Contents

Preface 1

1. ‘Students’ Microfinance Projects 2-4

2. Abstracts of Management Traineeship (MTS)

Projects 5-35

3. Abstracts of Organisation Traineeship (OTS)

Projects 36-75

4. Abstract of Village Research Papers 76-105

‘Students’ Microfinance Projects
(2001-2005)

( Abstracts of Management Traineeship,

Organisational Traineeship and Village
Research Projects/Papers Undertaken by
Participants of Postgraduate Programme in
Rural Management (PRM) of IRMA)

Compiled by

H S Shylendra and Kishore Bhirdikar

MFMI Chair in Microfinance, IRMA

Institute of Rural Management, Anand

January 2006

2
 Preface

Every batch of participants pursuing the postgraduate course in rural

management(PRM) in IRMA is involved in Field Work Segment (FW), Organizational
Traineeship Segment(OTS) and Management Traineeship Segment (MTS) as part
of their course curriculum. As part of these segments, some of the students have
worked specifically on microfinance issues.

The document presents the abstracts of the reports and research papers on
microfinance prepared by PRM participants as part of these segments. An increasing
number of Microfinance Institutions (MFIs)/ Non Governmental Organisations
(NGOs) are coming forward recently to offer various student projects. The need to
consolidate and prepare a single document of abstracts of various studies
undertaken by the students was felt as these studies are indicative of the emerging
needs of the microfinance sector. Thus, the main purpose of putting the abstracts
under one document was to understand the emerging needs of the microfinance
sector as well as help disseminate the findings of the student’s projects among a
wider audience. We hope to update the document regularly.

We would like to clarify here that within IRMA those taking the PRM course are
referred to as participants instead of students. However, in this document more
often we use the term students for the sake clearly conveying the nature of
participants whose work are used here. We are thankful to IRMA, PRM participants
and Microfinance Management Institute (MFMI) for the support received in this
regard.

H S Shylendra

Kishore Bhirdikar

3
 1. STUDENTS’ MICROFINANCE PROJECTS

About Institute of Rural Management Anand (IRMA)

The Institute of Rural Management, Anand (IRMA) was established in 1979 at

Anand, Gujarat with the support of the Swiss Agency for Development Cooperation
(SDC), the Government of India, the Government of Gujarat, the erstwhile Indian
Dairy Corporation and the National Dairy Development Board (NDDB) to provide
management education, training, research and consultancy support to cooperatives
and rural development organisations in India. Based on the successful experience of
the dairy farmers of Gujarat, milk producers in many other states were being
organised into dairy cooperatives, known as Anand Pattern Co-operatives (APCs).
Over the years, as some of the basic principles of APCs began to be applied to other
commodity sectors, such as oilseeds, fruits and vegetables, forestry, and fisheries,
IRMA’s clientele and activities also diversified to include other forms of organisations
and other sub-sectors. In this process, IRMA has brought within its ambit several
non-government development organisations, government development programmes,
international development organisations, and funding agencies which address the
issues of rural development. IRMA’s mission is to promote sustainable, eco-friendly
and equitable socio-economic development of rural people through professional
management of their institutions. The core of IRMA’s operating philosophy is to build
and sustain a partnership between rural people and committed professional
managers. Through this, IRMA strives to contribute to the processes of promoting
sustainable development and social justice in India’s rural society. IRMA strives to
achieve this mission by

• Educating a new breed of professional rural managers having appropriate values

and ethos to help rural organisations and institutions in professionalising their
management and empower rural people through self-sustaining processes;
• Training policy makers, directors, general managers, and those in charge of
specific managerial functions in such enterprises and projects;
• Building new rural management knowledge and theories through action-oriented
and problem solving research and consultancy; and
• Influencing public policies through policy oriented research and consultancy.

The Programme in Rural Management (PRM)

IRMA recognises that, given the complex environment in which rural organisations
work, there is a far greater need for professional management in these organisations.
The Institute attempts to prepare young talented managers through a well-structured
two-year Post-Graduate Programme in Rural Management to undertake challenging
responsibilities in the rural co-operatives and the development organisations.
Towards this end, IRMA has been closely working with its client organisations to
integrate their emerging needs into the programme by periodically revising the
curriculum. The present programme design is a reflection of this growing partnership.
PRM is a two-year residential programme, leading to a Post-Graduate Diploma in
Rural Management (PGDRM). This unique programme is designed to offer flexibility
to working executives and officers who are sponsored by IRMA’s designated
organisations. The sponsored candidates can complete the programme in two years
or opt for Certificate in Rural Management (CRM) at the end of the first year. The
CRM holders have the option to rejoin within three years and complete the second
year of the programme to obtain PGDRM. Those sponsored candidates who cannot
meet the minimum academic norms will only be given a certificate of participation

4
specifically addressed to their employers. PGDRM is recognised as equivalent to a
master’s degree by the Association of Indian universities (AIU) and is approved by
the All India Council for Technical Education (AICTE).

The programme comprises four different segments - classroom, fieldwork,

organizational traineeship and management traineeship. Of these, the first involves
an exposure to concepts, skills and knowledge in the classroom, while the second
involves an exposure to rural realities in addition to a brief exposure during Induction.
The other two components involve first-hand experience of understanding and
working in villages and in organisations. About 1/3 of the total programme duration is
devoted to opportunities for experiential learning and practical application of
knowledge and skills learned in the classroom segments. Evaluation of students’
performance in the Programme is a continuous process, affording opportunity for
frequent and regular corrections. All the four segments of the Programme are
evaluated and the results reported on students’ grade cards. Students are expected
to meet the standards of performance prescribed by the PRM Committee for each
segment.

Traineeship Segment in PRM

Management Traineeship

This segment is designed to provide the students with an opportunity to work closely
with experienced managers in an organisational setting. It exposes the students to
the working and functions of organisations and gives them an opportunity to apply,
test and polish the skills acquired in the classroom. Through the Management
Traineeship Segment (MTS), the students develop practical skills and realistic
assessment of the managerial functions in rural organisations.

The MTS is of 10 weeks duration and is scheduled after Term IV. Specifically, the
objective of MTS is to provide the students opportunities to:

• Study and demonstrate the role of a professional rural manager in an

organisation,
• Develop appropriate attitudes, values and skills required of a professional rural
manager,
• Test the applicability of management concepts and techniques, and
• Develop an integrated understanding of functioning of a rural development or
producers’ organisation.

The MTS helps the students to develop key abilities which they need on the job:
working effectively with others, thinking and acting positively, learning to manage
people, and improving written and oral communication. The MTS also imparts
flexibility and creativity to the overall design of the programme. At the end of the
MTS, students present and discuss their reports, first in the host organisations and
later in MTS seminars at IRMA. The MTS reports of students constitute a valuable
and useful collection in the IRMA library. Both, the MTS reports and the
presentations are evaluated.

5
Organisational Traineeship

The Organisational Traineeship Segment (OTS) is of 10 weeks duration and it is

scheduled after Term III that marks the beginning of second year in PRM. This
segment is designed to help the students understand the structure and dynamics of
an organisation using semi-structured instruments (questionnaires, checklists,
schedules, etc.). Students may also work on a small problem in any functional area
of management, if the organisation so desires. Faculty involvement in the design and
supervision of this segment is quite substantial. Faculty and students closely interact
with the designated organisations and look forward to opportunities for developing
cases and other teaching
material. Student’s performance in this component is evaluated through reports and
presentations.

Village Fieldwork

The ten-week long Fieldwork Segment after the first term of classroom segment
exposes the students to the realities of the lives of the rural people. It attempts to
develop in them sensitivity to the concerns of the rural people; helps them in
appreciating constraints and possibilities for development; and gives them a flavour
of community work at the grassroots level. For the purpose of fieldwork, the students
are divided into small groups and sent to rural areas in different parts of the country.
Each group is attached to a local host organisation and the members of the group
stay in the identified villages. The students interact directly with the villagers as well
as execute a small action oriented task entrusted by the host organisation. The
students are also expected to participate in collaborative research work with faculty
members in identifying issues, challenges and strategies for the management of rural
organisations. Fieldwork exposes the students to the diverse problems the rural
professionals face in their roles and the ways through which experienced rural
managers cope with such problems. Such an exposure enables the students to
develop the skills and attitudes required for actions in which they, in their careers as
rural managers, will have major stakes. The IRMA faculty closely interacts with
students at all the stags of the Fieldwork Segment. They participate with students
during a portion of the fieldwork to guide and help them; they work with them in
structuring their learning from the field for classroom discussions and presentations,
and in writing their field reports. Students’ learning from fieldwork is evaluated on the
basis of their presentations and discussions in the seminars, reports submitted at the
end of fieldwork, feedback from the host organisations, feedback from the faculty
guides and, where necessary, individual interviews.

The Document

This document is a compilation of the abstracts of reports prepared in the area of

microfinance by the participants of PRM programme under the above mentioned
traineeship segments during 2001-05.

The document is divided into four sections. The Section one gives a brief
description of IRMA , the PRM programme and MTS, OTS and Village FW
segments of the PRM programme under which the students carry out various
projects.. The other three sections include the abstracts of MTS, OTS and FW
segment reports in that order. At the beginning of each section, a list of all the
projects carried out on microfinance in the respective traineeship segment is given.

6
 2. ABSTRACTS OF MANAGEMENT TRAINEESHIP (MTS)
PROJECTS
In this section, the abstracts of Management Traineeship Segment (MTS) reports on
microfinance sector are given. The abstracts are given year wise. A list of all MTS
reports on microfinance prepared during 2001-05 is given below.

MTS Projects on Microfinance, 2001-2005

Student Year of
Sr. No. Title of the Study Oragnisation
Name(s) Submission
Micro- Design of an
Urban Microfinance
Program for the Vendor
1. Bipul Chand 2003 ICICI Bank, Mumbai
Community in Ghatkopar
and Matunga Area of
Mumbai
Anshul Gupta,
Design a Health
Apoorva Surya HM Patel Center for
Insurance Policy and Pre-
2. Deo and 2003 Medical Care &
Launch Market Survey
Atul Kumar Education Anand

Poverty Alleviation and The Kudumbashree

Bank Finance: A Study Mission,(State Poverty
3. Girish B 2003
on Violation of RBI Alleviation Mission),
Norms Kerala.
To Study the Scope and
Potentiality of
SHGs/Federated SHGs Indo-Swiss Participative
2004
4. Prateek Kala to Act as Resource Watershed
Centre/MFI to Improve Development-Karnataka
Rural Livelihood in
ISPWDK Project Area
Competition in Micro Mahila Abhivrdhi
5. Shilpa G. Finance – An In –Depth 2004 Society, Andhra Pradesh
Study (APMAS)
To Study the Scope and 2004
Potential of Rural Micro-
Bhoruka Charitable
6. Ravindra Kanth Enterprises Development
Trust, Rajasthan
in the Villages of Churu
District
Graduating Micro 2004
Manju M. G. Finance Entrepreneurs to
ICICI, Social Initiatives
7. and Krishna Micro Finance
Group, Mumbai
K. S. Institutions: Analysis and
Recommendations
Impact Study of Project 2004 Hindustan Lever Ltd.,
8. K. S. Reddy
Shakti Mumbai
Microfinance
Management System:
Customer Appraisal, Shriram Social Welfare
9. Rajiv Ranjan 2005
Loan Management and Trust, Chennai
Accounting and
Management

7
 Student Year of
Sr. No. Title of the Study Oragnisation
Name(s) Submission
2005
Prasoon Feasibility Study for
Raghuvanshi Setting up Micro
10. Seva Mandir, Udaipur
and Deepti Enterprises in Villages by
Ranjan Bedbak Rural Youth
Formulation of A Cost- 2005
Action for Social
Effective Strategic Plan
11. Raman Jain Advancement (ASA),
for Improving the Micro-
Bhopal
Finance Programme
Design for Establishment 2005
Mahila Abhivrdhi
of District Livelihood
12. Kiran Puttah Society, Andhra Pradesh
Resource Center – A
(APMAS), Hyderabad,
Revenue Model.
13. Atul Kumar and Feasibility of setting up a 2006 Action for Social
Sandip Kumar Micro Finance institution Advancement, Bhopal
Katiyar in Jhabua
14. Naveen Kumar A state level assessment FWWB, Ahmedabad
Mallik, of the microfinance
Kumar Amit sector to facilitate the
and strategic planning for the
Kumar development of
Prashant microfinance institutions 2006
15. Gyaneshwar West Begal: A state level 2006 FWWB, Ahmedabad
Ranjan assessment of the
and Kausik microfinance sector to
Kumar facilitate the strategic
Chakraborty planning for the
development of
microfinance institutions
16. Ruchi Agarwal Designing Financial 2006 Aajeevika Bureau,
Services And Systems Udaipur, Rajasthan
For Rural Migrants Of
South Rajasthan
17. Vandana Lohia Urban Microfinance – 2006 ICICI Bank Ltd.
and Reaching urban poor (Alternate Channels
Nitin Korepal through multi-level Group), Mumbai
individual lending model
18. Dipi Gupta Mobilizing support for 2006 ICICI Prudential LIC
providing innovative Ltd., Mumbai
insurance services to the
poor
19. Alok Modi, To study the profile and ICICI Prudential LIC
Saurabh Kumar identify the High Net- Ltd., Mumbai
Sinha and Worth Individuals as
Amit Kumar potential customer for life
Mishra insurance 2006
20. Pragna Kolli Pre-Incubation processes 2006 Microfinance Group –
of microfinance IIM, Bangalore
institutions and road-map
ahead

8
 Student Year of
Sr. No. Title of the Study Oragnisation
Name(s) Submission
21. Anshul Goyal Study of Credit Co- 2006 ICICI Bank Ltd (RMAG),
and Prashant operatives for their fiscal Mumbai
Banerjee health and their
Willingness and
Readiness to link with
Formal Financial
Institutions
22. Chaman Kumar Enhance rural banking & ICICI Bank (RMAG),
and Umanath financial services Mumbai
Mishra coverage at the grassroot
level (Ahmednagar) 2006
23. Rahul Market potential for Grameen Koota,
Kasinadhuni microfinance in the state Bangalore
and of Karnataka & strategic
S. Sairam blueprint for grameen
koota for five years
(2005-2010) 2006
24. Shahid Ahmad Process mapping at SKS 2006 Swayam Krishi Sangam,
Khan and Hyderabad, AP
Chandan
Batsayan
25. Samrat Drawing policy lessons 2006 BASIX, Hyderabad
Mazumdar and from studying the PACS
Choudhary of Sreedharpur and Tungi
Ajay SKUS in West Bengal
and the Women’s
fisheries cooperative in
Darbhanga in Bihar
26. Rakesh Kumar Impact of loans for Jeevika, SEWA
alternative income
generating activity under
Jeevika 2006
27. Narendra Singh ICICI Bank (RMAG
Sonigra and Division)
Prabhat Kumar 2006

9
1. Project: Micro- Design of an Urban Microfinance Program for the Vendor
Community in Ghatkopar and Matunga Area of Mumbai, (2003)

Participant : Bipul Chand , (2001-2003)

Organisation : ICICI Bank
Reporting Officer : Ms Bindu Ananth
Faculty Guide : Prof. P.K. Sen

Abstract : ICICI Bank is presently mostly catering to the upper and middle class
populace. Now it wants to provide banking services to those
segments of the society, which have been deprived of this, but their
requirement is far more than the better off in the society. The main
objectives of the study were: To study the existing situation
regarding demand and supply of banking services among the vendor
community in Ghatkopar and Matunga areas of Mumbai; and To
study the demand-supply gap and to propose a micro-banking model
for ICICI Bank.

The study covered Ghatkopar and Matunga areas of Mumbai. As per the
methodology of the study, the first part of the project was to do a literature review of
urban micro finance programme. This was done by going through the existing
resources available in SIG department, ICICI library, NABARD library and visiting
various Internet sites. The next part was to study the demand supply gap among the
vendor community located in the Ghatkopar and Matunga area of Mumbai. This was
done by administering survey instrument among the vendors. Data was also
collected from bank officials, moneylenders and informal service providers. The
method of sampling used for them was snowballing sampling and the instrument
used was the checklist. The study found that formal banking service was very
popular in Ghatkopar compared to Matunga. This was mainly because of the
availability of banking services at the doorsteps, prompt customer service, three
times loan against deposit and ease in getting guarantors. This type of customized
product was lacking in Matunga area, which led people to depend upon the informal
service providers leading to exploitation. As part of the recommendation, a daily
deposit scheme with lending facility has been recommended. The bank will appoint
an agent that will collect both deposit and the installment amount from the customer's
home.

2. Project: Design a Health Insurance Policy and Pre-Launch Market Survey(2003)

Participant: Anshul Gupta, Atul Kumar, Apurava Suryadeo, (2001-2003)

Organization: Shree Krishna Hospital, Karamsad
Reporting Officer Mr. Dilip Jose
Faculty Guide: Prof H. S. Shylendra

Abstract : Shree Krishna hospital, Karamsad, is a 500-bed hospital managed by the

Charottar Arogya Mandal. It is well equipped with modern operation theatres, ICUs,
Trauma Centers, Radiology sets, Labs and above all competent doctors are available
24 hours a day. It has been providing excellent medical services at an affordable
rate. The hospital out- patient department services an average of 1.75 lakh patients
annually and in-patient admissions are over 15000. In pursuing its mission of
providing services to the rural poor, the hospital wants to design a policy that would
offer insurance covers of lower denominations at premia lower than those offered by
other insurance companies. It also wants to eliminate the procedural hassles related
to reimbursements by itself becoming the service provider of insurance.

10
The objective of the project was to design a Health Insurance Product with special
emphasis on meeting the expectations of the poor community in rural and urban
areas. The policy had to be designed keeping in mind the rural poor, as the current
hospitalisation expenses (even if they are charged at a subsidized rate) were
unaffordable for them. The product development process was undertaken in 4
phases; namely, Exploratory Research, Pre-design survey, Insurance Product
Design and the Pre-Launch Survey. The health insurance scenario in the country
was examined and the idea of generation of the policy based on the literature review
and discussions with experts was undertaken in the first phase. In the second phase,
survey was undertaken in the coverage area of 15-20 kms of the hospital, with a
sample size of 640 respondents covering 9 villages and the twin cities of Anand and
V.V. Nagar. The major objectives of the survey were to see the perception about the
hospital and acceptance of the concept of the insurance product. The concept
statement for the survey was: “An affordable health insurance scheme providing high
quality medical care in terms of Hospitalisation to its scheme holders on payment of
yearly premium where the service provider is the hospital itself and without the
hassles of claim and reimbursement, thus making the hospitalisation completely
cash-less”. The survey findings were that the perception of the hospital was very
good and there was an encouraging response for the said insurance product
concept.

The designing of the product was undertaken by modifying the existing health
insurance products like Mediclaim, Jan Arogya, SEWA scheme etc. and also in
consultation with various experts in the field. Salient features of the product are: less
premium as compared to other policies, cashless service for hospitalisation, less
complicated exclusions, benefits in OPD, maternity and ambulance services. In
addition there is an “add on” policy for critical diseases like heart, cancer and kidney.
Finally a Pre Launch Survey was undertaken to judge its acceptance in the market
and to fine-tune the product before its final launch. Major findings of the survey are:
changes in the age limits, more maternity and OPD benefits.

3. Project: Poverty Alleviation and Bank Finance: A Study on Violation of RBI

Norms(2003)

Participant: Girish B, (2001-2003)

Organisation : The Kudumbashree Mission,(State Poverty Alleviation Mission),
Kerala.
Reporting Officer: Mr. T.K.Jose IAS, Executive Director, Kudumbashree Mission
Faculty Guide: Prof. G. Krishnamurthi.

Abstract: It was noticed in a few cases that the commercial banks are not adhering
to GOI/RBI guidelines while lending under the Swarna Jayanti
Shahari Rozgar Yojana (SJSRY) resulting in denial of benefits due to
the urban poor. Under this background, the objectives of the study
were: To examine the availability, accessibility and affordability of
credit to poor; Understand the lending practices of banks with
respect to interest rates, subsidy accounting, repayment terms and
delay; To investigate compliance of RBI norms with respect to the
above; To assess the extent of discrepancies, if any; and To suggest
a suitable monitoring mechanism for corrective action and
prevention.

The study covered three districts. One hundred branches of twenty-one banks and
six hundred and forty eight loan accounts were covered. Secondary data were

11
collected through literature survey. Data regarding the lending practices of a bank
were collected through unstructured interviews with bank managers/officers using a
checklist. Sample data consisting of basic details of loans were collected from each
branch and were analysed. Separate sample was used to assess the delay in
sanctioning of loans. Indices were calculated for comparison. Percentage analysis
and cross tabulation were used for drawing inferences. However, the study had two
limitations, first where the RBI/GOI guidelines are silent or vague interpretation is
done favouring the poor, consistent with the true spirit behind the scheme and where
co-operation from bankers was not forthcoming conclusions were drawn on the basis
of available data.

The main findings and inferences from the study were that thirty one percent of the
banks are charging higher than prime lending rates prescribed for such loans. This
was found in 27 percent of the group loan accounts above two lakh rupees. Sixteen
percent of the banks are treating subsidy as upfront violating the norms. Sixty one
percent of the banks are charging interest on subsidy against clear guidelines
otherwise. Sixty percent of the loan accounts were given a repayment period ranging
between 60-71 months which is acceptable. It was found the mode of fixing monthly
repayment installment has a serious impact on the effective repayment period and
cash flows of the business units. In eighty percent of the cases the subsidy portion
also is included in the repayment installment resulting in dilution of repayment period
granted and increased burden on the borrowers. Ninety seven percent of the banks
are compounding quarterly. Only seven percent of the banks are following the delay
norms. Over fifty percent of the sample loans taken were sanctioned after a delay of
two months. Only forty-four percent of the banks have given some moratorium/
repayment holiday. Index was calculated to compare and grade banks as well as
Urban Local Bodies on selected major aspects – Interest on subsidy, installment
method, subsidy method and grace period. More variation was found in the case of
interest on subsidy.

The study concludes and recommendations that the deviations from the lending
norms for the scheme are widespread and the benefits envisaged are not reaching
the poor. The reasons vary from structural to behavioural. There is an urgent need to
examine all the loan accounts and correct the accounting. The duplicate of the
SJSRY application form can be used for monitoring purpose. RBI may be requested
to issue more clear and specific guidelines. A Credit Monitoring Cell must be formed
by Kudumbashree Mission with responsibility to monitor loans. Steps to be taken for
enhancing the confidence of bankers in repayment and viability of micro enterprises
formed. The linkage model itself is not suitable for delivery of credit to micro-
enterprises. There is a need for a planned transformation to a model of linkage with
less dependency on commercial banks.

