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Project Proposal SBI Microfinance
Project Proposal SBI Microfinance
According to Chandan Jamdage, the manager from SBI who started the
microfinance initiative in these villages, "When a SHG comes together,
they save small sums on a regular basis.
According to Chandan Jamdage, the manager from SBI who started the
microfinance initiative in these villages, "When a SHG comes together,
they save small sums on a regular basis.
The process gradually builds financial discipline. They also learn to
handle resources of a size beyond their individual capacities. The SHG
members begin to appreciate that resources are limited and have a
cost. Once the groups shows mature financial behavior, the bank feels
confident about giving them loans." Linking banks and SHGs has
become one of the largest and fastest growing microfinance programs
in India. In March 2007, microfinance reached 1.43 million SHGs with
21 million members, making a difference to the lives of over 100
million poor people in the country. SBI was the largest player in the
microfinance sector in India and financed more than 400,000 SHGs as
of March 2007...
With more than 9000 branches, and more than 4,000 branches of its
associated banks, SBI catered to the needs of agriculturists and
landless laborers through 6,600 semi-urban and rural branches. SBI
had setup 974 branches exclusively for development of agriculture
through credit deployment. The Prime Minister of India, Manmohan
Singh remarked that SBI needed to play a major role and guide all the
other banks in increasing the market for rural credit. At the
bicentennial celebrations of SBI, he said "You (SBI) have to leverage
your strengths, develop new capabilities, and show initiative to venture
into uncharted territories so that you continue to be in the vanguard of
India's growth in this century..."
Background Note of SBI
The origin of SBI dates back to the early 19th century, when the Bank
of Calcutta was established in Calcutta (present day Kolkata in the
state of West Bengal) in June 1806 under the aegis of the British-run,
Government of Bengal. Three years after its inception, the bank was
renamed Bank of Bengal on receiving its charter. It was a unique
banking institution as it was the first joint-stock bank in British India.
Next came the Bank of Bombay in April 1840 followed by the Bank of
Madras in July 1843. By 1876, the three presidency banks, together
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