HDFC reaches rural masses through SHGs

The Statesman, 18th July, 2008

Within 21 months, after the launch of Self Help Group bank linkage programme by HDFC bank in the state in September 2006, the bank has financially included as many as 76,380 rural house-holds in the state and disbursed loans aggregating to Rs 50.33 crores to 5092 SHGs spread across 18 districts. All these SHGs have been provided with ‘zero balance no frill’ saving accounts, informed business head, micro-finance division, HDFC bank Mr K Manohar Raj here today. "The backward districts like Kalahandi and Bolangir have also benefited from the financial inclusion of the bank. With a social commitment, the bank has disbursed loans aggregating to Rs 74.16 lakh to 110 SHGs. As many as 1650 families have benefited from such act," Mr Raj said. Apart from the credit services, the bank also facilitates life insurance cover to the SHG members through various life insurance companies. The bank also provides credit counseling and conducts capacity building events for the SHGs. "In a bid to enhance and provide better services to the clients, two specialised branches on micro-finance at Berhampur and Jeypore would soon be opened," he said. Highlighting other activities of the bank, Mr Raj spoke on rehabilitation of destitute in Puri, sanctioning of loan for weavers in Bolangir and taking up of chapel-making activities by sex-workers through HDFC assistance in Bargarh district et al. He further said that the bank’s micro-finance programme provides access to financial services like credit, saving, insurance and remittance to the poor in a sustainable and commercially viable manner. The bank had initiated micro-finance institutions bulk lending model in 2003 and SHG bank linkage programme in 2006. So far, the bank has provided financial services to more than two million households with asset portfolio of more than Rs 10 billion across 17 states, Mr. Raj said. Among other important officials, Mrs Bandana Lal and Mr Asutosh Kumar were present.