4. Project: To Study the Scope and Potentiality of SHGs/Federated SHGs to Act as

Resource Centre/MFI to Improve Rural Livelihood in ISPWDK Project Area (2004)

Participant: Prateek Kala, ( 2002-2004)

Organization: Program Support and Management Unit (PSMU), Swiss Agency for
Development and cooperation / Inter cooperation , Bangalore
Reporting Officer: Mr. J.Jangal, Senior Programme Coordinator, PSMU
Faculty Guide: Prof. Shiladitya Roy

12
Abstract: Indo-Swiss Participative Watershed Development Project – Karnataka
(ISPWDK) is being implemented through the partner NGOs by host
organisation. The project work was done in two partner NGOs,
MYRADA and PRAWARDA and the objectives of the two projects
were different. So the summary produced below is combined for both
the projects. The objectives of the study were: To assess the overall
performance and status of SHGs formed by PRAWARDA and their
impact on lives of members, to assess the need of setting up a MFI
and to understand and analyze the legal status required by it for its
functioning , to understand and analyze the ways of mobilizing
resources for this body to support the livelihood activities of SHGs ,
to study the concept and functioning of Resource Centre , to study
the potential of Resource Centre and the role it can play in
addressing the problems of community and to make assessment of
member SAGs of Resource Centre

The study covered Basavakalyan Taluk of Bidar district (PRAWARDA) and Chincholi
Taluk of Gulbarga district (MYRADA). The study was conducted by using both primary
and secondary data in both the organizations. The study comprised of field visits, case
studies, checking indicators, scanning literature reports and studies done on
SHGs/SAGs, websites search, interaction with Branch Managers of Bank. Meetings of
SHGs/SAGs, federated SHGs, GMASK, Resource Centre were attended and tools like
structured/unstructured interviews, observations, group discussions and individual
interviews of key informants were taken. Case studies of SHGs were done and
Questionnaire and indicators were also used to assess these institutions. Cross
checking was also done for knowing the validity of information. The primary data for
the study was collected from NGO staff and the members of SHGs/SAGs and other
related organizations. Tools mentioned in methodology were used to extract primary
data. Secondary data was collected through books of accounts of SHGs/SAGs and
federated SHGs, MIS of SHGs and through the reports and study done in the project
area.

The study found that SHGs created by PRAWARDA have created positive impact in
the livelihood of rural poor women. Most of SHGs are performing well and have
started many IGA (Individually/group) but there are still SHGs which are to be looked
after. Repayment rate is above 90 percent to banks. Federation of SHGs at village
level is being done which will take more time to become fully functional. The literacy
level in the project area of MYRADA is very low. SAGs covered in study were in
phased out project area which MYRADA left three years back. SAGs are still
dependent on outside agencies. The number of SAGs formed in the area by
MYRADA is low and they are doing heavy internal lending.

The study recommends that in PRAWARDA area, federation of SHGs should be

done at Panchayat or cluster level. Still there is need to strengthen the SHGs and
make them aware of the concept of federation of SHGs and of MFI (GMASK). The
federations should be allowed to operate for 2-3 more years and after they get
strengthened, the MFI can be created. The new MFI should be registered under the
more liberal Karnataka Souharda Sahakari Act, 1997 and should mobilize resources
from agencies like RMK, FWWB at lower interest rates. In MYRADA project area
there is a need to further strengthen the SAGs which were left once project was over.
Trainings and exposure trips of members of Resource Centre and SAGs should be
organized for capacity building. Informal federation of SAGs should be formed at
village level. Role of animators in SAGs is critical and it should be monitored and
evaluated on a regular basis. More SAGs should be formed by Resource Centre and
it should start functioning one year before the project ends.

13
14
5. Project: A Study of Defaulting in SHGs and Competition in Micro Finance in
Guntur District (2004)

Participant: Shilpa Ganeriwal, (2002-2004)

Organization: Mahila Abhivrudhi Society, Andhra Pradesh
Reporting officer: Dr. Raja Reddy
Faculty guide: Prof. Arvind Gupta

Abstract: Competition in major hubs of micro finance like Bangladesh, Central

America, and East Africa is in advance stages. Some of the effects
of competition are reduction in interest rates, increased loan size,
customized products catering to the clients needs, borrowing from
multiple sources and increased default rates. Some countries have
created credit bureaus to share information about multiple borrowers
to check default rates.

Presently, Indian micro finance industry is supply driven, unregulated with low
outreach. Microfinance Institutions (MFIs) offer limited and standard products with
low emphasis on appropriate product development and promotion strategy. Andhra
Pradesh (AP) is considered the Mecca of Micro finance and has developed some of
the finest practices in micro finance industry. Of late, many MF players have come up
and the industry is slowly developing a marked difference from a monopolistic to a
competitive market. The context of the study is informed by fact that AP is in the
forefront of SHG movement in India. There are 4,65,000 SHGs covering 62 lakh
women in the state out of which 4,05,000 cumulative linkages have been given by
the bank under the NABARD refinance scheme (www.nabard.com). Andhra Bank
has provided the maximum number of linkages to the SHG in the state. It has
observed 20 percent default rate for the bank loan in the SHG linked to it. Hence the
bank commissioned this study to analyze the reasons for the default and ascertain
the effect of competition on the business of the bank, SHG members and MF market.

The limitation of the study were that the study is restricted to competition in credit
availability and analysis is based on the 4 P’s of marketing covering SHARE,
Spandana and Andhra Bank. The area of study is restricted to the 5 branches of
Andhra Bank. The objectives of the study were: to understand the rate of defaulting
and the percentage over dues, to understand the various financial resources
/agencies other than banks to groups and their influence on SHGs and SHG bank
linkage, to study the market and determine the various characteristics and challenges
faced by the industry, to map the major MFIs in Guntur and to analyze the impact
and implications of the competition on the MFI members, MFIs, bank and market.

The study used purposive stratified sampling. The universe of sampling was the
SHG linked to Andhra bank. The different levels were district, bank branches and
SHG. The district was selected based on criteria like number of linkages, the rate of
default, geographical distribution. The branches were selected using criteria like
number of linkages, rate of defaults, amount of overdue and presence of
MFIs.MACS, NGOs. The SHGs were firstly ranked based on the period of overdue,
and later sorted out based on the amount of overdue. The defaulted SHG list was
ranked in the descending order and the top 7 SHGs were selected. Proper care was
taken to ensure multiple memberships are present in the group. All the MFIs offering
credit were selected under the branch. The main stakeholders are the SHGs, the
Andhra bank and the competing MFIs. The primary quantitative and qualitative data
was collected using structured interview schedules from the SHG (sample size-37),
Bank Manager (5) and the MFI (5). Individual saving and loan account details were
collected for the selected sample from the respective bank branches. Secondary data

15
was collected from research studies done by APMAS, Mcril, Crisil, and Micro save
Africa etc. Focused group discussions were carried out with the Mandal coordinators,
Animators and bank officials.

The main findings with respect to socio economic background were that nearly 62
percent are BC and OC groups and 32 percent are SC defaulted groups. 71.8 and
8.5 percent of SHG members have white cards and pink cards respectively. The
proportion of illiterates among the SHG members is 40.8 percent. The primary
occupation of the SHG members is Agri. labour (49.4 percent), farming (22.2percent)
and petty business (12.7 percent).

The study analysed the rate of default and reasons at three levels –bank branch,
SHG and individual member. Kuchinipudi has maximum proportion (49.33 percent) of
groups overdue and amount of loan overdue (8.82 percent), which is followed by
Tumurukota. At the individual level in the SHG group, out of the 9 members who
borrowed the loan given by the bank 8 have defaulted to the group. Further, 4.5
members have defaulted out of the 5.7 members who took loan from the saving
mobilized by the group. The main reasons for default are differential treatment of
savings and loans, change of savings, distribution of savings, insufficient loan size,
Demonstration effect and willful defaulting, lending to non-SHG members

The study found multiple membership membership in SHG. The average number of
MFI members in the SHG is 2.8. These SHGs with members who borrow from
multiple sources are saving less. The MFI members belong to the Open Category
and have petty business, i. e. they are not poorest of the poor. Leaders (74.19
percent) and active members usually migrate to the MFI. The reasons for preferring
MFIs are individual loan, adequate loan size and timely loan , Multiple loans, hassle
free procedures etc. 63.64 percent of C- grade SHG have multiple membership. Also,
64 percent of the MFI members have defaulted to the SHG. Most of these MFI
members have taken fresh loans to pay the high installments of the MFI. The study
also mapped various MFIs (SHARE, Spandana and Bank) using the competitive
analysis matrix which uses 4 P’s of marketing.

The study through its impact analysis found that the SHG with MFI members find
improvement in their income level, access to pro poor programme and employment
generation. Although these members have reported more indebtedness. Impact
analysis for the SHG (only) members shows that they are free from moneylender;
education and credit availability has improved. The study also found that the
implication of competition on the bank is that the SHG members are migrating to the
MFI. Further, the MFI members have more than one source of credit but
indebtedness has increased. The industry has seen increased outreach, reduced
interest rates, increased loan size, more operational and financial efficiency in the
MFIs. The suggestions for the Bank and APMAS are to focus on Capacity building of
the SHG members, livelihood promotion in drought hit areas, strengthen monitoring
system of Bank and fixing a day in a week for SHG transactions.

16
6. Project: Scope and Potential of Micro Enterprise Development (2004)

Participant: Ravindra Kumar Kanth, (2002-2004)

Organization: Bhoruka Charitable Trust, Bhorugram
Reporting Officer: Mr. Amitabh Banerjee
Faculty Guide: Prof. G.Krishnamurty

Abstract: The objectives of the study were: to study the scope and potential of
different rural micro enterprise activities in the villages of Churu
district and their linkages with the self help groups and to study the
present micro enterprise activities and suggest ways to improve the
backward and forward linkages. The study was conducted in the
villages of rajgarh, taranagar, churu and ratangarh blocks of churu
district. It used questionnaire, informal interviews and focused group
discussion to conduct the study. The primary data was collected
from members of self help group, non-member villagers, staff of
Bhoruka Charitable Trust. The secondary data was from previous
reports of Bhoruka Charitable Trust

The study found that only 32 percent of SHGs (members) are interested in collective
enterprise. The reasons for non-interest in collective activity is owing to lack of
confidence, low level of literacy, lack of group dynamics etc. As far as individual
enterprise is concerned 21 percent is interested in dairy, 21 percent in goat and
sheep keeping, 14 percent in shops and 41 percent are not interested in any
enterprise. Statistics suggest that a pulse-processing unit of 200 kg capacity will be
feasible. Incase of SHG members the estimated interval of expenditure on health in
current year is Rs. 2557- Rs. 3883. Alpha level is 0.05. The estimated interval of
distance traveled for purchase of clothes is 14.47 Kms-16.35 Kms. Alpha level is
0.05.The estimated interval of distance traveled for watching a movie is 16.29 Kms-
18.52 Kms.

The study recommendations are : Pulse processing unit of capacity 200 Kgs/day
should be established, diversified with incense stick, papad, pickles and seasonal
things (kites, crackers etc). The barefoot doctors should be produced and on a later
stage an SHG members owned medical store should be established. The SHG
members owned cloth shop should be opened. The SHG members owned video hall
should be opened. A Well-based Ber plantation should be diversified with other
plants. In goat rearing CIG, one member from the group should go to nearby market
to sell the goats instead of selling it to the trader in the village itself and cutting of
sheep (hair) should be sold in a similar fashion (as suggested in goat rearing CIG)
after adding value to it.

7. Project: Preliminary Study for The Graduation of Micro Finance Entrepreneurs

into Micro Financial Institutions: Analysis and Recommendations (2004)

Participant: Krishna Kumar Singh and Manju Mary George, (2002-2004)

Organisation: Social Initiatives Group (SIG), ICICI
Reporting officer: Ms. Soju Annie George, Manager, SIG
Faculty guide: Prof. Shiladitya Roy

17
Abstract : Though micro finance (MF) has evolved as a revolutionary tool for poverty
alleviation in recent years, the formal MF service providers seem
unable to fully cater to the existing demand. Further, though many
Micro Financial Institutions (MFIs) came up, recent studies show
concerns over their outreach and service quality. SIG uses MF as
one of its tools to work towards its mission of building up the
capacities of the poorest of the poor to participate in the larger
economy. This study is the first step towards the strategy of
exploring alternative MF service providing models. For the same, it
looks at five MF entrepreneurs (fellows of Ashoka, an international
agency supporting social entrepreneurs and their scaleable
initiatives in the development sector). If found amenable to
intervention, SIG will go ahead and support in their graduation to
MFIs. The study is conducted with the objectives to understand
comprehensively the five individual led entrepreneurial initiatives, to
assess their capacity to graduate into MFIs and to provide broad
recommendations for intervention. The study covers five initiatives -
Centre for Rural Development (CRD) and Protein Foods in
Guwahati, Network for Entrepreneurship and Economic
Development (NEED) in Lucknow, Manndeshi Mahil~ Sahakari Bank
(MMSB), Mhaswad and Institute of Rural Credit and
Entrepreneurship Development (IRCED), Sangli. I) Though the
organisations under study are involved in many activities, this study
will focus on their efforts in micro finance.2) It does not discuss
broader environmental aspects affecting MFIs as a whole 3) The
study does not attempt to provide business plans or time lines as
outputs. Further, the study specifically looks into the five
entrepreneurial initiatives mentioned and does not attempt to
generalise for interventions. However, broad criteria for the
graduation are expected to evolve bringing up scope for further
studies.

The study uses a qualitative methodology and mostly relies on the case study
method . The data collection techniques used were in-depth interviews with key
informants and direct observation. However, in addressing the second objective, the
study faced a limitation. Though there are rating tools developed to assess existing
MFIs as potential partners, there are limited resources available for selecting
organisations to be graduated into an MFI. This study assumes that alternative
entities like entrepreneurial led initiatives can be seen as potential partners and that
its better to supplement existing structures rather than investing in parallel ones.
Further, as the initiatives as well as the clientele needs differ, context specific
products and delivery channels and thus customised recommendations for each are
called for. The study drew upon the MFI rating tools and strategic management tools
and came up with an adapted framework, which was used to assess the
organisations. It involved two units of analysis: the organisation (strategic, tactical
and operational levels) and the environment (broad and immediate). A SWOT of the
organisation was arrived at and the recommendations made based on the same. The
Primary sources included the entrepreneur, organization staff, clientele and other
stakeholders. Secondary sources included literature review on the micro finance
sector and specific organisational documents.
The study found that the broad environment posed opportunities and threats for the
micro financial interventions, which holds implications for the business plan for the
organisations. In the immediate environment, though some MF needs was common
across the clientele of the five organisations, the duration and nature of service

18
required differed with context. Further, the maturity of the clientele to absorb the
services also varied. At the organisational level, there were strengths and
weaknesses across the strategic, tactical and operational levels. Three showed
weakness in strategic planning and alignment to mission, which affected the
effectiveness in service delivery. Further, all the organisations were short of
resources to run a micro financial initiative. The study concludes that the
organisations fall in a continuum in terms of support required for the proposed
graduation. Two of them - NEED and MMSB are the most amenable to the
graduation and will require a strategic linkage and support from SIG. The other three
organisations will have to be guided even to plan out the operational aspects if taken
up for graduation.

The recommendations of the study are : Specific recommendations for the initiatives
included changes in the proposed business model, management areas where
support is required and a broad, possible direction and nature of intervention. In the
general recommendations, SIG can have pilot tests in an action research mode and
on the basis of the lessons learnt, concretise the criteria for partnership as well as a
broad intervention strategy. Based on the current study, possible criteria to be tested
seem to be a) the presence of a commercially viable model b) a rationale for micro
finance c) mature clientele d) prior experience in micro finance operations e) basic
knowledge of the micro finance sector, the possibilities that it offers and issues
involved and f) past effectiveness in resource mobilisation and utilisation. After
deciding the criteria, weights can be assigned to the same.

8. Project: Impact Study of Project Shakti (2004)

Participant: K.Sreekiran Reddy, (2002-2004)

Organization: Hindustan Lever Limited (HLL)
Reporting Officer: Varun Sahni
Faculty Guide: Prof. K. Prathap Reddy

Abstract: Project Shakti was started in Nalgonda district of Andhra Pradesh in the
year 2001 with the objectives to create income-generating capabilities for
underprivileged rural women and to improve rural living standards. HLL has been
making constant efforts to make this initiative more effective and hence impact the
greater number of people in the rural areas. This study was taken up to evaluate the
impact of Project Shakti in the place where it was piloted. The objectives of the
study were to assess the impact of Project Shakti on a. The Shakti entrepreneur
(SE), b. The villages, c. HLL and to suggest measures in order to increase the
impact of Shakti based on the study. The study was conducted in five Shakti and
the three non-Shakti villages and can be generalized only to the 30 Shakti
entrepreneurs in this district and not to all the areas where Shakti has been
implemented. Time was another limitation faced during the study. The impact of
Shakti on four parties viz. Shakti Entrepreneurs, retailers, Villages and HLL was
studied. The sampling variables used to select the Shakti villages were the category
to which the SE belongs (categorization done by HLL based on sales per month)
and the distance from a town. The non-Shakti villages were selected at random.
Care was taken to ensure that these villages were selected from a MandaI in which
at least one Shakti village was selected for the study. The primary data was
collected through semi-structured interviews from the SEs, villagers and the
retailers. Secondary data was collected from HLL sales team and the books
maintained by the SE.

The study assessed the impact on the SE was studied under two broad heads viz.
economic impact and social impact.

19
Economic Impact: Shakti has led to an increase of 18.41 percent in the income of the
SE. Absolute amount of expenditure on food and FMCG has increased leading to
improved health and hygiene conditions. Additional income in most cases has led to
increase in the savings, which can be used to clear the debts. These factors have
resulted in an improvement in the quality of life.

Social Impact: the social impact was studied in terms of the effect on the
relationship of the SE with her family, retailers and villagers. The interaction of the
SE with the villagers has increased considerably. Relations with the retailers have
been negatively affected in 60 per cent of the villages. It was observed the SE
exudes greater confidence in dealing with strangers and managing her business
than an average rural woman.

With regard to the impact on the retailers, the study found that in 60 per cent cases
the SE have faced problems with the retailers. This is because of the perception of
the retailers that the SE is a competitor and taking away their customers by selling
at less than Market retail price. The retailers agree that Shakti brings products to
their doorstep and also leads to low investment on stocks. They do not believe that
buying from Shakti saves transportation costs. The impact on the villages has been
restricted to increased availability and usage availability of HLL products which are
considered to be better quality products than the products of smaller
manufacturers.

The study recommends given to increase the impact of Shakti were: Selecting
beneficiaries with lower incomes, increasing the current level of sales per SE, credit
facilitation, provision of transport and tie up partners to impact more people in the
rural areas

9. Project : Microfinance Management System: Customer Appraisal, Loan

Management and Accounting and Management (2005)

Participant: Rajiv Ranjan, (2003-2005)

Organisation: Sriram Social Welfare Trust
Reporting Officer: Mr. M. S. Ashok
Faculty Guide: Prof. Shiladitya Roy

Abstract : The Shriram Social Welfare Trust is part of the Shriram Investments
Group. The parent organization has several business interests and a
large part of its turnover comes from truck finance. This branch of
the organization has been established to promote social welfare
through a variety of programs which include initiatives in the rural
areas. The Microfinance initiative of this organization, under which
the formation of SHGs, developing of systems, recruitment of staff
are done, is being run by a private company in rural management,
Cirrus Management Services, Pvt. Ltd. It is the newest initiative of
the Shriram Social Welfare Trust, and seeks to reach the poorest of
the poor in the rural areas. For this, SHG model of business has
been selected.

The objective of the study is to determine appraisal criteria for the evaluation of SHGs to
sanction loan to them. In addition to this to develop formats for loan application form,
receipt of loan, reminder for amount due in next two weeks and portfolio report to the
top management. The study work was mainly done by discussion with the chief

20
executive of the organisation. Apart from it, fields were visited where formation of SHGs
is taking place and discussions with the field staff were held. Some data were gathered
by secondary research. Based on the discussions with the field staffs and the chief
executive, the appraisal criteria and the formats were developed and were
recommended to the organisation which will be fine tuned after the field testing and the
experience gained in due course. The appraisal criteria are based on regularity of
meetings, regularity of savings, active lending, timely repayment of loan, low attrition
rate of members and no pending of corrections.

21
10. Project: Feasibility Study for Setting-up Micro Enterprises in Villages by Rural
Youth (2005)

Participants: Deepti Ranjan Bedbak, Prasoon Raghuwanshi, (2003-2005)

Organization: Seva Mandir, Udaipur (Rajasthan)
Reporting Officer: Mr. Ashutosh Kumar
Faculty Guide: Prof. Prabal Kumar Sen

Abstract : The objectives of the study were: To study the facilitating and inhibiting
factors in setting up micro enterprises, to generate different
enterprise options based on the inclination of the target group, to
identify feasible micro enterprises out of the set of enterprises opted
by the target group based on inter alia technical, marketing and
financial analysis of the selected micro enterprises in the prescribed
villages. This study was conducted in the villages of Madla and
Jhuntri of Jhadol and Kherwada blocks respectively. To conduct the
market analysis Udaipur, Jhadol and Kherwada markets were
considered. Interview were held with staff members of Seva Mandir’s
Women and Child Development unit, literature review of Seva
Mandir records, focused group discussion with target participants of
age group 15-24, discussion with field staff and villagers,
brainstorming sessions, village level and market survey, visit to
different government and non government institutions.

The major findings of the study were: An enterprise options generation exercise by
the beneficiaries to enumerate the different activities that can be taken up was
accomplished for the existing project. Initial screenings of micro enterprises were
being done considering the prima facie feasibility of the enterprise. The evaluation of
remaining options was being conducted and market, technical and financial analysis
of selected micro enterprises was done. The detailed business plan and intervention
design was provided for the selected ideas and finance and insurance options were
being considered for the micro enterprise activities.

The study recommends that having regards to the sustainability aspects of

suggested activities; extensive training to the target groups needs to be imparted
considering the present skill and level. To ensure the advantage of economies of
scale and fair return to the producer, centralized procurement plan, marketing efforts
need to be taken up. Proper monitoring of design set up needs to be taken care of for
mitigating the various risks associated with the intervention. Finally considering the
social custom there is need of ensuring thrift habits for the growth and sustainability
aspects of the micro enterprises.

11. Project: Formulation of A Cost-Effective Strategic Plan for Improving the Micro-
Finance Programme (2005)

Participant: Raman Jain, (2003-2005)

Organisation: Action for Social Advancement (ASA)
Reporting Officer: Mr. Abhradeep Das
Faculty Guide: Prof. Haribandhu Panda

22
Abstract : The organization Action for Social Advancement was founded in 1995
with an objective of mobilizing and empowering community based
organizations to undertake livelihood improvement, through intensive
capacity building interventions and to develop low cost and
replicable approaches to integrated Community Based Natural
Resources Management. One of the various interventions
undertaken is Microfinance, although initially it was a part of the
watershed development activities it became a separate programme
from January, 2003 onwards. The model for Microfinance delivery
that ASA has been following is that of SHG – Bank linkage with the
NGO (ASA) as the facilitator in between. It is the most popular of the
Microfinance models currently in India with 75 percent of the SHG’s
formed (in India) falling under this category and this model has been
promoted by NABARD. PHF is the funding agency for the
programme till December, 2005 (3 years) and as per their conditions
1,000 SHG’s have to be formed by the end of the funding period.
Currently in December, 2004 ASA has formed 432 SHG’s.

The objectives of the study were: To review the Microfinance programme, to find out
a cost-effective strategic plan to strengthen the existing SHG’s and to
improve the Microfinance programme and to review the Mc Financier
software package used in the MF programme.

The study was conducted in various ways. Apart from the regular discussions with
the staff members, three one day workshops were held with the staff members to
know the problems from their perspective and for data/information/analysis validity.
Then a survey of 40 SHG’s across four blocks (Ranapur, Meghnagar, Udaigarh and
Jobat) of Jhabua district, two Banks (RRB and SBI) in Meghnagar, and ASA staff
survey was conducted to know the problems from different perspectives. The visit to
PEDO, Dungarpur and PRADAN, Kesla were very helpful and provided much
insights.

