Business Daily from THE HINDU group of publications
Thursday, May 10, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, May 10, 2007 ePaper |
|
|
|
|
|
|
|
Money & Banking
-
Credit Market Industry & Economy - Rural Development
Shobha Kannan
Micro-finance institutions outside the banking sector too appear to have realised the need to assist the large population of urban poor.
Mumbai May 9 State Bank of India appears to have taken the lead in financing the urban poor in Maharashtra by credit linking over 1,232 urban self-financing groups in the State. In Mumbai two such groups, Smruti and Purtatha, supply mid-day meals to anganwadis at suburban Santacruz. There are about 35 members in the two groups. Nine women from one group cook food while another group takes it to the anganwadis. "We take Rs 750 per month as salary and remit the balance to the bank," said Ms Karuna Kadam, who leads the groups. The bank had lent Rs 86,000 for the enterprise. In Ghatkopar, an eastern Mumbai suburb, the 15-member Prerna Mahila Griha Udyog is said to be doing well in retailing and is supported by SBI. The group produces phenyl, detergents and liquid soap. The members bank their monthly profits of Rs 1,500-2,000 regularly. Group secretary, Ms Vidya Khustale, says, "We go door-to-door to sell our products. We have also tied up with a few kirana shops (retail outlet) in our area to sell our products. We also sell our products at SBI branches of Ghatkopar, Bhandup and Thane." The bank has also given individual loans to a few self-help groups formed by bar dancers in Malwani. Senior SBI officials feel urban SHGs are at an advantage. "Easy availability of raw material and a large market is an advantage," says a senior official of the bank. Micro-finance institutions outside the banking sector too appear to have realised the need to assist the large population of urban poor, which appears to be growing by the day. Hyderabad-based SKS Microfinance wants to reach out to the poor in New Delhi, Mumbai and Kolkata. Since 2006, it had lent Rs 56.56 lakh to urban SHGs in Hyderabad alone, forming 48 centres comprising 172 groups with 870 members. However, the availability of more employment opportunities in urban areas makes self-employment less popular among the slum dwellers, says Ms Kohli, manager, urban microfinance of SKS. There is demand for working capital loan but there is an even greater demand for consumption loans (for non-business needs) in the urban areas. Studies indicate that the cost of living in cities leads to diversion of funds to consumption needs such as shelter, clothing and emergencies, while rural SHGs invariably use them for income generating activities, she says. Urban SHGs are into livestock rearing, besides tailoring, laundry, pesticide making and trade-related activities such as fruit, vegetables and utensils vending. Keen on rolling out city-specific products, Ms Kohli says, "We have already rolled out our operations in Bangalore. Delhi and Lucknow is now under survey. Cities have grown at a tremendous rate but they are not equipped properly to meet the needs of poor people."
More Stories on : Credit Market | Rural Development | Karnataka | State Bank of India
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|