group: (i) 20-30 (ii) 31-40 (iii) 41-50
6) Motives behind the group formation:
(i) Savings (ii) Recognition in the society (iii) Self help in terms of income
generation
(iv) Enhancement of family income
7) Economic activities of the member:
PRE – S.H.G
Unemployed

POST– S.H.G

Employed Unemployed

Employed

8) Literacy level of the SHG member:
P a g e - 44

PRE – S.H.G
ILLITERATE

POST– S.H.G
LITERATEILLITERATE

PrimarySecondary

H.S Graduate

LITERATE
Sign

Read

only

& Write
both

9) Average annual Income, Expenditures and Savings (Rs.):

PRE – S.H.G
Ave.

Ave.

Family Family

POST– S.H.G
Ave.

Ave.

Family Family

Annual AnnualExpenditures Savings Annual AnnualExpenditures Savings
Personal Income
Income

of the

of the Family
Member

Personal Income
Income

of the

of the Family
Member

P a g e - 45

11. (a) Source of Drinking water:
PRE – S.H.G

POST– S.H.G

Personal deep

Collection from

Collection from

tube well

other source

other source

(old)

Specify:

Personal deep
tube
well (New)

Specify:

(b) Housing condition:

PRE – S.H.G
Earthen

POST– S.H.G
Earthen but

improved quality

Earthen

Earthen but
improved quality

(c) Sanitation:

PRE – S.H.G
Personal lavatory General (openair)
with bath room
(Old)

POST– S.H.G
Personal lavatory General (openair)
with bath room
(New)

P a g e - 46

(d) Clothing (Dress quality):

PRE – S.H.G

POST– S.H.G

Better

Poor

Better

Poor

(e) TV Serial or Cinema watching:

PRE – S.H.G
Yes

POST– S.H.G
No

Yes

No

12) Do you have any problem regarding the microfinance programme?
(i)
(ii)

13) Do you have any suggestion towards the bank to promote microfinance
programme in better way?
(i)
(ii)

P a g e - 47

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