The Microfinance programme of ASA is still in a learning phase and majority of the
work done has been done after it has become a separate programme (January,
2002). Currently the major problem i.e., SHG’s not being able to access the Bank
loan is an outcome of some internal problems in which the programme is being run.
Although there is some inefficiency in the banking system but internal inefficiencies
override the external ones. However, given the ground realities and staff
inexperience in MF, 432 SHGs is a sizeable number and there is potential to develop
this programme into a successful model. Immediate steps must be undertaken to
remove the internal inefficiencies and there is a need to look fill in the gaps in the
present Microfinance delivery model. The present system is a very good one and
needs to be preserved by plugging in the holes in the programme. The programme
has to be strengthened and the approach has to be more focused and well planned.
The database management system needs to be improved a lot in spite of a software
being used and the MIS needs to be strengthened as there are a lot of discrepancies
in the data flow and reporting system.

12. Project : Design for Establishing a Livelihood Resource Center at District Level -
A Revenue Model (2005)

Participant: P. Kiran Kumar, (2003-2005)

Organisation: Andhra Pradesh Mahila Abhivrudhi Society, Hyderabad
Reporting Officer: Mr. Suri Shetty Srinivas, AVP (Livelihoods)
Faculty Guide: Prof. K.V. Raju

23
Abstract : APMAS and APRLP as a part of scaling up the APRLP project into all the
districts of AP have initiated this project with the main objectives
being increasing the income levels of the poor in the project areas,
involving community based organisations for sustainable livelihoods
promotion through watershed activities, dissemination of best
practices and replication of the sustainable model in other districts
and states.

The study included desk research, study of different models, consultations and field
visits to a few villages in the district of Cuddapah, Ananthapur and Adilabad,
workshops, meetings with community based organizations and NGOs, Consultations
with livelihood experts. The study also included collection of primary data mainly
qualitative and secondary data from various sources.

In the state, Velugu and DWMA are two major organisations working in livelihoods
sector, however a few limitations such as inadequate use of infrastructure, less
concentration on livelihood activities and more on institutional building, duplication of
activities, lack of lifecycle studies of activities before intervention in the local conditions,
bureaucratic nature of the entire setup, lack of involvement of other community based
organisations, were observed which led to the need for eliminating such limitations. In
proposing the structure the above limitations were taken into consideration so that the
same may not occur in this organisation.

The study proposes a structure that would have a District Livelihood Resource Center
(DLRC) established at the district level and about five Cluster level Livelihood Resource
Centers (CLRC) at each of the five revenue divisions. The DLRC would be anchored
by APMAS and the CLRCs would be anchored by local NGOs until they become
sustainable and later on would be taken over by the Zilla Samakhya (Federation of
Village organisations at the district level). The main functions of DLRC would be
capacity building for secondary stake holders, detailed study and analysis on lifecycle
of existing and potential livelihood occupations (backward and forward linkages-
DLRC as information center), Extending support to the CLRCs in all aspects of
functioning, Networking with PIAs / NGOs at district level for developing
demonstration models, Material development, modules development, field studies,
case studies and documentation, with the help of PIAs /NGOs, Studies to facilitate
better technology adoption, Documentation of watershed activities in the district,
impact studies, Developing Video films on specific livelihood activities, Conducting
Exposure Visits, Conducting workshops with NGOs, PIAs, Coordinating with the
PMU and consortium of organizations to enhance knowledge Base. The main
functions of CLRC would be Capacity building to primary stakeholders, providing
information services and online trading on futures and options, developing models
through PIA/NGOs, conducting workshops and exposure visits, support to DLRC in
their studies and activities.

Revenue generation would be mainly through publications, sale of video films,

membership fee for information services, fees on capacity building trainings,
exposure visits and in the form of grants from government and other organisations for
various studies, and activities. For networking and support, the Project Management
Unit, consortium of resource organisations at the state level, APARD would be the
organisations which would support DLRC technically and institutionally. Also the
agenda of DLRC for the year would be decided by a network of organisations at the

24
district level. It would network with other line departments at the district level for
information gathering and acting as a repository of knowledge.

25
13. Project: Feasibility of setting up a Micro-Finance Institution in Jhabua.
(2006)

Participant: Atul Kumar, Sandip Katiyar, (2004-2006)

Organisation: Action for Social Advancement, Bhopal, Madhya Pradesh
Reporting Officer: Mr. Ashis Mondal
Faculty Guide: Prof. Prabal Kumar Sen

Abstract : The objectives of this study are: 1. To understand the various credit
sources that families use, cost of credit, terms and conditions and
the loan operandi used by the moneylenders, 2. To understand the
cash flow, income & expenditure scenario and the credit requirement
of the families of different categories and 3. To asses the feasibility
of initiating a Micro Finance Institution in Jhabua district.

The scope of the project was restricted to the eight blocks of Jhabua district. These
were Jobat, Alirajpur, Meghnagar, Thandla, Ranapur, Rama, Kathiwara and Jhabua.
Two villages from each block were selected for conducting the detailed research. The
methodology used involved 32 FGDs, administration of 48 detailed questionnaires
among villagers in 16 villages across the 8 blocks of Jhabua district. Apart from
these, semi-structured interviews were also held with the bank mangers, traditional
moneylenders and various development professionals working in the area. The
secondary sources of data included books and journals on microfinance and web
resources. The sample was chosen after stratifying all the villages of the district into
three categories on the basis of three indicators of their relative prosperity.

The groups are functioning more as savings and credit groups rather than SHGs. (2)
The total credit requirement of the district was found to be Rs. 2994793750. (3)The
bankers complained of lack of monitoring of groups by the NGOs, while the NGOs
blamed the banks for target oriented loaning as the reason for the high default rate of
the SHGs. (4) Migration was perhaps the only source of cash income for most
households where they work as wage laborers, while social expenditure of the
families was found to be extremely high. A sizeable amount was also being spent on
alcoholism (5) Informal sources were the primary lenders to the households and their
interest rates ranged from 50 to 150% per annum. (6) ASA had an inefficient MIS. (7)
ASA lacked competent staff capable of working in an MFI. It was found to be a prime
reason of the inefficiency in the payment rates of service charges by the SHGs. (8)
On analysis it was found that the repayment rate and the interest rate differential
were critical factors for the feasibility of the MFI.

Based on the findings and the analysis done by us culminated in the following
recommendations (1)The critical factors needing immediate attention are the
monitoring systems and procedures, human resource development and capacity
building of SHGs.(2) In order to improve the monitoring system emphasis needs to
be laid upon staff incentive structure, MIS and internal audit.(3)Other important
aspects needing attention are: establishing institutional linkages, a good governing
board, better financial and operations management, efficient use of the MIS software,
diversification of sources of funds, move towards Self-sufficiency and financial
standing in the long run. (4) finally ASA should not neglect the needs of the poor and
target better-off people in search of financial sustainability.

26
14. Project: A State Level Assessment of the Micro-finance Sector to Facilitate the
Strategic Planning for the Development of Micro-Finance Institutions in Jharkhand
(2006)

Participants: Naveen Kumar Mallik, Kumar Amit and Kumar Prashant (2004-2006)
Organisation: Friends of Women World Banking (FWWB), Ahmedabad
Reporting Officer: Mr. Ashutosh Kumar, Programme Officer, FWWB, Ahmedabad.
Faculty Guide: Prof. H.S. Shylendra

Abstract : The Objectives of the study are: 1) To asses the micro finance scenario in
the state of Jharkhand at three levels: (a) Apex level (Government’s programme and
policies and other financial institutions’ plans and policies regarding microfinance),
(b) Organisational level (to asses the strength and weakness of the organisations
which are willing to do Micro Finance) and (c) assessment of credit need of potential
clients. 2) Suggest a strategic planning for development of MFIs in the state. 3)
Suggest potential partners in Jharkhand for FWWB.

We adopted different methodology to study the microfinance scenario in the state at

different levels using discussions and semi structured interview with government
development institutions, financial institutions, and NGO officials as well as some of
the academicians of prominent educational institutions. Visits to the organisations
and the study of their documents were done. Focused group discussions with SHG
members, client level surveys were done. Lists of organizations working in Jharkhand
were obtained from various sources like financial institutions, NGOs and academic
institutions etc. To find out the NGOs working with women SHGs we used snowball
sampling. To assess the capacity of organizations we used the tools provided by
FWWB which is based on different parameters like governance, managerial factors
and financial factors. At the client level we used judgemental sampling in
administering the questionnaire.

The main limitations study were: 1. Due to harvesting season we found it difficult to
find respondents at the household level and 2. due to large geographical spread and
lack of proper means of transportation we could not visit all the organizations which
were identified by us.

The major finding of the study were: 1. Microfinance as an activity is still in its
nascent stage in Jharkhand, 2. The government development institutions and
financial institutions like commercial banks and NABARD are trying to promote SHGs
and microfinance as their core activity, 3. The annual micro credit need of the state is
at the tune of Rs 1000 crores (where the average credit need of the individual client
in different clusters varies from Rs 11000 to Rs13000 annually), 4. As it came out
from the survey most of the people are of enterprising nature and want credit either
for working capital or to start a new enterprise, credit need for asset building,
consumption purpose and for services is very less and 5. The perception regarding
the application and utility of MF in the state was different among different
organizations.

Based on the study the main recommendations are: 1. FWWB would have to take
some proactive steps in Jharkhand to spread microfinance, 2. Apart from credit
supply initially FWWB should provide some infrastructural and capacity building
support to the organisations which are willing to start microfinance activities, 3. On
the basis of our organisational assessment we found out nine potential partners for
FWWB in the state and FWWB can start work with them and 4. FWWB may get
competition from commercial banks, BASIX and from local money lenders so it would
have to match these through adequate product designs.

27
15. Project: West Bengal: A State Level Assessment of the Microfinance Sector to
Facilitate the Strategic planning for the Development of Microfinance
Institutions(2006)

Participants :Gyaneshwar Ranjan and Kausik Chakraborty (2004-2006)

Organisation : Friends of Women’s World Banking, Ahmedabad
Reporting Officer : Ms. Amrita Kumari, Programme Officer
Faculty Guide : Prof. Shiladitya Roy

Abstract: The main objective of the study are: 1. To Assess the Macro-environment
of MF in the State in a way to analyze the strategy of the Apex Agencies, situation of
the Intermediaries, condition at the Clients’ Level, to Suggest the Future Plan of
Action for FWWB, identify the Future Partners and facilitate the future strategy by
evolving various Issues at the Different Levels from the Study. The scope of the
study is confined to the three areas of West Bengal i.e. the Central Plains Region
(Kolkata, Nadia, East 24 Parganas, West 24 Parganas and Howrah), the Western
Plains Regions (East Medinipur, West Medinipur, Bankura and Purulia) and the
Himalayan Region (Jalpaiguri and koochbihar).

Extensive field visits have been done for collecting information from all the levels
starting with the structured and semi-structured interviews of different development
agencies such as NABARD, SIDBI, Departments of State Government and Banks
etc. Discussions have been done with the selected NGOs/MFIs from different regions
based upon the checklist. And lastly, information has been collected both at
individual level and at group level using a questionnaire and checklist. Individual level
information was aimed at mapping the credit requirements of the beneficiaries of the
MFI. Group level information helped in identifying weaknesses of the existing
structure along with convenient procedures and delivery mechanism for the MFIs.

The study concludes that microfinance in the state is in the take off stage due to a
large number of Micro-finance Institution (MFIs) having started their operations there.
But, they are confined mainly in the Central region and MF activities in other regions
are mostly being done under SHG-Bank linkages’ programme of NABARD and
SGSY scheme. The apex agencies such as NABARD, SIDBI and Govt. Departments
(Central and State) are also focusing on microfinance in a big way through different
schemes and strategies. Besides this, CARE, WB and FWWB, Ahmedabad are also
nurturing & promoting some MFIs and showing their presence through them
substantially. Various issues came to knowledge by discussing with the MFIs
basically regarding legal sanctity, structural modality, capital base, outreach in terms
of spatial presence and clients’ base besides the other factors such as
Institutional/Governance, Managerial and Financial for the sustainability and
development of MFIs. Clients’ survey and focus group discussion identified the
benefit accrued and the potentiality of microfinance in the regions. The study helps to
facilitate the future strategy by identifying probable partners of FWWB as well as
categorizing them according to their strengths and weaknesses at various
parameters under institutional/governance, managerial and financial (wherever
possible) so that appropriate planning can be done to support them. The study also
incorporates the region specific issues and future credit demands of the clients for
depicting the broad scenario under microfinance, which will help in strategic focus of
FWWB regarding the state.

28
16. Project: Designing financial services and systems for rural migrants of South
Rajasthan (2006)

Participant: Ruchi Agarwal (2004-2006)

Organization: Aajeevika Bureau Trust
Reporting Officer: Mr. Krishnavtar Sharma
Faculty Guide: Mr.Ashutosh Verma

Abstract: The objectivesof the study were: i) Reviewing and undertaking studies on
financial gaps and need of rural migrants; ii) Assessing the existing financial
environment and facilities for meeting such needs; iii) Appraising the impact of
Migration Support Fund of the Bureau; iv) Designing afresh financial schemes and
services for the rural migrants; v) Formulating systems of appraisal, payment,
remittance and repayments in relation to the fund. The study was confined to the
rural migrants of Gogunda block of Udaipur district. The methodology involves
collection of information both from primary sources like surveys, group discussions
and various secondary sources and then proposing the financial services needed
along with the systems to deliver them.

The major findings of the study are : i) Financial gaps and need of rural migrants:
These needs were assessed by finding various information relating to financial flows
pertaining to the rural migrants keeping in view both the locations: source and
destination. For instance : Their sources of income, actual income, pattern of income
flow at source and destination, credit requirements pre migration and post migration,
sources of credit, current savings and potential savings, insurance needs and the
requirement of remittance facilities. ii) Existing financial environment and facilities:
Both the formal and informal financial service providers were studied. The block has
2 state bank branches and 17 Sahkari Samitis but most of them are reluctant to cater
to the credit needs of the migrants. Besides, the informal institutions including money
lender charge exorbitant interest rates. Moreover, they did not have any facilities to
cater to their savings and remittance needs. iii) Reviewing Migration Support Fund: A
pilot test was undertaken by the Bureau which involved disbursing a total amount of
Rs1.5 lacs to 30 migrants on the individual basis both for consumption purposes and
productive purposes. The repayment schedule was fixed based on their
convenience. The review revealed that the default rate is as high as 76 percent.

iv) Proposed financial schemes and services for the rural migrants: The proposed
financial services involves savings with the banks, services for remitting money from
destination to the source, different loan products having differentiated repayment
schedules meeting the needs of both the short distance and long distance migrants
and finally a few insurance schemes suitable to the migrant needs. v) Systems and
procedures to be followed in providing the financial services: The system would entail
setting up resource centers or just extension counters at major destinations like Surat
, Sumerpur and Palanpur. The remittance service would be provided through the
bureau’s centers at source and destination and the migrants availing the services
would be required to have a monthly saving account and Bureau’s role would be act
as a facilitator, thereby assisting the migrants in opening the bank accounts. For
lending, a group based model has been proposed, whereby 4 to 6 migrants would be
forming homogeneous groups both at source and destination and loan would be
given to individuals.

29
17. Project: Urban Microfinance - Reaching Urban Poor Through Multi-level
Individual Lending Model (2006)

Participants : Nitin Korepal and Vandana Lohia(2004-2006)

Organisation : ICICI Bank Ltd
Reporting Officer :
Faculty Guide : Prof. Shiladitya Roy

Abstract: The activities of micro-finance have been mainly centered on the rural
poor where the bulk of credit is provided against social collateral created through
various forms of joint liability groups. With the realization of the fact that the need for
loans and exploitation by alternative informal sources of finance are equally prevalent
in the urban areas, many formal financial intermediaries are aiming towards financing
this section of poor. However, the micro-credit delivery mechanism suitable for rural
areas prove to be inadequate for the urban settings on the account of the greater
mobility, lesser permanency, lack of legal possession of physical assets and
relatively higher ticket size loan demand. Commercial banks, which are the most
active financial intermediaries in urban areas, find it difficult to lend directly to the
urban poor owing to the higher transaction cost involved in the low value-high volume
micro-credit business. Also, the absence of any microfinance institution prevents the
commercial banks to adopt partnership model of financing thereby transferring some
part of lending risk. These factors necessitate the development of an alternative
model of individual lending for the commercial banks to finance the urban poor.

The present project aims at using the concepts of multi-level marketing (MLM) to
bring in the personalized touch in micro-credit delivery and counter balance the effect
of greater mobility and the need for collateral. In this model, a person in the urban
slums will be required to select, screen the potential borrower and ensure
repayments. This minimizes the risk of default and increases the reach of the
commercial banks in the urban slums. Hence, the objective of the project is to design
a profitable, scalable and replicable model of credit delivery for urban poor using the
concept of multi-level marketing. Specifically, the project aims at conceptualizing and
developing a microfinance model using MLM concepts, developing the process flow
of the micro-credit delivery under this model, developing screening criteria for the
prospective borrowers, developing the seasoning process flow, and drafting the
content of training manual and marketing tool kit for the referrers. It also aims at
enlisting the potential risks or eventualities that may arise in implementing the model
and their mitigants.

The Multilevel Referral and Individual Lending (MLRIL) model uses the preexisting
social linkages within the community in place of the unverifiable credit history of the
borrowers. The capacity to repay is measured with the screening done at the
intermediary organization. A savings habit verification is done and the borrowers who
fail in this test are seasoned to inculcate savings and repayment habits. Apart from
these processes, the borrower also undergoes training from his/her referrer to turn
him/her into a referrer. The training is received in different stages at different levels of
progress of the chain. The borrower receives his/her first level of training from the
referrer while the referrer is marketing the loan product. The marketing involves need
generation and invoking latent demand, which would become crucial in the later
stages of chain progression. The borrower, before turning into a referrer, undergoes
a test that assesses his/her capability to become a referrer. This way, rapid and
uncontrollable expansion of the referral chain can be avoided, and also the possibility

30
of individuals unfit to become referrer also goes down. The referrer after selecting
four referrals again trains them regarding the repayment requirement stressing on the
incentives. Once the borrowers enter the repayment period, the job of the referrer
then is to assert repayments by periodic monitoring and meetings. During this period,
he/she also explains in detail the multi-level referral model stressing on long term
incentives. The incentive for the referrer in this process is monetary as well as non-
monetary in nature. The referrer receives a fixed commission as a percentage of loan
portfolios being handled by him/her. S/He is also entitled to progressively reducing
interest rates on loans taken by him/her after each batch of referrals repay. In case of
default by the referral, a check is done to assess the nature of default (willful or non-
willful) after which the incentive to the referrer is decided. The referrer, after the
completion of four successful loan cycles (his own as well of his referrals) is entitled
to a cheap credit and training from the intermediary organization to setup his own
entrepreneurial venture. The referrer is tested after each cycle of referrals on his
ability to continue as referrer as each time he/she referrers a completely new set of
referrals. S/He is rated based on the feedback from referrals.

18. Project: Mobilizing support for providing innovative insurance services to the
poor (2006)

Participant: Dipi Gupta (2004-2006)

Organization: ICICI Prudential Life Insurance Co. Ltd
Reporting Officer: Ms. Preeti Mishra
Faculty Guide: Prof. Ashutosh Verma

Abstract: The focus of the present study has been on exploring the possibility of
partnering with organizations that will help ICICI Prudential in intensifying its efforts in
the rural areas. This includes organizations that can help in building more relations in
the micro-insurance sector as well as national and international donor agencies.
Accordingly, the objectives of the study are (i) to identify the potential donor agencies
and other linkage building organizations (ii) to prepare a draft funding proposal for
presentation to the interested agencies (iii) to explore the convergent areas of
interest and facilitating a tie up between the organization and the company.

The study was done in three phases. In the first phase, an exploratory research was
done to identify the potential organizations. A list of 38 organizations including both
funding and networking organizations was prepared. The next step was the
designing of a funding proposal which was to be presented to the interested
agencies. The proposal was designed in consultation with the reporting officer. The
same proposal was presented to the 12 organizations. These organizations were
classified as donor and linkage building organizations. Telephonic interviews, e-
mails, checklists, internet were used as the data collection tools. The social benefit of
the project has been assessed in terms of 6 aspects- worth to clients, cost to clients,
depth, breadth, length and scope.

The main findings of the study are : (i) The proposal envisages capacity building
initiatives of the NGOs/MFIs and a pilot project making insurance as a tool for
employment generation for the poor. (ii) The partnership proposal is likely to be a
win-win partnership model for all the stakeholders. Apart from building the capacities
of the NGOs/MFIs, the project is expected to cover 12.8 lakh people and generate an
income of Rs. 43785 for the poor. (iii) The success of the pilot project is contingent
upon the identification of credible NGOs and MFIs in the area of operation as well as
the skills of the staff in motivating the people to buy insurance. (iv)There was very
limited knowledge amongst the organizations approached about the rural operations
of the company. (v) The organizations had reservations against ICICI Prudential

31
seeking funds for its rural operations. (vi) The grant giving decisions of the donors
are based on multiple factors like Government’s policy, the prevailing conditions, the
details of the project, the beneficiary base etc. Mostly funds are routed through
Government or NGO/MFI. (vii) The worth of the products with respect to the
premium, sum assured, maturity period etc is an important condition that is usually
looked after by the organizations. Organizations such as Care India, Agha Khan
Foundation, Great India Dream Foundation look for a product designed as per the
saving propensities and the socio-economic condition of the people in the region in
which they operate.

Based on the study the main recommendation are: (i) There is a need to re-look at
the product portfolio to offer a wider array of choices to the partnering organizations.
(ii) The north-eastern part of the country is becoming the priority area of operation for
most of the organizations. This region can be explored through a tie-up with Care
India or Sa-dhan. This can be followed by routing the proposal through them for
getting funds to carry the operation. (iii) Tie ups with RRBs can also be looked as an
option as most of the insurance companies have already made a step in that
direction. (iv) The scope of the proposed pilot project can be restricted to one state in
the beginning to test the replicability implications of the project. (v) The company
should undertake information dissemination initiatives to spread awareness among
the donor community and the linkage building organizations about the successful
models it has developed over the years based on its experience in the rural areas.

19. Project: To study the Profile and identify the High Net-Worth Individuals (HNI)
as potential customers for Life Insurance (2006)

Participants: Alok Modi, Amit Kumar Mishra, Saurabh Kumar Sinha (2004-2006)
Organization: ICICI Prudential Life Insurance Company Limited, Mumbai
Reporting Officer: Mr. Srinivas Revanur
Faculty Guide: Prof. S. K. Mitra

Abstract: The main objectives of the study were 1.To study the profile of HNI
customers across different clusters of ICICI bank and 2. To identify the potential HNI
customers and to find the approach points to them. The scope of the study included
different locations across the country. The specific thrust being on the APMC traders
and other agri related traders. The study was undertaken using both primary and
secondary data sources. The study included field visits, case studies, interviews and
informal discussions with APMC staff, interaction with bankers, discussions with
Traders, and Internet. Primary data was collected from field visits. Secondary data
was gathered from records of ICICI, Office of the APMC, and different trade
associations.

The study found that there is a large untapped potential for the Unit Linked Insurance
Plans (ULIP) in the Agri-trade and rural sector. The traders are mostly undercovered
as compared to their requirements to life insurance cover. The existing relationship
base of ICICI bank can be leveraged for cross selling. However there is a need for
enhanced coordination with the ICICI bank. Also there is a need to augment the
training and the manpower of the field staff. The concept of ULIP and the HNI
policies as a combination of life insurance and investments is a new idea to push its
way through the present mindsets. The positive leverage in this direction is the
flexibility of payouts, the control of investment options and the tax benefits that are
inherent in a life insurance plan.

The study recommends that the agri traders in the APMC market yards and the
traders in the agri related trades are the potential customers for the HNI policies of

32
ICICI Prulife. These customers provide a good lead to enter the market in a particular
location. Also these are the people who are grossly undercovered due to lack of
proper awareness on different issues related to the life insurance.

20. Project: Pre-Incubation processes of Microfinance Institutions and Road Map

Ahead (2006)

Participant: Ms. Pragna Kolli (2004-2006)

Organization: Indian Institute of Management, Bangalore
Reporting Officer: Ms. Saleela Patkar
Faculty Guide: Prof. S.K.Mitra

Abstract: The main objectives of the study are : 1) Participate in the team work for
the creation of Business Incubator at the Indian Institute of Management, Bangalore
and, 2) Provide a road – map for the Incubator for the year long mentoring of the
selected Organizations starting Jan. 2006. The study involved understanding the
host organization for incubation (IIMB) – its resources and constraints; the five start-
up organizations selected for Incubation – their needs and constraints for going
ahead with their operations. Though Business Incubation is a well known subject and
despite the existence of business incubators throughout the world, replication of the
recommendations of this study may not be advisable without contextual relevance.
The study was based on primary sources of data (interviews) from the employees of
the host organization and the tenant organizations as well. It also involved literature
review and interviews with industry experts for opinions and comments. Assistance in
preparing training material was done.

An Incubator needs to nurture the start-up organisations in their early years of

establishment by providing a wide range of services. It was found that a proper
market study of the demand for Incubation, a good financial base, efficient human
resources with basic working knowledge and imparting capacity, Goodwill to attract
customers (Trust), the ability to select the right clients which are in tune with the
philosophy of the host organization, a better understanding as to why do businesses
fail, efficient operations, good networking for business support services and funding
for the clients and also the flexibility to reconfigure as per the changing needs of
clients and grow as the number of clients increase all become essential for survival of
the Incubator. Lacking any of the above qualities would lead to risk and hence failure
of the Incubator.

Recommendations for the pre-incubation training of the tenant organizations were

made and implemented simultaneously during the project period. Other
recommendations for the year-long mentoring were also made: The IIM though is rich
in its resource base, it is essential to have a larger team working. Recruitment of staff
for mentoring is required. Interlinking the 7-Ss for the tenant organizations can help in
integrity of operations for the tenants, bringing in the 5 tenant organizations to form a
Knowledge Bank to share information, Phase wise training for the Senior Mgmt
instead of a one time program, utilizing the knowledge and research base of IIM for
innovations in the processes of the organizations, achieving the first year targets for
the tenants as mentioned in the business plan can be seen as a bench mark and for
further planning, it has to be however remembered that, processes cannot be ignored
in the run for targets. Also the incubator should not take decisions, but only help them
take decisions. The idea is only to support in running and not running itself. Once the
1st year target is achieved, processes can be reviewed to ensure efficiency in
operations and financials and exiting strategy can be planned for.

33
21. Project: Study of Credit Co-operatives for their fiscal health and their Willingness
and Readiness to link with Formal Financial Institutions. (2006)

Participants: Anshul Goyal, Prashant Banerjee (2004-2006)

Organisation: ICICI Bank Ltd (RMAG), Mumbai
Reporting Officer:Mr. Ajay Desai, Chief Manager
Faculty Guide:Prof. Prabal. K. Sen

Abstract: The main objective was to study the fiscal health of the credit co-
operatives and check their willingness and readiness to link with formal financial
institutions. The geographical scope was restricted to the Pune and Nagpur regions of
the State of Maharashtra while the institutional scope was limited to the District Central
Co-operative Banks (DCCBs), Urban Co-operative Banks (UCBs), Urban Credit Co-
operative Societies (UCCSs) and Micro-finance Institutions (MFIs).

In the first phase of the study, eight districts were selected for the sample survey with
the help of available secondary data and consultation with some of the experts in the
field of co-operative banking. In the second phase DCCBs and UCBs of these districts
were visited for collecting information about UCCSs. The various personnel of UCCSs
were interviewed and financial data was collected from these societies. In the third and
last phase the collected financial data was analyzed for the purpose of our study.

The major findings of the study were: (1) The co-operatives have customized saving
schemes to cater to the members’ needs. (2) With the exception of educational loans,
various kinds of loans those are being sanctioned by commercial banks like home loan,
vehicle loan, personal loan, trade loan, etc. were being provided by co-operative
societies also. (3) Almost all the branches that we visited were computerized and the
branches were housed in well-furnished, aesthetically designed and well-build
premises, situated in prime locations within the town. (4) The co-operatives were of the
view that local contacts and personal relationship with the members were the key to
their success. (5) The co-operatives have wide reach bordering on ubiquitousness. (6)
The employees are not highly skilled vis-à-vis the vision to take the “next leap.” (7)
There is intense political interference in the functioning of the co-operatives. (8) The co-
operatives did not show enthusiasm for the latest initiatives happening in the field of
Micro-finance and hence are unwilling to lend on Joint Liability Group basis (JLG) as for
them such lending is unsecured lending. (9) The co-operatives with the possible
exception of a few are all flushed with funds. (10) The co-operatives cannot conduct
business outside the co-operative sector without amending the by-laws and getting the
same registered with the Registrar of Co-operative Societies.

The main conclusions and recommendations of the study are: (1) The co-operatives are
afraid of the increased amount of the paper work to be undertaken consequent on
conducting business in partnership with formal financial institutions and they will also
wary of the resultant transparency that it would entail. (2) Due to the abundant
availability of funds the co-operatives feel no necessity to form partnerships with formal
financial institutions. (3) The co-operatives distrust the formal financial institutions and
think that any form of partnership can prove to be their nemesis, in the long run. (4) The
co-operatives need to be made aware of the Micro-finance concept and their managers
need to be trained for successfully conducting the same.

34
22. Project: Enhancing Rural Banking and Financial Services at Grass root level
(2006)

Participants: Chaman Kumar and Umanath Mishra (2004-2006)

Organisation: ICICI Bank Ltd (RMAG)
Reporting Officer: Mr. Utpal Isser Chief Manager (RMAG), ICICI BANK, Mumbai
Faculty Guide:Prof. Prabal. K. Sen

Abstract: The objectives of the project were: (1) Assessing the needs of the potential
rural borrower through value chain analysis (2) Identifying potential channel partner
within geographical area of study (3) Declaring the district no white space (NWS) with
access to financial services within 10 Km of radius of a potential bol Tower. The
study was carried out in all the 14 Talukas of Ahmednagar District in Maharashtra.
The Methodology of the study included: (1) Discussion with the managers
(commercial banks, LIC, GIC), channel partners, prospective borrowers and the
borrowers of commercial banks (2) Discussion with various government officials (Zila
Parishad, Officer of the sugarcane growers cooperatives, Deputy district registrar)
and Interviews with the agro input dealers. The sources of data for the study were
both primary and secondary. The primary sources included, existing channel
partners, agro input dealers across various Talukas, managers of various commercial
banks, LIC, GIC and Insurance agents. farmers, arthiyas and APMC staff. The
secondary sources included data from Lead Bank office, Ahmednagar Zila Parishad,
Statistical Department, Ahmednagar district cooperative bank (ADCCB), Talathi
office, and Data from various public sector banks, IJIC and GIC.

The major findings of the study were : (a) Area wise Ahmednagar is the largest
district of Maharashtra and it is one of the major agriculturally rich districts. (b)
Ahmednagar district has total area of 17 lac hectares with 3.6 lacs hectares of
irrigated land and only 3-4 Talukas as drought prone (c) Mula canal and Bhandardara
canal are the major sources of irrigation (d) Growing of Onion, Sugarcane, Jowar,
Bajra and Horticulture are major farm activities while poultry and cattle rearing are
the major non farm occupation.( e) Presently 13 sugar factories are functioning in the
district.(f)There are 208 commercial bank and 289 ADCCB branches with C/D ratio of
65%(g) Presently ICICI bank is having credit franchisee in 7 blocks only and non
credit franchisee in 27 star villages out of 108 star villages (villages having population
>5000) under its NWS project (h) In financial year 2004-05, none of the commercial
banks in Ahmednagar district were able to achieve the target of crop and agri. term
loan set by lead bank of the district, as against the target of Rs.375 crore in crop
loan, the achievement was only 36% and in case of agri term loan, against the target
of Rs. 144 crore achievement was only 72% (i) Interest rate charged by ICICI bank is
comparatively higher than that of PSBs and ADCCB (j) Major hatchery groups like
Saguna, Venkateswara and Godrej are present in the district.
Conclusion: (a) Ahmednagar is a drought prone district yet agriculture is the spinal
cord of the economy of this district (b) There is much scope for ICICI bank in the
priority sector lending as in the last financial year 2004-05, all the commercial banks
in Ahmednagar district were not been able to achieve the target of crop and agri.
term loan set by Lead bank of the district (c) O.bjective of NWS is yet to be achieved.
(d) Scale 0 f finance is not in consonance with that 0 factual cost 0 f cultivation /acre
and value of 0 ut
put/acre and presently it has been overestimated in case of ICICI bank and under
estimated in case of PSBs and ADCCB.

The main recommendations of the study were : (a) Place CF (credit franchisee) and
NCF (non credit franchisee) in rest of the blocks and star villages respectively (b)
Prepare block wise credit plan based on crop wise average area under cultivation

35
and other socio economic parameters of the respective blocks (c) Club crop
insurance with
crop loan (d) Allow the potential borrowers to directly access the bank branch so as
to reduce the dependency on the CFs for business and reduce the complacency of
Bank staff (e) Create sound' mechanism for follow up of the repayment of loan (f)
Rationalize interest rate (g) Impart training to the CFs and NCFs so that they can be
able to disseminate right inforn1ation to the farmers (h) Provide information
handbooks in vernaculars to the channel partners (i) Launch promotional activities
required so as to spread more awareness about the products to the farmers (j)
Devise Code of ethics for the channel partl1ers so as to reduce loss of reputation to
the bank (k) Provide for rewarding the performing Channel partners.

23.Project Title: Market potential for micro-finance in the state of karnataka &
strategic blueprint for grameen koota for five years (2006)

Participants: Rahul K. and S.Sairam (2004-2006)

Organisation: Grameen Koota, Bangalore
Reporting Officer: Mr. Suresh . K
Faculty Guide: Prof. Prabal Kumar Sen

Abstract: The objectives of the study were : 1. To estimate the demand for micro
finance services (Rural & Urban) for potential clients in the state of
Karnataka, 2. To estimate the supply of microfinance services (Rural &
Urban) available from various sources like banks, MFIs etc in the state of
Karnataka, 3. To find out the demand supply gap (Rural & Urban) and 4. To
suggest a strategic blueprint for Grameen Koota for next five years.

The study involved use of a mix of primary and secondary sources of information for
achieving the above mentioned objectives. These could be further
separated into. Primary data collection: The study involved primary research
by undertaking multistage sampling to find out the current/future credit
requirements, sources of credit etc. Two focused group discussions were
conducted to help formulate the questionnaire and it was piloted in one rural
and one urban area. The total sample size for both Rural and Urban sample
was 740. Data was analysed using SPSS (Statistical package for social
sciences) and Factor analysis (a statistical technique) was used to find out
key factors influencing client-borrowing decision. Secondary research:
Detailed discussions and literature review with lenders, funders,
competitors and regulators were undertaken to facilitate understanding of
the present supply (products, services & quantum), present and future
regulatory requirements and existing models of lending. The supply from
informal sources was estimated on the basis of data made available from
primary data collection.

For the strategic blue print, a SWOT analysis of Grameen Koota was undertaken
after studying the working of various departments of the organization, opportunity
and threats were identified after doing a competitor analysis and studying the present
and future regulatory requirements and a final strategic plan was suggested based
on the demand-supply gap estimated and the competencies of the organization.

36
The main recommendations from the study are that with regard to the legal structure,
Grameen Koota should convert into an Non banking finance company.
Further, for the organogranisation structure, Grameen Koota should have a
functional structure. The Strategies that Grameen Koota can follow in Rural
areas are diversification , consolidation and product development and for
urban areas, the strategies that Grameen Koota can follow are
diversification and market Development

24. Project: Drawing policy lessons from studying the PACS of Sreedharpur and
Tungi SKUS in West Bengal and the Women’s Fisheries Cooperative in Darbhanga
in Bihar (2006)

Participants: Samrat and Ajay (2004-2006)

Reporting Officer : Mr. Sripathy Rao
Organization: BASIX, Hyderabad.
Faculty Guide:

Abstract: The study was undertaken as a part of the management Traineeship

Segment of the course of Post Graduate Diploma in Rural Management at IRMA.
The objective of the study was to draw some policy lessons from some selected
PACS for understanding the factors responsible for the success of these PACS. The
study was done as an exploratory research. The primary data was collected through
semi-structured interviews of the PACS management, employees and the Assistant
Registrars of the cooperatives. Focused group discussions were conducted with the
members of the cooperatives. The secondary data consisted of the review of
literature including bye-laws, balance sheets and audit reports. The study is limited to
the study of the three cooperatives of Sreedharpur and Tungi in West Bengal and
Darbhanga in Bihar.

The cooperatives showed practices which reflected in their governance and HR

policies. The Lessons for Cooperative Development were for Governance are :1.
Board members should personally take responsibility in cooperative’s daily operation,
2. Managing Committee should meet every week to appraise performance, 3. There
should be re-lection of board members every year and 4. Creation of extended body
that comprises of ex-chairman, secretary, managers grooms next rung of leadership.
For Human Resource, the recruitment of local employees provides operational
flexibility with lower costs and salary and compensation can be linked to the financial
performance of the cooperative. With regard to MIS a. Centralized accounting system
and Internal auditing every week or month and for operation, designing products
which central to member’s need with a prior demand estimation through the
submission of indents from the members is needed.

The main lessons for Livelihood Promotion for LFS are 1. Expert determined loan
product minimizes risk of crop failure, 2. Loans against the produce stored in
godowns and products like jewel loans and other consumption loans like loans
against utensils etc. avoid distress selling and mitigate risks and 3. designing
products like the Monthly Income scheme not only promotes savings but also
provides a good assured income source to the people. The main lesson for Ag/BDS
is that promoting activities like Soil Testing not only saves cost to the farmers but
also leads to optimal and sustainable use of resources and with regard to IDS
organizing customers in groups like the Farmers Club and Special Youth clubs form
innovative service delivery channels, predominantly in credit and they also increase
the cooperative’s outreach.

37
25. Project: Impact of direct loan for alternative income generating activity under
Jeevika (2006)

Participant: Rakesh Kumar (2004-2006)

Organisation: Jeevika, Self Employed Women’s Association (SEWA)
Reporting Officer: Ms.Trupti Trivedi (Asstt. Project Coordinator)
Faculty Guide: Prof. Ila Patel

Abstract: Under Jeevika project, direct lending to individual members of SEWA was
initiated in the year 2004 through its village level committee called Jeevika SEWA
Mandal (JSM) targeting the poorest of the poor to pursue micro-enterprises so that
they can uplift them individually, socially and economically. The first cycle of loan is
almost complete in most of the villages and members are about to repay the loans
with interest completely and they are waiting for second lot of disbursement of loans.
This project is meant for assessing the impact of direct loans on the beneficiaries.

The main object of the project research would be (i) to understand the interventions
of SEWA under Jeevika, (ii) to know the process of direct lending to the poorest of
the poor under Jeevika, (iii) to assess the benefits accrued to the poor through direct
loan in their perception and (iv) to appreciate the management and repayment of
money by the beneficiaries. The study was confined to nine of the twenty villages in
two blocks (Radhanpur and Santalpur) of Patan district of Gujarat for impact
assessment of direct lending based on members feedback. Case studies of individual
members in each of the nine villages were covered for capturing comprehensive
impact assessment including the prevailing circumstances in the villages. The
research was descriptive by design. A comprehensive questionnaire containing the
questions on self-concept, social and economic empowerment was administered with
the help of SEWA organisers, semi-structured interviews of individual beneficiaries
and Jeevika functionaries were held, focus group discussions of beneficiaries were
also conducted. Primary sources include data collected through semi-structured
interviews and focussed group discussions during visits to the villages; discussions
with Jeevika functionaries. A basic datasheet was developed to cover the necessary
quantitative data and members’ profile. Secondary sources include reports of past
studies and review of documents at village and taluka levels.

There has been considerable improvement in income, employment, health and

education fronts: (i) Most importantly, their food expenditure has reduced and has
spread over health, education of children, clothes and after repaying the loans they
have started saving regularly to build asset base. (ii) Their decision making capacity
and involvement in community life has enhanced. (iii) Though there was less gender
disparity in the region, girls’ access to nutrition, health and education has improved in
most of the villages. In some villages, girls’ say in the marriage has improved. (iv) On
personal front, self concept of the members has certainly boosted especially in
successful cases. (v) On the other hand, there were as much as 23 percent of the
cases where members are not able to repay the loans and are unable to enjoy the
fruits of the program. Reasons for non repayment of loans were illness, business
failure, irregular income, natural calamities like draughts and floods, inadequate
income and in some cases loose monitoring. (vi) The overall impact of the program is
more visible in villages near the main market (Radhanpur) than that of in remote
villages.

The study recommends that micro- enterprise should be selected on the basis of
technical know-how, market feasibility, available infrastructure, compatibility with age,
family size and scope of alternative activities. JSM which is village representative

38
body of all castes and community should include experienced and more aware
people and JSM members should be given proper incentive to spend their valuable
time. Lastly, more efforts should be put on remote villages which require more
attention and energy of the program.

26. Project: Enhancing Rural Banking and Financial Services at Grass root level

Participants: Narendra Singh Sonigra and Prabhat Kumar

Organisation: ICICI (RMAG), Mumbai
Reporting Officer: Mr. Utpal Isser (Chief Manager)
Faculty Guide: Prof. Prabal Kumar Sen

Abstract: The objectives of this study were to find the ways and means for
enhancing rural banking and financial services at grass root level. This includes
identification of economically viable locations from bank's point of view (i.e. major
production and trading centre, number of creditworthiness people and depositors)
and identification of suitable partners for making the services available to the users,
value chain of major commodities of the area and the people's requirement about the
kind of the financial products. The study was limited within the two districts of Gujarat
state named Mehasana and Patan. The methodology consists of preliminary
literature review regarding the increase in the penetration of banking and financial
services in the rural sector, collection of data regarding the I perfonnance of the
existing banking and financial institutions like cooperative and scheduled commercial
banks, insurance companies, and credit cooperatives working in the two districts. In
addition to this we were given a list of all the villages of two districts out of which we
had to cover all the villages having population above 5000 in order to identify the
economically viable locations. In addition to this we used s!lowball sampling to
identify the economically viable location for the presence of channel partners. For
identifying the major commodities we visited the Agriculture produce marketing
committee (APMC) and collected information regarding the arrival and the prices of
major commodities.

Though most of the large villages (having population more than 5000) are having
access to the fonnal banking and financial institutions but even today the small
villages that are large in number lack this facility. There are many banks and credit
cooperatives are working in the rural sector but again they are present mainly in large
villages. Credit cooperatives are mainly caste or community based excluding people
outside this boundary. The reach of banks especially the commercial banks are
severely restricted in terms of the number of branches working in the rural sector.
Similarly the reach of the credit cooperatives are restricted to their members only
which is again very few in number. But having a branch at every village is not
financially sound option. So working with people or institutions that are already
present in the above mentioned places can increase the availability of banking and
financial services at the grass root level.

The increase in the presence of the channel partners will increase the penatration of
the banking sector in the rural areas. It will lead to the development of both the
banking sector as well as the rural economy of the country. Recommendation: There
are many models (some of which have been mentioned in the report of the internal
group to examine issues relating to rural credit and micro finance headed by
H.R.KHAN) which can be helpful in increasing the penetration of the banking and
financial services in the rural India. But in the context of Gujarat state working with
cooperative sector could be quite beneficial. Especially in case of Agri-inputs like

39
fertilizers, seeds, pesticides the present Farmers Service Cooperative Societies in
the villages and their federation (GUJCOMASOL) command about 75% of the total
trade in the Gujarat state. TIle rest 25% of the Agri-inputs trade is commanded by
private traders. And this 25% is highly fragmented among the 150 Agri -input
providers in Mehasana and Patan district. Both of these channels can play an
important role in increasing the presence of banking and financial services at grass
root level.

40
 3. Abstracts of Organisation Traineeship (OTS)
Projects
In this section, the abstracts of Organisation Traineeship Segment (OTS) reports on
microfinance sector are given. The abstracts are given year wise. A list of all OTS
reports on microfinance prepared during 2002-05 is given below.

OTS Projects on Microfinance, 2002-2005

Year of
Sr.No. Student(s) Title of the study Oragnisation
Submission
Develop Monitoring System
Manju Mary
for Loan Repayment by
1. George State Poverty
Micro Enterprises and their
Eradication
Performance
2003 Mission (SPEM)
Krishna V R,
Kudumbashree,
Manju Mary
Organisation Understanding Kerala
2. George, Manoj
“Kudumbashree”
Mohan Mohandas

Micro Level Credit 2003

Ajith D and
3. Requirement of Dairy
Bhagirath
Farmers
Mathew Income Generation
4. Vilayasseril and Programmes to be Imitated Malabar Regional
Robin P Mathew by MRDF Co-operative Milk
Producers’ Union
Ltd. Kerala
Ajith D., Bhagirath
Organisation Understanding
5. Iyer, Mathew V,
“Mrcmpu”
Robin P. Mathew

SWOT Analysis of the 2003

Hitesh Jain Seafood Industry and
6.
Financial Opportunities for a
Bank in the Industry
Abhishek Garg, Profiling of Agricultural Co- ICICI Bank,
7.
Prathibha Nair operatives Mumbai
Hitesh Jain
Abhishek Garg, Organisation Understanding
8.
Prathibha Nair “ICICI Bank Ltd.”

Ms. Aakanksha 2003 Friends of

Documentation of Women
Gupta, Mr. Mohit Women’s World
Self Help Group Federation,
9. Kumar Agarwal Banking,
ASARA in Indore, Madhya
Ahmedabad,
Pradesh
Gujarat
10. Vanya Sinha and Study on Restoring
Karuna Sharma Livelihood Activities in Kutch
after Earthquake

41
 Year of
Sr.No. Student(s) Title of the study Oragnisation
Submission
Ms. Aakanksha
Gupta, Ms.
Organisation Understanding
Karuna Sharma,
11. “Friends Of Women’s World
Ms. Vanya Sinha
Banking, India (FWWB)”
and Mr. Mohit
Kumar Agarwal

Developing a Quality
Assessment System for
12. Sangeeta Srinivas Mahila Abhivruddhi Society,
Andhra Pradesh (APMAS)
2003 APMAS,
Hyderabad
Nanabala
Lavanya Kumar Organisation Understanding
13.
and Sangeeta “APMAS”
Srinivas

Role of Self Help Group APMAS,

Venkata Subba
14. Federations as Financial H
Reddy G
Intermediaries yd
er
Kiran Kumar P 2004
a
,Srinadh Anne Organisation Understanding
15. b
,Subba Reddy G “APMAS”
a
V
d
Suvojit 2004
Chattopadhyay Product Design for Micro
16.
and Balakrishnan Finance
South Indian
Madhavankutty
Federation of
Balakrishnan M,
Fishermen
James Abraham,
Societies (SIFFS),
Jyoti Mishra, Organisation Understanding
Karamana,
17. Rajesh R, South Indian Federation of
Traivandrum
Rajpreet Kaur, Fishermen Societies (SIFFS)
Suvojit
Chattopadhyay
Nitin Srivastava Evaluation of Self 2004
18. and Prakash Employment Programme for Social Justice &
Kumar Weaker Section Empowerment,
Sudha Kant, Nitin Govt. of Gujarat,
Organisation Understanding
Srivastava, Gujarat,
“Social Justice &
19. Prakash Kumar, Gandhinagar
Empowerment, Govt. of
Rajneesh Pankaj
Gujarat ”
Impact Assessment of 2004
SM Sehgal
20. Abhishek Anand Income Enhancement
Foundation,
Activities
Gurgaon, Haryana
Organisation Understanding
21. Abhishek Anand
“SM SEHEGAL Foundation”

42
 Year of
Sr.No. Student(s) Title of the study Oragnisation
Submission
Ankur Shandilya 2004
Develop Tools/Parameters to Grameen Koota,
22. and Joginder
Identify Star Borrowers B
Ralhan
a
Arup Anand and Develop a Procedure For
23. n
Madhu V Appraising Staff Performance
g
Ankur Shandilya,
al
Amp Anand, Organisation Understanding
24. or
Madhu V, “Grameen Koota”
e
Joginder Ralhan
Indrajit Kumar and
Analysing the Dropouts of
25. Chandan
Micro Finance Programme
Batsayan
Analysing the Costing of
Naveen Kumar
Products and Services
26. Malik and
Offered by Grameen Koota
Mousom Mitra
to its Clients
Grameen Koota,
2005
Chandan Bangalore
Batsayan,
Indrajit
Kumar, Organisation Understanding
27.
Mousom “Grameen Koota”
Mitra, Naveen
Kumar
Mallik
2005
Deepak Kumar Study Of MFI From Financial Friends of WWB,
28.
Jha Management Perspectives India, Ahmedabad
2005
Product Development for Matoshree
29. Gaurav Loomba Microfinance (Designing, Rampryaribai
Testing and Launching) Sarda Dharmik
Pratishthan,
Organisation Understanding
Nashik,
30. Gaurav Loomba “Matoshree Rampryaribai
Maharashtra
Sarda Dharmik Pratishthan”
Evaluation of The Income 2005
Enhancement Program of
31. Anuj Kumar
Sehgal Foundation in Select S M Sehgal
Villages of Mewat, Haryana foundation,
Gurgaon
Anuj Kumar Organisation Understanding
32.
,Anjali Godyal “S M Sehgal Foundation”
To Study the Scope and 2005
33. Alok Modi Potential of Setting a Micro- Bhoruka
Finance Institution. Charitable Trust,
Organisation Understanding Rajasthan
34. Alok Modi
“Bhoruka Charitable Trust”
Mukul Kumar 2005
Study of Organization
35. Singh and Shahid
Structure ICICI Prudential
Ahmed Khan
life Insurance,
Mukul Kumar Organisation Understanding
Mumbai.
36. Singh, Shahid “ICICI Prudential Life
Ahmad Khan Insurance”

43
 Year of
Sr.No. Student(s) Title of the study Oragnisation
Submission
Nitin Gupta, V. S. 2005
Ravi Kumar
Tadimalla , Neeraj
Preliminary Studies for
Kumar Lal, K
37. Launching a Micro-Finance
Somanadha ,
Institution
Rohit Garg,
Abinash Community
Mahapatro Services Trust,
Abinash Salem, Tamil
Mohapatro, Nadu
Neeraj Kumar Lal,
Organisation Understanding
Nitin Gupta, V. S.
38. “Community Services Trust,
Ravi Kumar
Salem”
Tadimalla, Rohit
Garg, K.
Somanadha Babu
Bhanu Shyam 2005
An Indepth Study of
39. Nakka and
Resource Centre of
Vishwashree
MYRADA MYRADA,
Boga
Bangalore
Vishwasree Boga
Organisation Understanding
40. and Bhanu
“MYRADA”
Shyam Nakka

44
1. Project : Develop Monitoring System for Loan Repayment by Micro Enterprises
and their Performance, (2003)

Participant: Manju Mary George, (2002-2004)

Organisation: State Poverty Eradication Mission (SPEM), Kudumbashree
Reporting Officer : Mr. T. K. Jose, lAS, Executive Director
Faculty Guide : Prof. H.S. Shylendra

Abstract : Kudumbashree aims at absolute poverty eradication through micro

enterprise development by bank linkage of the poor. Repayment
Information System (RIS) is envisaged as a participatory credit system
which tracks repayment, enterprise performance, boosting confidence of
bankers and helping timely evaluation and intervention. The objective of
study were: To understand the relevance of RIS to Kudumbashree and its
alignment with the vision, to understand the major performance criteria
expected by the organisation from the RIS and to study the shortfalls and
constraints in the RIS and suggest improvements on each of the
performance areas.

The study on RIS covers 58 Urban Local Bodies, 14 districts and 75 volunteers. A
sample of bankers and Kudumbashree team has been taken. The study takes the
demand for analysis and improvements on system as existing and thus does not go
for a detailed analysis on the concept or its need. The study is more of an action
research, researcher being a facilitator/team member involving detailed interviews
with Kudumbashree functionaries for the requirements; semi-structured interviews
with the bankers, field level functionaries, group discussions with volunteers to
identify the shortfalls and their reasons. Software was developed and an interaction
cum preliminary training programme given to the volunteers to identify the short-falls
further modifications
The data for the study included discussions with primary sources like volunteers,
bankers, Kudumbashree officials and secondary data comprised of existing RIS
reports, Kudumbashree studies and other official documents.

Major performance criteria for the stakeholders were timeliness of the information, its
relevance and sufficiency. Ideal was regular monthly information consistent and
relevant with the levels, able to satisfy all queries and ensuring good quality credit.
But, there was high irregularity found in sending reports, irrelevant data was being
collected at the head office with no filtering or screening and the data was not
sufficient to serve the purpose.

The study concludes that reasons for irregularity were lack of continuity among the
RIS volunteers, improper perceived bias in remuneration, unfamiliarity with
computers, lack of compliance mechanism and unclear chain of command. Lack of
proper requirement analysis and planning for all three levels was the shortfall in
terms of relevance. Also, required information heads were absent and incomplete
forms were sent along with lot of irrelevant information. To ensure relevance of
information, a change in the system design was proposed. This was one wherein
data was verified and consolidated at each level before sending to the higher level.
Software was I which has input forms for the volunteers and a report part relevant to
each level. To ensure timeliness of information, it was suggested to have a careful
screening before selection of volunteers, a training programme for computer
familiarity, first of which was conducted immediately after the software development
and to have remuneration structure wherein there can be a fixed portion and
additional pay according to the number of Inks covered and awareness be created
among all stakeholders. To ensure sufficiency of information, heads were added to

45
check on the unfavourable lending practices of banks. A mandatory provision was
also made in the software to ensure that relevant columns are filled up. However,
some concerns as to who .should be ideally monitoring repayment, the relevance of
the 'group' concept in monitoring and the clarity of organisation about the endeavour
emerged from the study. As these issues had a design implication more rational
solutions given before, a short term and long term probable model designs are also
proposed.

2. Project: Organisation Understanding of State Poverty Eradication Mission

(SPEM), Kudumbashree (2003)

Participants: Krishna V R, Manju Mary George, Manoj Mohan Mohandas

Abstract: The objectives were to get an insight into an organisation working,

strengths and weaknesses with regard to the structure, policies and
activities in each functional area and to study the match between
theory and practice in organisational behaviour. The methodology
focus was of more than an outsider's observation the study was in a
participatory, experiential mode, with the students acting more like
team members. Primary data sources included talks with the SPEM
functionaries, its initiators, beneficiaries and other stakeholders.
Secondary sources comprised of official documents, publications,
records of NHGs and other literature.

The organisation, as it exists, brings together the experience of the government,

empathy of an NGG and efficiency of the private sector. It has a clear vision, well
defined mission statement and strategies for achieving its objectives. The major
values guiding the organisation are commitment to the cause of the poor, innovation,
quality, professionalism, cooperation and convergence. It works on a mission mode
through its programme, Kudumbashree with the mandate of eradicating absolute
poverty from Kerala in 10 years. It also acts as the State Urban Development Agency
(SUDA) for Kerala and discharges all its activities

3. Project : Micro Level Credit Requirement of Dairy Farmers(2003)

Participants: Ajith D and Bhagirath (2002-2004)

Organisation: Malabar Regional Co-operative Milk Producers’ Union Ltd.,Kozhikode
Reporting Officer: Mr. G. Selvakumar, CEO, Malabar Rural Development
Foundation
Faculty Guide: Prof. Prabal K. Sen

Abstract: In 1998-99, the Malabar Regional Co-operative Milk Producers’ Union

(MRCMPU) Ltd. had started some women-centred thrift groups in some of the areas
of its operation on an experimental basis. One of the aims of setting up these groups
is the redeployment of women trained as promoters under the Women Cattle Care
Programme initiated by the Union in the 1990s. While some of the thrift groups are
functioning well, some have become defunct. In 2000, MRCMPU Ltd. set up the
Malabar Rural Development Foundation (MRDF) with the main objective being socio-
economic development of dairy farmers. The activities related to the thrift groups are
to be carried out by MRDF.

The objectives were: To understand the need for credit of farmers, to understand the
structure and functioning of the thrift groups promoted by MRCMPU Ltd., to
determine the reasons for the failure of some of the thrift groups and to promote a
self-reliant and sustainable model of SHGs. The study was confined to the Kannur

46
district in Kerala. The study was conducted in two stages: the first stage was
exploratory in nature, wherein discussions were held with key informants such as the
women promoters, the thrift group leaders, etc. In the second stage, the members of
the thrift groups set up by MRCMPU Ltd. were surveyed based on a questionnaire
measuring the perceived importance of credit for various needs, their satisfaction
with the functioning of and benefits from the thrift groups, the perceived level of co-
operation in the groups and their opinions on certain features of ideal models of
SHGs. The members’ responses were recorded on a 5-point scale.

Prima facie, the defunct groups had failed because of alleged mismanagement of
funds by the woman promoter. It was found that the funds from all groups were being
pooled and the accounts were also aggregated and finalised by the woman promoter.
Therefore, the basic feature of SHGs – self-reliance – was not present in these thrift
groups. Moreover, the success or failure of all the groups under an APCOS area was
dependent on the performance of one person, thereby increasing the risk of failure.
Lack of monitoring of the functioning of the groups was another issue that was noted.

It is proposed that the groups be made more independent and the management of
funds and accounts be handled at the group level by elected Secretaries. A higher
level governing body composed of elected Presidents and Secretaries from all
groups in an APCOS area must be formed. The accounts of all the groups must be
verified on a regular basis by the elected Secretary of the governing body. These will
be further audited by MRDF on a regular basis. The woman promoter will be
entrusted the role of training the members and office-bearers and also verifying
accounts at the governing body. She will also provide training in dairying related
activities to the members in order to promote dairying in the region. In the future,
member based income generating activities could be introduced to augment the
income of farmers and the common funds.

4. Project : Income Generation Programmes to be Initiated by MRDF (2003)

Participant: Mathew V, Robin P. Mathew, (2002-2004)

Organization: Malabar Regional Co-operative Milk Producers’ Union Ltd.
Reporting Officer: Mr. G.Selvakumar, CEO
Faculty Guide : Prof. Prabal K.Sen

Abstract : The objective of the study is to identify possible income generating

activities that can be promoted by MRDF taking into consideration the viability and its
implementation on a pilot scale in Palakkad district and also to suggest some
possible marketing interventions. The study was conducted in Vadakarapathy
panchayat in Chittur Taluk of Palakkad district. It was confined to two (Kozhipara and
Parisakkal) of the five APCOS areas, which fell under the panchayat. Vegetables
especially tomatoes are cultivated on a large scale in this panchayat. In order to
study the potential of the panchayat we conducted an exploratory study in which we
met a number of progressive farmers and other key resource informants like
Panchayat president, presidents of various APCOS, Agricultural officer etc. For our
secondary data requirements we visited different government offices like block office,
Taluk office, panchayat office, Vegetable and Fruit Promotion Council, Keralam
(VFPCK) head office and their fruit-processing factory near Ernakulam etc. The tools
and techniques used in this study included focussed group discussions, in-depth
interviews with key resource persons.
The conclusions are that the farming community in this Panchayat is in a very
vulnerable position. As there is considerable fluctuation in the income that they
receive from their farms, they live at near subsistence levels. Minimization of risks for

47
these farmers is possible by crop diversification as opposed to specialization as seen
in the case of tomatoes. This diversification rather than concentration on a single
crop is required for generating revenues on a sustainable basis. Crop diversification
and a transition to more lucrative options like floriculture should be promoted
vigorously with training requirements being arranged for by MRDF.
It is recommended that MRDF should promote crop diversification as well as a
transition to other lucrative crops like floriculture that provides a lot of employment
avenues and value addition techniques like vermicompost. MRDF will have to
establish critical linkages with VFPCK and prominent NGOs. In the case of vegetable
marketing MRDF/ MRCMPU should play the role of a facilitator in linking those
APCOS centres, retail outlets and MILMA booths that are willing to take up the
franchisee scheme of the project with the vegetable farmers. Marketing interventions
in the case of vegetables must be carried out only after an in-depth study of not just
Vadakarapathy panchayat but also other panchayats that are also cultivating
vegetables.

5.Project: Organisational Understanding of Malabar Regional Co-operative Milk

Producers’ Union Ltd. (2003)

Participant: Ajith D., Bhagirath Iyer, Mathew V, Robin P. Mathew

Abstract : Malabar Regional Co-operative Milk Producers' Union Ltd (MRCMPU) is

the youngest of the three regional co-operative milk producers union
in the state of Kerala. It operates in the six northern districts of
Kerala viz. Kasargod, Kannur, Wayanad, Kozhikode, Malappuram
and Palakkad. The union is procuring milk from 686 Anand Pattern
Societies (APCOS) and 66 traditional milk societies in the above
areas. Milk and milk products are being sold under the brand name
'milma'. There are four dairy plants at Kasargod, Kannur, Kozhikode
and Palakkad.The objective was to understand the structure and
functioning of Malabar Regional Co-operative Milk Producers' Union
Ltd (MRCMPU). The methodology of the study included interviews
with department heads and interactions with technical officers at the
plant. Secondary data were collected and analysed from records
available at MRCMPU, Kozhikode. The scope of the study was
limited to the plant at Kozhikode where we covered all departments
viz. procurement & inputs, production, fmance, MIS, personnel and
marketing.

The organisation has tried to link the producers with the customer, which has been
brought out in its mission statement. The union procures 2.7 lakh litres per day
(LPD) of milk on an average. It has also implemented quality standards of ISO
and Hazard Analysis and Critical Control Point (HACCP) for production and
processing of milk and milk products and improvement in services. The union
also undertakes extension activities to provide need based technical inputs and
training to dairy farmers. To promote the socio-economic development of dairy
farmers, MRCMPU has set up a charitable trust, Malabar Rural Development
Foundation (MRDF). Non-dairy activities have been transferred to MRDF, as the
union wants to concentrate on its core activities. Subsequent to the formation of
a joint venture with NDDB, a new company Milma Foods Ltd. has been formed
which looks after the marketing aspects of the union. In future, MRCMPU
intends to diversify to allied activities for strengthening its financial base.

48
6. Project: SWOT Analysis of the Seafood Industry and Financial Opportunities for a
Bank. (2003)

Participant: Hitesh Jain (2002-2004)

Organisation:ICICI Bank Limited, RMAG Division
Reporting Officer: Mr. Atish M Govil
Faculty Guide: Professor Prabal K Sen

Abstract :The objectives of the study were: To study the problems faced by the
seafood industry, to undertake a SWOT Analysis of the industry and to find the
financial opportunities for a Bank in the industry. The study universe included the
seafood exporters at Cochin, Chennai, Bhimavaram, Visakhapatnam and Mumbai. It
also included backward linkages like the feed plants. For the study a state-wise list of
seafood exporters was drawn with the help of secondary data sources. The states of
Kerala, Tamilnadu, Andhra Pradesh and Maharashtra were selected for the study
and some of the major seafood exporters were met personally to discuss checklist,
which contained questions about the industry and the exporters. Also snowball
sampling was used in the sense that each exporter was asked about other viable
seafood exporters at the place of visit. The secondary sources of data were used to
draw up the list of seafood exporters. Discussions were held with the exporters and
also the related agencies to know their views about the industry.

The Indian seafood industry had faced a lot of problems in the past. However, it is on
the road to recovery. The exporters have a lot of opportunities in the near future,
but they need the support of the government, related agencies and banks for the
same. The bank has a lot of financing opportunities in the industry. The industry
needs both types of loan, short-term and long-term. The short-term credit can be
in terms of Export Packing Credit and bill discounting whereas the long-term
loan can be term loans. Though the industry offers financial opportunities for
banks, banks need to be careful at the same time. They can start lending to big
established exporters and can have some exposure to upcoming exporters. Also
the banks can exercise the options of annual financing and flexible financing.

7. Project : Profiling of Agricultural Co-operatives(2003)

Participants: Abhishek Garg, Prathibha Nair( 2002-2004)

Organization: ICICI Bank Ltd.
Reporting Officer: Mr. Ajay Desai
Faculty Guide: Professor L.K Vaswani

49
Abstract: The objectives of the study include creation of database of co-operatives;
understanding of general profile and financial service requirements
of co-operatives. The study was limited to agri and allied co-
operatives with a larger emphasis on commodity marketing and
processing co-operatives. Dairy and sugar co-operatives were de-
emphasized. As the co-operative movement is strong in Maharashtra
and Gujarat the two states were selected for the study within which
pockets where co-operative movement is strong were profiled which
include- Kolhapur, Sangli, Nasik and Jalgaon districts of
Maharashtra; Belgaum district in Karnataka; Surat, Bharuch, Navsari
and Valsad districts of Gujarat. To achieve our stated objectives we
collected details of co-operatives from apex bodies and persons
related to the sector. Next, some of the ‘good’ co-operatives in
Gujarat and Maharashtra were short-listed, based on secondary data
and inputs. Personal visits for interaction and collection of primary
data were conducted. For the collection of data a questionnaire was
prepared. Apart from it interviews and detailed discussions with staff
was carried out. In the last stage of the study, the obtained data was
analysed to understand the financial performance of co-operatives
and their need for financial products.

Co-operatives are present in large numbers in all Gujarat districts, however there are
variations in the performance of agricultural co-operatives across the various regions
and across the various agricultural commodities. Successful co-operatives were seen
to have wide diversification in the businesses undertaken. There is strong networking
among the South Gujarat co-operatives, which is absent in Maharashtra. In Gujarat
member deposits constitute the main source of funds, co-operatives invest funds in
DCCBs and sugar factories. Agricultural loans to members are usually given in kind
in South Gujarat whereas in Maharashtra reserves and external loans form the main
sources of funds and the networking among co-operatives in less. Low interest is not
the only decision making variable for accepting loans in the co-operatives studied.
Working capital loans, term loans, fund transfers, export finance, asset insurance,
financial consultancy and provision of market intelligence are some of the financial
products in demand with co-operatives in the given areas. Gujarat co-operatives, on
the whole were seen to be more self-reliant and member centric. They had low needs
for loans. Maharashtra co-operatives on the other hand were seen to be less self –
reliant, were generally seen to have more demand for loans and had less linkages
with the DCCBs.

The study also came up with recommendations based on the analysis. ICICI could
concentrate on Maharashtra co-operatives (vis-à-vis Gujarat co-operatives) for the
provision of loans. But Gujarat co-operatives in general being better performing
(financially as well as with respect to other indicators including member centrality)
should be given a preference when extending credit- particularly so when extending
credit through them to the member farmers (given their greater member centrality).
Further, ICICI Bank should modify some of its policies to provide more customer
centric service in rural areas. Also, it is difficult to sell/ mortgage rural property. So
adequate measures to cover the risk is required. Moreover, co-operatives being
entities different in their operations from companies, require different criteria for
measuring performance. A yardstick that considers the performance of the
governing, operating and patronage systems, critical linkages, microenvironment,
member stability, transparency and financial accounts is suggested. Further, co-
operatives with integration of production, marketing and lending, marketing co-
operatives and co-operatives with federal structures because of their inherent
features are recommended as possible partners for ICICI bank.

50
8. Project: Organisational Understanding -ICICI Bank Limited, RMAG Division(2003)

Participants: Abhishek Garg, Gaganpreet Kalra, Hitesh Jain, Prathibha Nair

Abstract: The objectives of the study included developing an understanding about

the organisation, its structure, operations and finance and learning about
its plans and strategies for growth. The primary sources of data
collection were observations made during our stay in the organisation
and interaction with the employees. In-depth interviews with employees
were also held. The secondary sources included perusal of Annual
Reports of ICICI Bank, circulars and website.

ICICI Bank has emerged as the second largest banker in India. It has achieved its
vision of becoming a universal bank in India by following the growth strategy
driven by mergers and acquisitions. ICICI Bank is an innovative, dynamic and
flexible organisation. The key elements of their stategy are to capitalise on new
business opportunities, leverage brand and distribution capability, proactively
adopting technology and developing human capital. It is a modern, savvy and
technology enabled financial organisation catering to almost all the financial
needs of corporate and retail customers. They believe in proactive banking and
reaching out to customers due to which they need to maintain an innovative and
flexible way of functioning which also shows in the structure of organisation,
which is continuously evolving. ICICI has five major divisions - Wholesale
Banking, Retail Banking, Corporate Centre, Project Finance & Special Assets
and International Business. Rural Micro Finance and Agri Business Group
(RMAG), newly created, is a part of the Wholesale Banking Division whose
vision is to achieve the synergy of rural banking and technology by branchless
rural banking. It has three main divisions – Cooperative banking group, Rural
Micro Banking Group and Agri Business Group (ABG). The employees in the
various groups work in teams. The RMAG has been formed to cater to the needs
of rural sector to satisfy both the regulatory and business imperative. The
Solutions Group within RMAG takes regular feedback from other divisions and
introduces products in line with the requirements of the sector and the mission of
the group. There exists proper coordination among the employees and also
among various groups. There exists free flow of information in the organisation.
The informal culture in the organisation enhances the efficiency of the
employees. The organisation takes care of all needs and comforts of its
employees in terms of working environment but religiously believes in the mantra
of performance orientation.

9. Project: Documentation of Women Self Help Group Federation-

ASARA in Indore, Madhya Pradesh (2003)

Participants: Ms. Aakanksha Gupta, Mr. Mohit Kumar Agarwal (2002-2004)

Organisation: Friends of Women’s World Banking, Ahmedabad, Gujarat
Reporting Officer: Ms. Daksha Niranjan Shah, Credit Programme Manager
Faculty Guide: Prof. Debi Prasad Mishra

Abstract: The objectives of the study were to document the process of evolution and
to assess the impact on women and also problems faced by them during this process
for both: Four clusters and ASARA federation and to analyse role-played by FWWB
in this exercise. The study is intended to be helpful to understand the process of
formation and evolution of a women self help group federation. Study results could
be used to prepare training material for conduction of any such exercise in future

51
keeping in mind the highlighted points, which needs to be considered for even better
performance.

As per the methodology used, process was studied after dividing it in four phases.
Questionnaires were made in Hindi, after having an initial round of discussion with
some of the women members, to incite details regarding SHGs (for this a sample
size of 20 SHGs per cluster was targeted) and about clusters. Semi structured
interviews and group discussions were held at cluster and federation level. Primarily
data was collected from women SHG members through interviews and
questionnaires. Secondary data was collected through reports available at FWWB
and at clusters and federation.

DFID, UK funded a five-year project to FWWB for development of a women self help
group federation though congregation of already existing SHGs and developing new
SHGs in Indore, Madhya Pradesh in 1997. Till project end in September 2002, four
clusters had evolved in four bastis of Indore and after project end a federation these
four clusters came together and formed ASARA federation in March 2003.
Membership in clusters was on rise and has crossed 2500 mark. Four clusters were
functioning well, with their committees and proper inter loaning. They had united and
were undertaking many activities independently without any external support.
Clusters and federation has evolved linkages with some external agencies as well.
Project has wide impacts as women came more confident and economically
benefited after it. Recommendations were made regarding flaws felt by women under
FWWB and also regarding factors, which needs to be addressed for better
functioning and sustainability of federation and clusters. Study also reveals present
needs and achievements of women involved.

10. Project : FWWB's Intervention in Restoring Livelihoods in Post-Quake Rural

Kutch (2003)

Participants: Vanya Sinha and Karuna Sharma(2002-2004)

Organisation: Friends of Women’s World Banking, Ahmedabad, Gujarat
Reporting Officer: Ms. Daksha Niranjan Shah, Credit Programme Manager
Faculty Guide : Prof. Smita Mishra Panda

Abstract: The objectives of the study were: To study the impact of earthquakes on
livelihoods and to study the effectiveness of FWWB's intervention in
restoring livelihoods (3) to find out the understanding of the concept of
SHGs amongst the beneficiaries. The study was conducted in all the
seven villages around Bhuj in Kutch district where FWWB had
disbursed loans. Semi-structured interviews were conducted in detail
with 40 beneficiaries out of a total of 143. This sample cut across all
three categories of beneficiaries, viz., farmers, weavers and women
engaged in embroidery work. Besides this, conversations with groups
of mandaI members also helped us in drawing insights. The primary
sources include the beneficiaries and the FWWB resource person in
Madhapar. The secondary sources include the documents and loan
statements given by FWWB.

The main findings of the study are: In the case of weavers, the economic position is
better as now all of them own cemented houses, but as before they all are still doing
wage labour. The farmers' responses, about the current economic position in
comparison to that before the quake, ranged from being same as pre-earthquake to it
being better than before. Same was the case of women engaged in embroidery work.
Women do not have any role to play in the public domain, are mostly illiterate and do

52
not have much independence in decision making at household level and both men
and women had positive orientation towards SHG concept.
Conclusions drawn from the study are: FWWB loan was highly effective in restoring
the livelihoods of farmers. Because of the loan the farmers could get their bore wells,
tanks, pipelines etc. repaired and resume normal agricultural activity. The loan was
instrumental in restoring livelihoods of weavers and women too by normalizing their
lives. Though major portion of loan given to the weavers and women was utilized for
the purpose of house construction, it did play an indirect role in restoring their
livelihoods. Status of women in seven villages is typical of Indian patriarchal society.
For the success of SHGs in these villages a lot of work will have to be done by the
intervening agency, in terms of educating the people, addressing their mindsets,
specially boosting the morale of women. Continuous support would be required for a
few years after the SHGs become functional to enable them to become independent.

The study recommendations are: A crop loan package for farmers would be of great
help. For small farmers in the village who are engaged in rain fed agriculture group
loans could be extended for digging bore wells. Repayment schedule should be
worked out in consultation with the beneficiaries and it should be flexible in case of
unforeseen circumstances. Education loans should be extended to the poorer
households. The women belonging to the poorer households of agricultural laborers
and small farmers require embroidery loans, and for this provision should be made.
Loans to weavers should be extended to enable them to become self-employed. For
this weavers should be able to attend fairs to sell their products. The loan extended
to them should be at least As. 50000 as anything less than that would not suffice. A
weavers collective for the purpose of procurement of the raw material and marketing
of the finished product through fairs would be of help.

11. Project: Understanding Organisation: Friends of Women's World Banking,

Ahmedabad (2003)

Participants: Ms. Aakanksha Gupta, Ms. Karuna Sharma, Ms. Vanya Sinha and Mr.
Mohit Kumar Agarwal.

Abstract: The objective of the study were to have a holistic understanding of the
organisation viz. structure, roles and responsibilities, culture, strategy and
compliance with vision and mission along with other related aspects. The scope of
study is limited to working of FWWB, Ahmedabad. The structure and functioning of
different departments of FWWB were studied with the help of unstructured
interviews, informal talks with department heads and other staff members. The
"Universal Business Model" Framework has been used to cover the organizational
aspects comprehensively. Data was primarily collected from the executives and the
office staff at different levels while secondary data was obtained from reports
available at FWWB office regarding its past and present activities.

FWWB was set up in 1982 as an extension of WWB in India. It is registered as a

Public Trust under the Bombay Public Trusts Act, 1950. It works with the aim of
empowering and promoting direct participation of poor and asset less women in the
economy through access to appropriate financial services through 87 partners.
FWWB has been working on its goal and has been able to extend its services to
84186 women in many states in India. Its major programmes include revolving credit
program, capacity building, special projects like Indore Financial Services Project,
Restoration of livelihoods in Kutch region after earthquake, Micro Insurance and
research and documentation. FWWB's Strategy focuses on building the capacity of
promising and committed Micro-Finance Institutions to playa leading role in providing
financial services to the poor women. The organisation supports an open culture

53
where the employees have freedom to express their views. It has well defined roles
and responsibilities where hierarchy is respected. The study concludes that FWWB is
complying with its objectives and its services have been targeted at poor women
only. Through its various programmes it has made a considerable impact on lives of
poor women viz. in Kutch, in Indore through ASARA federation, through Micro
insurance etc.

54
12. Project : Developing a Quality Assessment System for Mahila
Abhivruddhi Society, Andhra Pradesh (APMAS) (2003)

Participant: Sangeeta Srinivas (2002-2004)

Organization: APMAS
Reporting Officer: Mr.C.S.Reddy/ Mr.L.B.Prakash
Faculty Guide: Prof. Nirlesh Kothari

Abstract: Quality Assessment (QA) is a core activity of APMAS. Working towards a

common acceptance and wide use of quality as well as organizational capacity
assessment processes for Small Micro Finance Institutions (SMFIs), APMAS
has developed a Quality Assessment (QA) tool called GRADES. To further
internalize quality consciousness, APMAS has developed a self-assessment tool
for Self Help Groups (SHGs) called CRI+, based on the Critical Rating Index
(CRI) of NABARD.

The objective of the study was to streamline the activities of the Quality assessment
team and assist in automating the process. Rating services being one of key services
offered by APMAS, its accuracy assumes significance in the overall growth of
APMAS. The entire rating process is currently being done using Microsoft Excel
Worksheets with complex inter-linkages and formulae. It is producing the desired
results but there is a huge scope for automation and standardization of the entire
rating process. Methodology of the study included understanding the QA processes,
workflows, information requirements, data sources and other strategic needs. A user
manual was developed in order to facilitate a common level of understanding across
the team. My involvement was also sought in the revision of the tool in order to make
to more acceptable to the Bankers. Work was undertaken in collaboration with a
software vendor, MFTech Pvt Limited. Some of the limitations of the study were time
constraints, the frequent absence of the QA team and non-availability of standardized
forms.

The study concludes that this new system will streamline the assessment process
through the software’s security mechanisms, workflow and consolidation of data for
easier analysis purposes. The key features offered by the system would be- Security,
Efficiency, Quality, Replicability and Research The system has been recommended
keeping in view the future strategy for growth through affiliates. Also,
recommendations have been made to make a more in-depth use of the system, like,
internal performance standards based on the time taken to complete assessments,
benchmarking, consolidated case studies to enable research, etc. This phase of the
project thus delivered the system requirements, data model, the User Interface
prototype, a vision document and a user manual.

13. Project : Understanding Organisation -Andhra Pradesh Mahila Abhivruddhi

Society(2003)

Participants: Nanabala Lavanya Kumar and Sangeeta Srinivas (2002-2004)

Abstract: In Andhra Pradesh there are more than four lakh SHG groups and
Hyderabad has been hailed the 'Mecca of micro finance' in India. Organizations like
NABARD, APARD, Velugu, CASHE and WE & SE developed capacity building plans,
however, inadequate institutional capacity raised the need for a State level institution
to work on Quality Assessment and Quality Enhancement of SHG Federations. Thus
APMAS evolved with a purpose to improve the quality of Self-managed Micro
Finance Institutions (SMFIs) and to strengthen their effective access to resources.

55
Towards this purpose, APMAS undertakes assessment of SHG Federations using a
rating tool- GRADES and capacity building activities'on a fee for service basis.

The objective was to understand the structure and the functioning of APMAS with an
emphasis on the working environment and the staff involvement. The task was to
familiarize with the strategic issues in organizational understanding, which included
clarification of concepts and roles, procedures followed, systems in place and future
plans. The study covered the head office at Hyderabad and the district offices of
Adilabad, Guntur and Vijayawada. Direct observation and participation in various
workshops and field visits helped in better understanding of the activities of APMAS.
Annual reports, manuals, journals and other publications of APMAS were referred.
Opinions of experts in the field were sought and an Organizational Climate survey
was undertaken.

The major findings of the study are that APMAS has evolved into a dynamic and
growing organization, responsive to its external environment. It is strategically
changing its structure in order to serve the growing needs in the State. It places a
high level of importance on networking and sharing of knowledge. The regular
workshops and trainings undertaken ensure that it maintains its role as a torchbearer
for advocacy in the sector. It is also playing the role of a facilitator between different
wings of the AP Government working for rural development. Thus its main role is in
support services rather than implementation of policies. Now, it is diversifying into
model building and piloting in order to set standards and replicate the best practices.
The study revealed the strong need for professionals in this sector. The
organizational survey brought many critical aspects of the working environment, the
employee satisfaction, their values and the organization's contribution towards
promoting those values, gender issues and individual opinions to better the working
environment.

14. Project : SHG Federations as Financial Intermediaries (2004)

Participant: Venkata Subba Reddy G ,( 2003-2005)

Organization: Mahila Abhivruddhi Society (Andhra Pradesh)
Reporting Officer: Mr. B. Anjaneyulu
Faculty Guide: Prof. H S Shylendra

Abstract: The objectives of the study were to understand the evolution of SHG
federations and its structures. The focus was mainly on the process of
financial intermediation. The study also proposes a suitable structure
and task sharing for these federations. The scope of the study was
limited to Five Mandal Federations of both two and three-tier
structures in the state of Andhra Pradesh. The methodology of the
study included meeting with Board and Staff at Village and Mandal
federations. Informal interviews with the promoters and Bank
Managers were also held. Primary data for the study was collected
from the governing bodies, members of Mandal Samakya (MS: It is a
body of VO’s coming together), Village organizations (VO: It is a body
of groups from one or more villages, the groups are members and not
individuals), banks. Documents from the respective Federations and
Banks were also taken. Secondary data was accessed from the
APMAS resource center, Internet and other Research papers.

Self Help Group federations are primarily promoted as an institution to strengthen the
SHG movement. This being the premise some of the findings reveal that they are
rarely serving the purpose. Four out of five federations reveal that the members had

56
no say in the formation of these federations. Similar is with the case of lending loans.
The promoters decide the criteria and process of lending’s and repayments.
Moreover there is no focus on activities at each level. The activities are pushed by
the promoters. As most of the members are illiterates, they rely heavily on facilitators.
They have emerged as power centers in some parts and are easy pray to politics.
The By-Law compliance in the election of Board is rarely taken care of by these
federations. In terms of financial intermediation the data for twenty nine VO’s
revealed that twenty one were unregistered and yet handling huge funds. There is
sluggishness in the repayment rates of Community Investment Funds (CIF). The
political rumors and other external factors impede the repayment process of these
grant loans. The loans from CIF were given mostly to purchase cattle or sheep. The
members find it difficult in making them a productive venture.

The study reveals that there is a need to help facilitators gain conceptual clarity about
these federations. Similar is the case with the members. The dependency of
members on facilitators should be reduced. Secondly the size of the CIF loans can
be restricted rather than doling out huge amounts which the members find it difficult
to manage and thereby default in repaying these grants. The VO which is closer to
the group can be effective in financial intermediation. The VO’s should be legally
registered bodies, to obtain bank linkages, and thereby reduce the transaction costs
to both members and Banks. The VO’s can educate members to take up the tasks of
financial intermediation. Facilitators should be given clear job profiles. The Mandal
Samakya (MS) which is a group of VO’s coming together can function, utilizing the
economies of scales in the region. The MS can facilitate to provide members inputs
and find markets for their outputs. The MS can provide Value added services like
insurance schemes which can make life simple for the members. It can also take up
social intermediation activates like child labor, dowry issues, AIDS awareness etal.
Finally it can facilitate the Village Organizations with capacity building programmes to
help these institutions become truly member owned and member managed.

15. Project: Understanding Organization - Andhra Pradesh Mahila Abhivruddhi

Society (2004)

Participants: Kiran Kumar P , Srinadh Anne , Subba Reddy GV

Abstract: APMAS was established with a purpose of building the capacities of the
SHGs/Federations, and do informed advocacy to the stakeholders, when there was
proposal to set up Andhra Pradesh Women’s Fund (APWF), on the lines of FWWB to
provide credit to these growing numbers of SHGs. The necessity of having such an
APEX body to provide technical support and play facilitation roles was reconfirmed
by the feasibility study conducted by Basix along with CARE and Vikasa Darshini.
DFID came forward to fund the institute through CARE’s CASHE project. It works on
fee for service provided to the clients i.e. the promoters of SHGs. Under the capacity
building activities the organization does the assessment of the SHG federations and
provides guidance to the promoters and support staff through various training
programmes to enable these federations access more credit from financial
institutions.

The objectives of the study were to understand the organisational environment both
internal and external, organisational structure, activities, functioning, and its
relationship with stake holders and to understand the changes taking place there in
with changing external environment and internal environment. The study includes the
four regional offices and a few stakeholders like clients, donors and direct
beneficiaries. The methodology includes direct observation, focussed group
discussions with employees of APMAS, interviews with clients, Board of Directors,

57
Donors, Literature survey of annual reports, progress reports, manuals and business
development plans. The methodology also includes an organisational climate survey
conducted on various aspects of the organisation and participation in meetings of
core team and organisational retreat.

Ambiguity has always been a reality for APMAS with changing external environment.
The organisation has been very dynamic in changing its focus as per the
requirements and is still evolving. The organisation has become sustainable as an
institution but is still dependent on external funds and has set targets to achieve
financial sustainability. It has been working at macro, meso levels and it was
successful in overcoming initial stumbling blocs such as lack of credibility by fast
adapting to the growing requirements of the clients. It increased its client base
phenomenally with their work. The policy advocacy activity it has taken up is very
important as APMAS needs to balance this against the activity of providing services
on fee basis. It has developed various products for assessment such as CRI plus,
GRADES and various modules for trainings. It was successful in segmenting the
clients to provide the services. Added to the increased client base it also succeeded
in increasing the source of funds as many donors are coming forward to partner with
it and contribute to the sector. It is nearing the completion of model building activities
it took up to reveal what a best federation or SHG looks like. With increased vigour
and financial support from donors it is foraying into livelihoods. As a social
responsibility it took up the convergence of various promoters to work together. The
organizational climate survey revealed many facts where the organization needs to
focus. The findings necessitates APMAS to focus on issues related to staff such as
formal induction programme, better compensation management, promotion policies,
articulated performance appraisal system, grievance redressal mechanisms and
training needs assessment procedures.

16. Project : Product Design for Micro Finance (2004)

Participants: Balakrishnan M and Suvojit Chattopadhyay, (2003-2005)

Organisation: South Indian Federation of Fishermen Societies
Reporting Officer: Mr. Ephrem, Senior Executive, Micro Finance Dept.
Faculty Guide : Prof. Shiladitya Roy

Abstract: The objectives of the study included identifying the needs for a health
insurance and housing loan product for the fisher folk community and
suggesting the role of SIFFS in establishing linkages between its
members and formal channels of credit. Study of the existing
household savings scheme in the Malabar region was also a part of
the project. The demand assessment study was limited to the region
of Anjengo in the southern coast of Kerala.

The methodology, the traditional quantitative approaches (typically focusing on

increasing income alone) overlook the importance of micro finance services’ role in
diversifying sources of income, smoothing income and expenditure fluctuations,
protecting and developing important household assets (physical as well as human),
and in the development of key social contacts and skills. So a series of tools like
Focus Group Discussions (FGD) and Participatory Rapid Appraisal (PRA) have been
used which helped us in examining the complexity of fishermen community’s
financial, economic and social environment. Willingness to pay survey and
seasonality surveys were also done.

The study revealed the extent and nature of health expenditure among the fisher folk
community and also the seasonality aspect of it. The high indebtedness and the lack

58
of access to quality treatment for fisher folk was revealed in the study. A micro-
insurance product considering the limitations of SIFFS was suggested to address this
pressing issue. The urgent need for renovation and expansion of houses and the lack
of finances for it has led the fisher folk community to the hands of local money
lenders who charge exorbitant interest rates. The absence of a title deed made them
ineligible for loans from commercial banks. We could thus find out the need for a
Micro Finance initiative for housing loans and the role of SIFFS in it. The study of the
savings scheme in the Malabar region showed how a convenient and accessible
delivery channel can encourage savings in a region. But the lack of proper utilisation
of the savings deposits at the societal level and the lack of proper checks and
mechanisms in the system was a hindrance to its scaling up. A modified system
which would help an already successful savings scheme to scale-up and encourage
greater savings culture in the region was sought to be developed as a part of the
project.

17. Project: Understanding Organisation - South Indian Federation of Fishermen

Societies, Trivandrum (2004)

Participants : Balakrishnan M, James Abraham, Jyoti Mishra, Rajesh R, Rajpreet

Kaur, Suvojit Chattopadhyay

Abstract : South Indian Federation of Fishermen Societies (SIFFS) is an apex level

federation of village level and district level fishermen societies, registered under the
'Travancore Cochin Literary, Scientific and Charitable Societies Act XII' of 1955. It
operates in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and
Pondichery. The Federation is involved in providing vital services like input supply,
marketing and credit to fisher folk. Over time, it has also played an important role in
influencing government policies in the fisheries sector. The Objective was to gain
insights into SIFFS as an organization, understanding its structure, role and
functioning in its chosen area of operation. The study also focused on SIFFS as a
part of the fish workers' movement in South India, especially in the State of Kerala.
The Methodology of the study included semi-structured interviews with department
heads and informal interactions with field officers. Secondary data were collected and
analysed from records at SIFFS and Centre for Development Studies, Trivandrum.
The Scope of the study was limited to all departments within SIFFS and to the extent
of examining its relationship with the member organizations within the federated
structure.
Since its inception in 1980, SIFFS has undergone several internal and external
changes. Having started off as an apex level body established by the fishermen
societies in the Trivandrum District, it converted itself into the typical three tier
federated structure by establishing the district level federations. Following this, the
major activity tha1 SlFFS pursued was in Research & Development and society
expansion, emerging almost as a techno economic body. Post liberalization, SIFFS
also became the exclusive dealer for imported Suzuki out board motors, which turned
to be the vital income source. The organization has been continuous) engaging the
government in various activities and enjoys the favour of all national) recognized
institutes involved in research on fisheries. In the last twenty years, SIFFS ha! been
able to meet challenges posed before it. The opening up of the micro credit sector in
the country has come as a shot in the arm for SIFFS. The changing scenario and
emerging needs have led to an unplanned expansion of SIFFS resulting in internal
diversification into several departments. The departments broadly fal into the
commercial activities like Boatyard, Out Board Motors, Post harvest and marketing,
as well as development activities like Society expansion, Micro finance, R& D an
Alternative Employment. Based on the success of the existing and newer
departments of the organisation is exploring the possibilities of splitting into a Multi

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state cooperative involve mainly in business and an NGO involved in all the research
and extension activities. There are also plans of letting the credit and the micro
finance operations spin off as a separate organization.

18. Project : Evaluation of Self Employment Generation Programmes (2004)

Participants: Nitin Srivastava and Prakash Kumar, (2003-2005)

Organisation : Social Justice and Empowerment Department
Reporting Officer : Shri A S Sutaria
Faculty Guide : Prof. Prabal Kumar Sen

Abstract : The study was done with an objective to evaluate the self employment
generation programmes being carried out by the five corporations on the lines of
financial adequacy through checking the loan sufficiency, conformity with purpose,
leakages if any, timeliness in disbursement and the efficiency of the recovery
mechanism etc. Besides this the study also focussed upon the efficacy of monitoring
and evaluation of the corporations. The study also tried to bring to fore the impacts of
the programme on the health, preference for education, gender sensitivity and also
on the standard of living and awareness of the beneficiaries concerned. Based on
these, the study attempts to suggest suitable measures to bring about greater
efficiency in the programmes of the corporations under study.

For the conduct of the study three districts that were Anand, Mehsana and Rajkot
were selected. The activities in these districts were then divided into three classes
that were Primary, Secondary and Tertiary. The aggregate sample size was kept at
180 leaving sixty for a city further down to thirty each for urban and rural centres. The
data requirements were for the following heads, the application process, post
application and post sanction development, monitoring and evaluation and the impact
of the programmes socially as well as economically. The research also focussed on
getting the beneficiary perspective as well as perspective of employees of
implementing agencies. The sources from where the data were collected were the
beneficiary and his/her family, the project officers and staff at state and district levels.
The approaches used were group interview, unstructured interview with the
beneficiary family etc. Besides this informal talks and key informants were other
sources. The exploratory research was done through the administration of a
structured questionnaire. Two cases studies were also prepared for the research
purposes. Other than these interviews were done on experts and people who have
an experience of working in the field. A documentary on Safai Kamdars of Anand
was prepared to highlight the impacts of the programme.

Significant discrepancies were observed in the selection of the beneficiaries, it was

seen that many of the beneficiaries were actually maintaining assets which they
would not be able to with the income they claimed for getting the assistance of the
corporations. It was also found out that the standard of living of the beneficiaries had
not improved considerably. Its impact on the gender was minimal. Even though the
income in some cases had comparatively increased and in many cases perceptible
changes were noticed in the preference for education but these not without changes
in social norms and accessibility to available infrastructure yet it was found that the
preference for education among the beneficiary classes differed. The programmes
are marred with high delays in the release of funds and even higher rates of default
in recovery across corporations and various programmes. It was found that this was
a fault not only at the corporation level but also there were drawbacks at the policy

60
level. Furthermore, the corporations have staff shortage which results in improper
monitoring as well as implementation of the programmes.

As part of suggestions and recommendations of the study it was proposed that the
SJ&ED prepare a BPL database for all the district and talukas with details about the
prospective beneficiaries. It was also recommended that the information pertaining to
loans sanctioned under direct finance schemes be provided to field offices. Besides
this it was recommended that the information related to new schemes being
proposed to the prospective beneficiaries be provided not only through local dailies
as it is being done now but also through road side hoardings, and at Gram
Panchayat offices. It is also proposed that some penal actions be taken against
beneficiaries that claimed lesser income.

19. Project: Understanding Organisation: Social Justice and Empowerment

Department; Government of Gujarat (2004)

Participants: Sudha Kant, Nitin Srivastava, Prakash Kumar, Rajneesh Pankaj

Abstract : Social Justice and Empowerment Department (SJ&ED); Government of

Gujarat primarily focuses on socio economic welfare measure for upliftment of the
backward sections of society. The department implements several developmental
and welfare schemes for the various categories of people that include Scheduled
Castes (S.C.), Nomadic Tribes (N.T.), Denotified Tribes (D.N.T.), Socially and
Economically Backward Classes (S.E.B.C.), Economically Backward Classes
(E.B.C.) and Minorities. About more than 150 schemes are being implemented by
this department under programmes that cater to education, economic upliftment,
health and housing, other schemes for the intended classes. The objective of the
study was to understand the structure and functioning of SJ&ED and the study was
mainly confined to the district of Gandhinagar where the SJ&ED is headquartered.
Besides this some insights were developed through observations and survey in the
district where the OAC components were undertaken. The methodology adopted in
the study was interviews, both structured and unstructured, besides this the study
relied upon literature review of the reports and publications of the organisation, and
observation of the day to day activities of the organisation.

The OTS segment with SJ&ED was quite an enriching experience. We got to know
how a typical Government body that is involved in developmental efforts for the poor
classes works. The study was an excellent opportunity to know the significance of the
various departments that are in the set up, how coordination on different issues is
brought about, and the role that is played by an employee in the functioning of the
department and how this can bring about a change in the current status of the
initiatives taken. The study further helped us understand the subtle nuances of the
organisation that deal with the information flow in the department, and how it affects
the fate of the projects undertaken and the decisions pertaining to future courses of
action to be taken. The study further helped us understand how external factors like,
the environment in which the department is working right now, the political
influences, the economic factors, and legal and other influences that affect the
SJ&ED. We also observed the necessity of having a conducive and healthy
environment to keep employees motivated towards their work.

20. Project : Impact Assessment of Income Enhancement Activities (2004)

Participant: Abhishek Anand, (2003-2005)

Organization: S. M. Sehgal Foundation, Gurgaon.

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Reporting Officer: Shri Rajesh Kumar Sinha, Program Leader (Income
Enhancement)
Faculty Guide: Prof. G. Krishnamurthi

Abstract : The objectives of the study was to assess the impact of income
enhancement activities being carried out by the Foundation in the four villages and to
suggest strategies to be adopted in future to achieve the organisation's mission. The
study covered the four villages namely Agon, Ghaghas, Rangala Rajpur and Goela
where the foundation. is directly promoting income enhancement program, Firozpur
Zhirka where farmers themselves are running such activities and two villages namely
Daula and Abhaypur where a partner organisation named Arravali Vikas Sangathan
is implementing the program. After developing understanding of the program,
parameters were selected for impact assessment of the program, information was
gathered from the villages and analysed. After mid course corrections and reviews,
recommendations were made. Group discussions and semi-structured interviews
were conducted with the participants and non participants of the program. Secondary
information was obtained from documents available at the Head office, Gurgaon, as
well as Field office, Nagina, of Sehgal Foundation.

S M Sehgal Foundation is a small and young NGO that is still growing. This
organisation is actually a sister concern of Sehgal Family Foundation, USA. The
main objective of starting this Foundation in India was to fund development activities
in India. However, after funding different organisations (NGOs) for two initial years
and not getting the desired outcome, the Foundation decided to plan and implement
development project on its own and to develop some villages as model villages.
Foundation is following an integrated approach where different programmes have
overlapping objectives and implementation stages. There are four major programmes
being run by the foundation in four villages of Gurgaon district. These programs are
Income enhancement, water management, family life education and rural health.
However, only 30Per Cent of the households in the four villages have been covered
under the income enhancement program till now. Of these 30Per cent people also,
not all of them have benefited to the desired extent and also the reach of the program
shows wide variations across the four villages in terms of percentage of households
in a particular village getting covered. More community based organizations need to
be formed and strengthened and be trained to bear the responsibility of implementing
such development projects. In order to ensure better price for farmer's produce the
present arrangements of market linkage need to be strengthened, new market be
explored and stress should be on crop diversification.

21. Project: Understanding Organisation: SM Sehgal Foundation, Gurgaon, Haryana

(2004)

Participant: Abhishek Anand

Abstract: S M Sehgal Foundation is a small and young NGO that is still growing.
This organisation is actually a sister concern of Sehgal Family Foundation, USA. The
main objective of starting this Foundation in India was and is to fund development
activities in India. However, after funding different organisations (NGOs) for two initial
years and not getting the desired outcome, the Foundation decided to plan and
implement development project on its own and to develop some villages as model
villages. There are four major programmes being run by the foundation in four
villages of Gurgaon district. These programs are Income enhancement, water
management, family life education and rural health.

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The objectives were to assess the impact of income enhancement activities being
carried out by the Foundation in the four villages and to suggest strategies to be
adopted in future to achieve the organisation’s mission. The study covered the four
villages namely Agon, Ghaghas, Rangala Rajpur and Goela where the foundation is
directly promoting income enhancement program, Firozpur Zhirka where farmers
themselves are running such activities and two villages namely Daula and Abhaypur
where a partner organisation named Arravali Vikas Sangathan is implementing the
program. After developing understanding of the program, parameters were selected
for impact assessment of the program, information was gathered from the villages
and analysed. After mid course corrections and reviews, recommendations were
made. Group discussions and semi-structured interviews were conducted with the
participants and non participants of the program. Secondary information was
obtained from documents available at the Head office, Gurgaon, as well as Field
office, Nagina, of Sehgal Foundation.

Foundation is following an integrated approach where different programmes

overlapping in objectives and implementation stages. However, only 30Per cent of
the households in the four villages have been covered under the income
enhancement program. Of these 30 Per cent people also, not all of them have
benefited to the desired extent and also the reach of the program shows wide
variations across the four villages in terms of percentage of households in a
particular village getting covered. More community based organizations need to be
formed and strengthened and be trained to bear the responsibility of implementing
such development projects. In order to ensure better price for farmer’s produce the
present arrangements of market linkage need to be strengthened, new market be
explored and stress should be on crop diversification.

22. Project :Tools and Parameters to Identify Star Borrowers (2004)

Participants: Ankur Shandilya and Joginder Ralhan, (2003-2005)

Organisation: Grameen Koota
Reporting Officer: Mr. Krishna V. R., Operations Manager (Trainee)
Faculty Guide: Prof. Prabal K. Sen

Abstract : Grameen Koota was visualized in 1997, by the trustees of T.

Muniswamappa Trust to alleviate the poor from poverty in the surrounding villages of
Avalahalli. This initiative was inspired by a book “Give us Credit” by Alex Counts.
Grameen Koota started operations from 30th May 1999, as a Grameen Bank
Replication Program, with the help of seed capital funding from Grameen Trust. It
provides savings, loans, insurance and credit plus services to the poorest women in
rural and urban areas, without collateral, using peer pressure and peer support.

The objective of this project was to undertake a study into the functioning of
Grameen Koota, in terms of the impact assessment of the products and services
offered to its members and to design tools and parameters to identify star borrowers.
The study was conducted in different stages. We started with the interaction at the
head office level and followed it up by visits to the branches. After getting a thorough
knowledge about the operations of the organisation we designed the preliminary
form. Then we did the pilot testing of the form. Based on the inputs from the pilot test
and the chief operating officer, we reframed the form as per the ground conditions.
Final form is based on a scale of 100 where each answer from the correspondent will
give her some marks based on the weightage given to that parameter. In identifying
Star Borrowers, the study proposed the following two checklists. Checklist A – which
enables initial screening of the members based on guidelines set by Grameen Koota
in order to meet the minimum requirements and checklist B – this would involve in-

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depth interviews of the borrowers, wherein GK like to ascertain her financial and
social status based on certain parameters, which were designed in the field, based
on the member’s position in the family and the society. Based on the pilot testing
and the discussion with the field staff, we came to the empirical cut-off score of forty-
five. A member will obtain the score in the form B in different aspects comprising
increase in income, saving at the household level, increase in the assets (including
social assets), increase in the social status and standard of living which would be
marked by the Kendra Manager. A summation will be done and the person will be
declared as star borrower if she is scoring more than forty-five marks.

During our field test and Kendra visits, we came to some of our recommendation.
There is need for a better MIS system. Specifically there should be attendance
record and information about whether the member has taken absence without
intimating her fellow group members in the system. Impact assessment of the
member should be done on an annual basis that is member’s performance must be
judged separately year after year. During our field test we came to the conclusion
that if we are aiming at identification of star borrowers, then Kendra manager needs
training for correct assessment because this is totally a new concept for the Kendra
manager.

23. Project :Develop a Procedure for Appraising Staff Performance (2004)

Participants: Arup Anand and Madhu V., (2003-2005)

Organisation: Grameen Koota, Bangalore.
Reporting Officer: Mr. Krishna V. R., Operations Manager (Trainee), Grameen
Koota
Faculty Guide: Prof. Madhavi Mehta.

Abstract : In the year 1995, Smt. Sharadamma established a public charitable

institution by the name, T. Muniswamappa Trust in memory of her father; she wanted
the Trust to serve people in and around her ancestral village named Avalahalli
located in southern part of Bangalore. Grameen Koota was one of the three welfare
activities taken up by the trustees of T. Muniswamappa Trust to alleviate poverty in
and around the surrounding villages of Avalahalli. Grameen Koota started operations
from 30th May 1999, as a Grameen Bank Replication Program, with the help of seed
capital funding from Grameen Trust. It provides savings, loans, insurance and credit
plus activities to the poorest women in rural and urban areas, without collateral, using
peer pressure and peer support. The objectives of the study were to look into the
functioning of the head office and field staff of Grameen Koota, to understand the
various aspects of their job, to design a system for appraising their performance as
per the mission and vision of Grameen Koota.

Grameen Koota is in its expansion phase and plans to reach 10 Per cent of
Karnataka’s poor by 2008. With this vision in mind, it is recruiting field staff to
increase its operations in all parts of Karnataka. To recruit, promote and transfer its
staff, it needed to measure the performance of its field staff. Hence the need to
design the performance appraisal system for field staff of Grameen Koota. For the
head office staff, it already had an appraisal system, but the same was not adequate
to appraise the staff in an unbiased manner. It was limited in its scope, and not all
parameters were covered. The organisation felt to revise its existing system wherein
it would retain the 360º appraisal method yet make it more unbiased. Some more
parameters were needed to be incorporated. Hence, two performance appraisal
systems were designed, one for the field staff and the other for the head office. The
study was conducted in two stages: the first stage was exploratory in nature, wherein

64
discussions were held with the Chief Executive Officer, the Chief Operating Officer
and the managerial staff in the head office to look into their perspectives about the
operations of the staff. In the second stage, eight branch offices were visited to
understand the functioning of the Branch and Kendra Managers, and to get their
perspective about their superiors and members. A 360°-performance appraisal
system was then designed based on identified parameters which were in tune with
the organisation’s mission and vision wherein responses from immediate seniors,
juniors, office records and the employee himself/herself were to be taken.

The 360° performance appraisal system was designed wherein the employee was to
be appraised by his/her immediate senior, junior and the staff himself/herself. Also,
information was to be collected from the branch office records to make the system
more realistic. Targets were to be set at the beginning of the year, and the
performance was to be evaluated at the year end based on the extent to which these
targets were achieved. Some other parameters on which they were to be appraised
were their skills, their knowledge and their behaviour in the organisation. The
weightage apportioned to parameters varied so as to give more importance to
senior’s appraisal. For some parameters, all the three parties were asked to rate the
appraisee, so as to get an unbiased score. The more the number of members
formed, the more are the financial returns for the organisation, and this was therefore
given the maximum weightage while appraising the field staff. For the Kendra
Managers, the beneficiaries were also made appraisers, as they are major
stakeholders in Grameen Koota.

24.Project: Understanding Organisation - Grameen Koota (2004)

Participants: Ankur Shandilya, Arup Anand, Madhu V, Joginder Ralhan

Abstract : Grameen Koota was visualised in 1997, based on a book “Give us Credit”
by Alex Counts, by the trustees of T. Muniswamappa Trust to
alleviate poverty in the surrounding villages of Avalahalli. It started its
operations on 30th May 1999, as a Grameen Bank Replication
Program, with the help of seed capital funding from Grameen Trust.
It provides savings, loans, insurance and credit plus facilities to the
poorest women in rural and urban areas, without collateral, using
peer pressure and peer support. As of June 30, 2004, Grameen
Koota’s outreach has grown to 12,092 poor women members, to
whom it has issued 15,359 Income Generating loans to date,
totalling Rs 78,143,320 with Rs 23,452,432 in outstanding loans. The
current areas of operation in the state of Karnataka include: the
taluks of Bangalore South, Channapatna, Ramnagar and
Kanakapura of Bangalore Rural District; the taluks of Halagur,
Maddur, Nagamangala, and Malavalli of Mandya District; and the
taluks of Gubbi, Tumkur, Turuvekere, Tiptur, and
Chikkanayakanahalli in Tumkur District.

The objective was to understand the functioning of Grameen Koota as a Micro

Finance Institution. The study was conducted in two stages; the first stage was
exploratory in nature, wherein discussions were held with the CEO, the COO and the
Managerial staff in the head office. In the second stage, eight branch offices were
visited and informal interactions were held with around forty field staff to have an
understanding of the field operations of Grameen Koota. The study covered the field
operations of different branches of Grameen Koota and also an analysis of some
Micro Finance Institutions like SKS Finance, BASIX and APMAS in Hyderabad and
Sanghamitra in Bangalore. Group discussions and semi-structured interviews were

65
conducted with the head office staff and also the field staff. Also, a lot of secondary
sources of data like the Internet and the books were also referred to understand the
operations and prepare this report.

Grameen Koota, in its five years of operation, has reached up to twelve thousand
people and provided them with credit, savings and insurance facilities. This has been
made possible mainly because there was a demand of credit in this region and that it
had committed and efficient staff to carry out its operations. It is growing at a fast rate
and needs to recruit more employees as well as retain the old ones, and for that it
needs proper HR policies to motivate its staff. Also, the existing MIS which Grameen
Koota has borrowed from Grameen Bank Bangladesh needs to be improved upon
and customized as per its requirement so that it can help the branch offices store
relevant information and that can be easily retrieved whenever needed. This will help
the organization provide more loan products to specific borrowers. The decision
making in the organization is heavily centralized which results in loss of time and may
hinder its expansion plans in future. Lack of infrastructure for data flow from the
branch office to the head office is another constraint which leads to slow decision
making. There is a strong possibility of other MFIs from neighbouring states
competing with Grameen Koota and the organization needs to strategize properly in
terms of its policies and products to face this competition.

25. Project : Analysing the Dropouts of Microfinance Programme (2005)

Participant: Indrajit Kumar and Chandan Batsayan (2004-2006)

Organisation: Grameen Koota
Reporting Officer: Mr. Suresh K.K.
Faculty Guide: Prof S.K.Mitra

Abstract: The objective was to improve the understanding of the levels and
structures of client dropout in GK and the reasons for exit. A clear understanding
should help facilitate efforts to address this problem. Specifically this study seeks: To
understand the nature and context of drop out, to identify the reasons behind the
dropouts, to analyze the Socio-Economic characteristics of dropouts, to look at the
problem critically in terms of its spread and threats and to suggest viable measures
which will help GK to check the dropout problem

Over the last six years of operation Grameen Koota has been observing the client
exit from its Micro Credit programme. The dropout trend has remained positive in all
the years of its operation except the year 2003. The client exit has caused much cost
to be borne out by the organization. It not only reduces the client base but has the
potential to affect the sustainability of the organization as well. The reason for drop
outs may vary from personnel to organizational part to Socio-Environmental
conditions. But getting the right picture was the pillar stone of entire study.

In the study, we largely used qualitative research methods, in particular Interviews

with the dropout members, Focus Group Discussions with the present members and
Interviews with the staffs. The Methodology adopted relied heavily on intensive field
investigations and direct observations. The attempt was to find out the exact reasons
behind and possible solution for the dropouts. We tried to incorporate profile of the
members and some other details in the questionnaire to get the true picture of
dropouts. The work includes: Study of secondary sources of. GK related to our study,
interviews and detailed discussion with 90 dropout members at six different branches
of GK, and focused group discussions and interviews with the present members. The
members here were taken from different groups both age-wise (In GK) and centre-
wise. Interactions were held with GK staffs of different hierarchy, discussions with GK

66
staffs (Both in head-office and branch office.) and interviews with others like
husbands and other family members of both dropped out and present clients.

The limitations faced in the study due to inadequate database available with
Grameen Koota about the dropouts. We faced difficulty in locating the migrated
dropout members because these people were away from their respective places.

The study found that dropout was found more during the initial two cycles. No definite
seasonal pattern of dropout was found. The reasons why drop-outs occur vary;
however, the main ones identified include repayment problem, overlapping, Health
problems, time and schedule of the meetings, group conflicts and responsibility
sharing. Weekly repayment has been widely acknowledged by the members but the
failure to take into account the cash flows has caused the discontent Majority of the
dropout members view the first and second loan amount bit small. They are of the
opinion that to begin a business or micro enterprise they need more credit than what
they get from GK.

The study recommendations are: Proper selection process of members at the very
beginning level, product diversification (Insurance etc), linkages with micro-
enterprises promoting agencies, big size Loan, sound database management and
targeting the controllable problems like meeting time, repayment schedule etc.

26. Project : Analysing Costing of Products and Services of Grameen Koota (2005)

Participants: Naveen Kumar Mallik and Mousom Mitra (2004-2006)

Organisation: Grameen Koota, Bangalore.
Reporting Officer: Mr. Suresh K. K, Chief Operating Officer, Grameen Koota
Faculty Guide: Dr. H.S. Shylendra

Abstract : The objective of this project was to undertake a study into the functioning
of Grameen Koota, in terms of analysing the costing of products and
services offered by Grameen Koota to its clients and also understand
the financial implication of running a micro finance programme. As the
objective of the exercise is tracing the cost of the organisation back to
the products, costs are allocated to products by working down the
income and expenditure account line-by-line, deciding on what basis
each line or allocation unit should be assigned. The allocation bases
are quantified and used to allocate costs to different products. Next a
notional charge or transfer price is levied on loans and applied to
savings products, reflecting the fact that capital for lending is
mobilised from savings. The main limitations of the study are: The
method relies heavily on subjective input, that simplistically allocates
costs and fails to capture the essence of the processes and activities
and volume-related allocation bases fail to account for product
diversity and over burden “large” products.

The final costing of the products and services revealed the following results: All
products are straddled with heavy shares of sustaining costs, income generating loan
(IGL) is the only product that is making a positive financial contribution, two loans
products (supplementary and emergency) are small in number and amount, group
fund loan does not earn any interest and process is too complicated, savings are not
contributing financially and administratively cumbersome and voluntary savings is not
voluminous which is reflected by portfolio volume of just eleven percent.

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The recommendations of the study are: As the current strategy of Grameen Koota is
to expand, it needs to maintain the overheads especially at the head office at the
current levels. The incentive package to the employees should be reviewed and if
necessary portfolio quality and target oriented incentive package be incorporated.
The role of savings needs to be looked into and if critical, redesigning and
incorporating at least cost recovery measures like service charge and nominal
interest on Group Fund Loan should be put in place. Review the impact of the cost
and operational efficiency measures by strengthening the MIS at the Transaction
Reporting System level to facilitate the Management Reporting System and the
costing activity can be used as steeping stone for graduating towards activity based
costing as the organization had never conducted any such studied prior to this one.

27. Project : Understanding Organisation: Grameen Koota (2005)

Participants: Chandan Batsayan, Indrajit Kumar, Mousom Mitra, Naveen Kumar

Mallik

Abstract : Grameen Koota is one of the oldest micro finance institutions in the
Karnataka. It started its operation in May 1999 and now it operates in five district of
Karnataka viz. Banglore rural, Tumkur, Chitradurga, Hasan, and Mandya. It provides
its products and services to more than 23000 people of rural Karnataka with the help
of 118 field and head office staff. The objective was to understand the structure and
functioning of Grameen KootaThe methodology of the study included interviews with
department heads and interactions with field officers at Head Office and Branch of
GK. Secondary data were collected and analysed from records available at Head
Office and Branch. The scope of the study was limited to the Head Office and some
of the Branch which was covered during our field visit.
The organisation provided us with the opportunity to study not only its operations at
the head office level, but also with field level exposure. It helped us in understanding
the processes and activities being undertaken by the organisation. This gave us the
broader understandings of micro finance operations as a whole. It also enabled us to
understand the linkages that the organisation has with the external and internal
environment. The HR exercises conducted within the organisation helped us in
understanding the role and responsibility of the job that is expected out of an
individual and as a team.

28. Project : Study of Micro-Finance Institution from Financial Management

Perspective (2005)

Participant: Deepak Kumar Jha (2004-2006)

Organisation: Friends of Women World Banking, Ahamdabad
Reporting Officer: Daksha N. Shah, Head, Credit department
Faculty Guide: Prof. Prabal Kumar Sen

Abstract : The objectives of the study were to understand the different financial
practices, reasons behind and the implications of various financial practices. One of
the objectives was to find if money is laying idle somewhere. The scope of the study
was confined to two of the ID partners of FWWB, namely BIRDS and SMSS situated
in Andhra Pradesh. . The organisations to be studied were chosen by the FWWB. I
visited both the organisations, talked with the CEOs, the Finance Manager and other

68
staff members. I studied their way of doing the business by visiting the field and then
went through different ledgers and accounts.

It was found that both the organisation is over dependent on FWWB for their fund.
( BIRDS 73percent and SMSS 81percent), determination of interest rate without
keeping into consideration the effective rate of interest., poor liquidity management
which costs them very high ( Rs. 91832 to SMSS, Rs.125589 to BIRDSMF) for half
the year. it also includes different aspects of budget preparation and some local need
based product like one meeting the funeral expenses of the members and their
spouse.

Mainly suggestions are made to reduce the liquidity management costs. The major
suggestions are to make the loan instalments smaller in amount, available at short
notice and more in numbers. The repayments by the MFIs to the organisations
should be made of smaller period, weekly if possible instead of quarterly. The budget
preparation should be done with more precision and monthly instead of yearly. The
loan amount to be disbursed should be based on this monthly budget. The
organisations should get into the strategic relationship with other funding agencies for
getting the fund and if possible for short notice funds.

29. Project : Product Development for Microfinance (Designing, Testing and

Launching) (2005)

Participant : Gaurav Loomba, (2004-2006)

Organization : Matoshree Rampyaribai Trust, Nashik.
Reporting officer : Mr. H.L. Shingneh (AGM, Human Resource Department)
Faculty Guide : Prof. Prabal Kumar Sen

Abstract : The objectives of the study were: Gathering the institutional resources
and designing testing and launching the product, undertaking the
preliminary market research to segment the market and solicit focused
feedback from target customers, designing a product prototype, to be
used in a pilot test, conducting a pilot test, to refine the prototype and
determine what new products needs to be launched and developing a
marketing strategy and internal systems to successfully launch the new
product and manage its on going refinement. The study was carried out
in the local slum areas of Nashik covering almost eight new areas where
the product has either not been introduced or is in preliminary stage. The
primary sources involved having sample survey of 1000 households. One
to one interviews, analyzing case studies, and discussing with slum
people about there needs and requirements. Secondary Sources:
company documents and records about the ongoing activities and
Internet.
The main findings of the study are: All the slum areas are homogeneous in nature
either in terms of income or expenditure, But majority of the households are able to
generate sufficient income to suffice there consumption needs. Since most of the
women are already into income generating activities, therefore they will use this
amount for productive purpose only. It’s important that training need to be provided to
the women so that those women who are not into in any kind of activity can also go
for it. Incentives in form of reduced ROI for the next loan, for those groups who repay
the loan timely. For that if required, interest on the loan can be raised depending on
the commercial rates. The members should be encouraged to repay the loans before
time. The repayment should be weekly or monthly depending on the situation. I also
found that most of the households need serious repairs, so if some small loans for

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the repairing could be started they can be beneficial both to the bank and to the
members The house repairing loans will be provided to those groups only whose
repayment has been regular and all the installments repaid.

The study concludes that there is a lot of demand for this product, which can be
easily analyzed from the rapid growth rate, which has been achieved in making
members. Within this small time frame of four months we have been able to build
strength of 2000 members. The recommendations from the study are that it is
important that a training mode needs to be prepared so as to make the women aware
that how to use the amount for increasing their income. Not only that it should be
emphasized that the staff is more sensitive to the needs of the women and try giving
them options of different income generating activities. Some professionals need to be
hired who can continuously monitor and evaluate the performances of the SHG’S.
More and more women should be promoted to small ventures such as tailoring
shops, roadside vendors, beauty parlours, and formation of bakery products. If
possible they should combine together and form a small entrepreneurship in which
they can invest to gain more income

30. Project: Understanding Organisation - Matoshree Rampyaribai Dharmik

Pratishthan (2005)

Participant : Gaurav Loomba

Abstract:The study is not confined to only understanding the organisation to the

physical boundary of the Matoshree Rampyaribai Trust but also includes
Shrilekha Nagari Sahakari Bank, which is directly linked with formation of
self-help groups of the women. Apart from understanding of the basic
functioning of different departments operating in head office of Camel House
is attempted.

The objectives of the study were: To have a rational understanding of what an

organisation is all about, to know its activities, its strength and weaknesses., to
understand how an organization comes into existence, how it grows, adapts and
absorbs changes and sustains itself, to understand the interface between the
organisation and its external environment, to understand the perspectives and ethos
of individuals as it exists in the organisation and to understand the dynamics that
comes into play at various levels in the organisation. Appreciative enquiry, semi
structured interviews with stakeholders, unstructured interviews, observation,
informal discussion and secondary data sources consisting of various documents
available in the organisation was used for the study.

In the year 1981, Shri Kisanlalji Bastiramji Sarda established a public charitable trust
by the name of “MATOSHREE RAMPYARIBAI SARDA DHARMIK PRATISHTHAN”
after the name of his mother. The MRPB Trust has been long working into several
religious and other welfare activities but know it wanted that it should promote itself to
improve the status of women in the society “Empowerment has been defined a
process of change by which individuals or communities with little or no power, gain
power and ability to make choices that affect there lives”. For this it had taken the
help of its sister concern Shrilekha Nagari Sahakari Bank, which has for more than
twenty years into the process of saving and credit. The strategies adopted by the
Shrilekha Bank involve recruiting of the new staff, identifying those slum areas where
the women are into some activity or want to begin some business so as to become
self-reliant. Then introducing them to the Bachat Gat Scheme and asking them to
form a group of minimum 10 ladies who want loan for income generating purpose.

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The main emphasis is laid that the loan is used for productive purpose only and for
that continuous feedback is taken

The present status of the Bachat Gat Scheme is that we have been actively involved
from the beginning of May and have been able to increase the number of member
from 70 last year to 2391 in a period of just three months. The total number of SHG’s
formed by 11 July 2005 are 230.We are also actively involved in designing a training
module so as to make women aware about there rights and also give them
awareness about different income generating activities.

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31. Project : Evaluation of the Income Enhancement Program of Sehgal Foundation
in Select Villages of Mewat, Haryana (2005)

Participant: Anuj Kumar, (2004-2006)

Organisation: S. M. Sehgal Foundation
Reporting Officer: Ms. Ellora Mubashir
Faculty Guide: Prof. P. K. Singh

Abstract : S M Sehgal Foundation is a young NGO that is still growing. There are
four major programmes being run by the foundation in three villages of Gurgaon
district. These programs are Income enhancement (IE), water management, family
life education and rural health. The IE program has three components: Agriculture,
Entrepreneurship and Skills Development and Linkages. The objective of the study
was to evaluate the income enhancement activities being carried out by the
Foundation in the select villages and to give recommendations for better
implementation of the program. The study covered the three villages namely Agon,
Ghaghas, and Goela of Mewat District where the foundation is directly promoting IE
program. Primary information was obtained from discussions with the Executive
Director, Core team members, other staff members of the S M Sehgal Foundation.
Discussions and FGDs with farmers, members of Fruits and Vegetables Growers
Associations (FVGAs) and Self Help Groups (SHGs), government officials.
Secondary information was obtained from documents available at the SMSF, FVGAs,
SHGs, and Government Departments.

Foundation is following an integrated approach where different programmes overlap

in objectives and implementation stages. In just three years, IE program covered 30
Per cent of the house holds in these villages. IE Program activities have potential to
increase the income of the members at least 20 Per cent directly or indirectly. But the
villagers are not involving with the program to the extent this program has potential of
increasing income. The IE program is a tailor made program of the Foundation,
which the Foundation is implementing it in all the villages without seeing the
variations in these villages. Presently there is no Program Leader to look after IE
Program. The field staff of the Foundation itself is less adopting the activities of IE
Program.

The recommendations of the study include: Need to aware the villagers of all the
benefits of different activities of IE program with comparative analysis, self
demonstration of improved agricultural practices by the field staff to villagers,
geographical expansion and crop diversification in case of FVGA, proper planning
and coordination among the core team, field staff and the beneficiaries and emphasis
should be on qualitative aspects of each activity instead of quantitative aspects. The
study concludes that IE is a good program to empower the rural peoples. SMSF has
to understand the needs in a participatory manner of the people and then acts like a
friend, philosopher and guide to these peoples.

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32. Project: Understanding Organisation: S M Sehgal Foundation (SMSF),
Gurgaon, Haryana (2005)

Participants: Anuj Kumar , Anjali Godyal

Abstract : The main objective was to study the organisation with the help of various
instruments. The scope of the study was confined to the S M Sehgal Foundation
Head office, Gurgaon and field offices Nagina and Kurukshetra. The organisation
was studied as per the 7- S Framework across the factors of super ordinate goals,
structure, systems, style, staff, skill and strategy. Information was collected from
primary as well as secondary sources. The tools used for collecting data were
interviews with the employees of the organisation. Analysis of secondary records
available on net or with the SMSF. And the most important being the observation of
the functioning of the organisation over a period of 58 days of our stay with the
organisation.

SMSF is a young NGO registered as a trust under Trust Deed (dated 22nd June
1999), Office of Registrar, New Delhi. It is a self funded organisation. The
organization has a governing body in the form of Board of Trustees. Chairman is the
head of the organization as well as of the Board of Trustees There are four
programs, income enhancement, water management, rural health and family life
education run by the Foundation in the villages. The Organization is replicating
Integrated, Sustainable, and Village Development (ISVD) model in the villages
through Village Champions (VCs). The organization is also planning to set up a
training centre called Academy for Rural Research and Development (ARRAD),
being built in Gurgaon, Haryana. ARRAD will use computer based learning systems
to train the VCs. In addition, it will have facilities for research in social sciences and
advocacy.

Being a self funded NGO, the Foundation is very flexible to decide about its
programs and activities. The Foundation is a well paid NGO and hence no turnover
of the employees at field level. The core team is highly professional and but being a
flat organization there is hardly any chance to grow in hierarchy and hence the core
team members move to other organizations for hierarchical growth. There are some
limitations as the Foundation has tailor made programs and implementing these in
the villages. The Foundation has a withdrawal policy in four years, which is a short
span and fixed interval of time. It is difficult to change an underdeveloped village to a
model village in four years. The study recommends that the Foundation has to
develop its programs in a participatory manner with the help of villagers. The
withdrawal policy should be flexible.

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33. Project : To Study the Scope and Potential of Setting a Microfinance Institution
(MFI) (2005)

Participant : Alok Modi, (2004-2006)

Organisation: Bhoruka Charitable Trust (BCT), Bhorugram, Churu, Rajasthan
Reporting Officer: Dr. R.P. Bisht, Project Manager, BCT
Faculty Guide: Prof. H.S. Shylendra

Abstract : The objectives of the study were: To study the scope and potential of
creating a microfinance institution to cater to the needs of different SHGs engaged in
rural micro-enterprise activities in the villages of Churu, to study the present MF
operations of BCT and study the reporting procedures, need for training and capacity
building, and possible procedure for upscaling and to find a suitable structure for the
proposed MFI, which is self-sustaining.

The scope of the study included assessing the potential, present operations, and
suitable structure for viability of present operations in Rajgarh and Taranagar blocks
of Churu district of Rajasthan are covered. The study was approached using as base
the present MF operations of BCT. The method used for the study included field
visits, case studies, questionnaire, interviews and informal discussions with BCT
staff, interaction with bankers, focus group discussions with SHG members, and
interaction with non-beneficiaries. Literature survey from IRMA workshop on
‘Governance Issues in Rural Finance,’ and Internet were also used. The Primary
data for the study was collected from the SHGs, BCT staff and other stakeholders
using the above methods. Secondary data was gathered from records of the SHGs
and BCT, and some published articles on BCT. The analysis part uses the
description of the present operations and comparison with standard procedures as
gathered from various sources.

The present MF operations of BCT fall under onlending activity. They are run in
conjugation with the developmental activities of the trust. The onlending operations
are not financially viable to recoup own cost. There is a potential to do so by putting a
focused approach and by increasing the base of operations. However attaining this
potential will take a long time given the present status of SHGs promoted by BCT.
The SHGs though have grown in numbers but have not graduated to a stage of
forming a federation. The member awareness about the group activities is low and
scattered. In about half the groups the Aanganwadi workers of BCT are the key
person of the group and also the beneficiary in terms of availing the loan. The
present level of MF operations do not permit establishment of a full fledged MFI. Out
of the total 6115 members in SHGs only 155 are having loans at present. Most of the
lending is done for non-productive purposes. There are virtually no linkages of SHGs
with micro-enterprise activities and BCT itself is concerned about it. Further BCT
wants to continue the on-lending activities as an NGO and avoid probable tax
liabilities arising out of interest income. For the purpose, BCT plans to carve out a
separate entity to carry out the micro finance activity. This MF activity will be
separate from their other developmental works. Though there is scope for creating a
MFI, the potential is currently limited. BCT is working in this area since 1973 on
developmental issues. From 1999 it is trying to create awareness among the people
of this remote area through SHG formation and is also trying to cater to their credit
needs. Thereby BCT also becomes a party to the lack of awareness for livelihood
activities among its target population. It can not simply wash off its hands by shifting
the entire responsibility to the people. This is particularly of relevance as now the
BCT is engaged in onlending activities to this population. BCT is facing bottleneck
constraints on the issues of remoteness, non-awareness of IGAs among the target
population, recruiting and retaining professionally trained personnel, lack of

74
standardized codified working procedures, and lack of proper reporting systems in
the absence of an MIS support. The broader and long-term objective of starting the
MF activity is to provide banking facility at a lower spread to the target population.
The present view of BCT in helping the target population is restricted to charging
lower rates of interest. BCT wants to provide cheaper credit even below its present
rates of 12 Per cent to reach the poorest of the poor. BCT shifts the blame to the
financial institutions, which are providing funds at an average of 9 Per cent. BCT
opines that the financial institutions have failed to appreciate its specialized needs
given the low population density in this remote rural area, and consequent increase
in operations cost. A working structure to separate the MF operations of BCT has
been worked out. The structure scales up to have a dedicated and properly trained
staff for MF activities. The staff strength and the complexity of the structure can grow
with the increase in operations.

The study concludes that BCT is engaged in onlending activity and the SHGs are
virtually not linked with any IGA. The BCT wants to create a separate MFI to carry
out their microfinance activity under SHG model, in addition to other developmental
works. This is not financially feasible for the MF operations, as dedicated and
properly trained staff is needed for sustainable MFI operations to a proper scale.
There is a scope for creating an MFI by the BCT looking into the number of SHGs
formed by the BCT, but the potential for the same is limited. The SHGs are under the
process of graduating to linkages with IGAs and this process needs a fastening up.
There is lack of standardized codified working procedures, and lack of proper
reporting systems in the working of BCT. A structure for proposed MFI operations of
BCT has been worked out but the same may be adopted by BCT with subsequent
improvements in the MF procedures.

The suggestions for the BCT are to focus on Capacity building of the SHG members,
to fasten up the process of linkages to IGAs by use of demonstration effect, and
separating out the MF operations. The BCT can attain break even by looking for
better credit terms and generating the repayment capacities of the target population
to pay the full cost of the services. In order to enable upscaling, broadening of base,
and enforcing a strict credit discipline the BCT need to inculcate professionalism in its
approach.

34. Project: Understanding Organisation - Bhoruka Charitable Trust (BCT),

Bhorugram, Churu, Rajasthan (2005)

Participant: Alok Modi

Abstract : The objectives of the study were to study BCT as an organization and to
understand various component of BCT as system and to understand their inter-
relationship in functioning of the organization. The scope of the study covered BCT
project office at Bhorugram, Cluster offices and field operations in Rajgarh and
Taranagar blocks of Churu district and spin off organization BRJD public school at
Bhorugram. The study was undertaken using primary and secondary data, analysis,
interpretation & drawing of inferences from day to day observations. The data
collection included field visits, case studies, in-depth interviews, informal discussions
with various stakeholders, focus group discussions, interaction with non-
beneficiaries, and use of triangulation techniques. Primary and factual data were
collected through various interventions of BCT like SHGs, DPIP project, ICDS
project, from BCT staff, and other stakeholders using the techniques listed under
methodology. Secondary data was collected from records of SHGs, BCT, some
published articles on BCT, and Internet.

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The core strength of BCT is operating in this remote and difficult area with virtually no
competition. BCT has rent generating fixed assets and support from the TCI-Bhoruka
group, the parent organization. At the same time BCT is facing severe constraints in
recruiting and retaining professionally trained personnel on acceptable terms of
service, absence of standardized working procedures, skewed flow of information,
and mismatch between its objectives and working procedures. BCT generates a net
working loss despite sharing various resources between projects. There is no
computerized MIS system, which decreases the quantum of total, available
productive time. The communication channels are mostly top-down and legacy
issues dominate the administrative channels. There is lack of faith in new employees
and outsiders are viewed with skepticism.

The study concludes that BCT wants to continue as a small sized NGO in the
Rajgarh and Taranagar blocks of Churu district, and also wants to nurture smaller
NGOs in Churu and in other adjoining districts. BCT is not able to keep a focused
approach in programme delivery. There is an overlapping of programmes and more
emphasis is placed on the reporting formalities. As told by the BCT managing trustee
himself, the employees in the organization have no exposure to the outside world
and are not able to deal independently with the outside agencies. In order to attain
sustainability of operations and attaining dissemination and scalability of operations,
BCT need to inculcate professionalism in its approach.

35. Project: Study of OrganiSational Structure of Channel Partners (Two MFIs) of

ICICI Prudential Life Insurance (2005)

Participants: Mukul Kumar Singh, Shahid Ahmed Khan (2004-2006)

Organization: ICICI PRUDENTIAL LIFE INSURANCE
Reporting Officer: Mr. Srinivas Revanur
Faculty Guide: Prof. Nirlesh Kothari

Abstract : The objectives and scope of study the study are: To suggest ways to
bring about growth orientation in the decentralized network of organizations at
GRAMA SIRI (GS) (one of the channel partners) , to design scalable organizational
structure of STAR MICROFIN SERVICE SOCIETY (SMSS) (another channel
partner) and to identify the skill requirements and corresponding eligibility criteria for
key staff positions, to design incentive scheme for the loan officers (all these for
SMSS).

The methodology for GS, included assessment of the past performance of network
organizations on the basis of indicators like loan outstanding, funds received, number
of SHGs formed etc. then we interviewed chief functionaries and key staff members
of all the network organizations to gain an understanding of their own operations and
the environment in which they are working. Combining these two findings, we
identified the bottlenecks and possible solution. For SMSS, we assessed their current
level of operations and on this basis we tried to find out their staff requirement and
also how best it can be organized into an organizational structure which is compatible
with the planned growth of organization. We studied the MIS reports of last six
months relating to loan disbursement and performance of each loan officer.
Combining these findings with the strategic requirements of organization, we
identified the performance indicators for loan officers and on this basis we developed
formula for the incentive to loan officers.

GS started its microcredit operations in 1984 with a strategy to lend to a network of

organizations for onlending to SHGs. This network of organization had been created
out of clusters of GS with an objective of spreading the developmental activities to

76
new areas and new people. It is in this context that we conducted our study to know
the extent to which this objective has been achieved. We found that the network has
been only partly successful in attaining this objective with only 30 Per cent of target
population in operational area having been benifitted. we identified two major
problems in almost all the network organizations, namely weak governance and
flawed growth strategy. Due to weak governance there was no or weak accountability
to performance on the part of management. It also resulted in absence of well
defined strategy at the top. Besides these two factors, growth of network is also
being affected by strategy of converting former clusters of parent organizations into
full fledged organizations. This has resulted into clutter of organizations in very small
operational area with each organization eating into client base of other organization.
To pursue further growth, these organizations are opening new branches which are
far off from head office and thus adding unnecessarily to already high transaction
cost which characterizes micro finance operations. As regards SMSS, here the
existing organizational structure was marked by some redundant positions at head
office and branch office level. At head office there was no clear cut distinction of roles
and responsibilities of key staff positions. Furthermore, SMSS being a startup
organization, it had ‘growth in client base’ as its most important goal. But the loan
officers of the organization were showing stagnant performance on various
parameters. This necessitated the need of linking their compensation to performance
through a performance based incentive scheme.

Based on the study the recommendations are drawn. For GS, improvement in the
governance structure and well defined growth strategy for network organizations
which takes into account the external and internal environment of organizations is
necessary. For the board we recommended induction of members with more diverse
background, defining the rules governing induction and retirement of board members,
meeting of board and performance appraisal of board members. For SMSS, we
recommended an organizational structure with well defined hierarchy and the
corresponding roles and responsibilities. We also designed an incentive scheme
which is based on growth performance of loan officers.

36. Project: Understanding Organisation -ICICI Prudential Life Insurance Company

Limited (2005)

Participants: Mukul Kumar Singh, Shahid Ahmad Khan

Abstract :The objective of the study was to develop an understanding of the two
channel partners of the ICICI Prudential Life Insurance Company
Limited, namely GRAMA SIRI & STAR MICROFIN SERVICE
SOCIETY, (SMSS). The scope of the study was confined to Baptala
Mandal in Guntur district with regards to Grama Siri and Velgode
Mandal in Kurnool district with respect to Star Microfin Service
Society (SMSS). For Grama Siri, we interviewed the chief
functionary. Thereafter we made visits to the network organisations
of Grama Siri and interviewed its chief functionaries. At Star Microfin
Service Society, we interviewed the CEO of the MFI. We also
interviewed the central team manager of the MFI and other staff
members, like central team associates, area manager, respective
branch managers, loan officers, office mangers of the respective
branches. The secondary source includes annual reports, and
financial statements of last three years.

Grama Siri is a flat organisation with wide span of control. The board of directors at
Grama Siri and its network organisations has respectively nine members each. The

77
members of the board are chief functionaries, staff from the Grama Siri and the
partner organisations. However the authority rests with the chief functionary of
Grama Siri, who is also the promoter of the network organisations. Grama Siri carries
out a host of activities from its inception which include micro credit activity, insurance
as channel partners of ICICI Prudential, AIDS awareness campaign which is funded
by Bill and Milinda Gates Foundation(BMGF) and Hindustan latex family planning
trust(HLLFPT), health projects which is funded by Save The Children Fund(SCF).
The recruitment of staff is very informal and local, which is being done by the chief
functionary of the respective organisations in the network. With regards to micro
credit activity of Grama Siri, there has been change in its strategy of the MFI since
2003. Prior to 2003, Grama Siri was lending through its partner organisations.
However presently it directly lends through SHGs formed by it. It has completely
stopped lending through partner organisations. Star Microfin Service Society is a
three tier organisation which is headed by a CEO. It also has a central team headed
by a central team manager. The central team has two central team associates and a
social security manager. The MFI has three branches within a radius of 50
kilometers. There are three area managers who look after the three branches which
are in turn headed by three branch managers respectively. Each branch has loan
officers, office managers and office assistant. The MFI has a total of 38 employees. It
has concrete plans to open three new branches within this year, for which have
already conducted the market survey.

To sum up, at Grama Siri, the second line of command is absent. There is no growth
orientation in the partner organisations. The board is weak in the sense that it does
not ask for management accountability. The board does have people from diverse
set of skills. The partner organisations have not been able to mobilize funds from
diverse sources. They are basically dependent on Rashtriya Mahila Kosh (RMK) for
funding, though two of the partner organisations have approached local branches of
nationalized banks for the same. At Star Microfin Service Society, the organisation
has plans for expansion in far off Ananthapur District. Also there is lack of clear roles
and responsibilities for the staff. Of late, the MFI has been successful in mobilizing its
funds from different sources. The MFI does not have any finance manager to interact
with the funding agencies which ask for intricate financial details like cash flow, funds
flow, projections, ratio analysis etc. from the MFI. Also the expansion plans would
result into scaling of operations of the MFI. Therefore the MFI has decided to make
structural changes with expansion plans in mind. The present organisation structure
therefore had to be redesigned, with this in mind.

37. Project : Preliminary Study for Launch of Microfinance Institution (2005)

Participants: Abinash Mohapatro, Neeraj Kumar Lal, Nitin Gupta, V. S. Ravi Kumar
Tadimalla, Rohit Garg, K. Somanadha Babu, (2004-2006)
Organisation: Community Services Trust, Salem.
Reporting Officer: G. George, Director
Faculty Guide: Prof. Nivedita Kotiyal

Abstract: The objective of the project was to do a study for the microfinance
institution that will address the following issues: a) Most appropriate legal status with
an aim of minimum government interference and maximum freedom for the
members, b)Product development, c) Procedures and delivery mechanism and d)
Identify weaknesses of the existing staff structure

For project ‘a’ the methodology involved studying existing literature (papers by
experts like M. S. Sriram, Akhileswar Pathak etc.) on the various possible legal
structures and evaluating their merits and demerits keeping in view the requirements

78
of the organization and ground situation. For projects b, c and d, sample survey was
done to gather information from SHGs promoted by CST in Salem and Namakkal
districts. Information has been collected both at individual level and at group level
using a questionnaire and checklist. Individual level information was aimed at
mapping the credit requirements of the members for designing products for MFI.
Group level information helped in identifying weaknesses of the existing structure
along with convenient procedures and delivery mechanism for the products identified.

As far as legal structure is concerned, as most of the structures were not meeting the
major criteria, we proposed a hybrid structure which has already been experimented
by Sarvodya Nano Finance Limited in Tamilnadu as this satisfied the criteria and also
suited the ground situation in which the organisation is working. This consisted of
federations registered as trusts at block level which further came together in a not for
profit company (section 25), as shareholders. Products were designed after
analyzing information about credit requirements of various income generating
activities undertaken by members. These activities were clubbed into different
clusters on the basis of similar characteristics like initial capital and regularity and
amount of inflows. Their repayment was designed based on the inflows and outflows
of the activities falling in that particular cluster. Products were not proposed for all
consumption needs as we found that most of such needs were met out of the internal
lending of the groups. The procedures for application of loan and subsequent
delivery mechanism have been suggested as part of project ‘c’. For project d, the
shortfalls of the existing staff structure like lack of clear job description and therefore
responsibility and accountability, scope for corruption etc., have been pointed out. As
a solution, we recommended both quantitative and quantitative changes in the staff
requirements in accordance with the proposed hybrid legal structure. By ensuring the
community participation in the policy making and decision taking processes, little
scope has been left for staff to indulge in corruption.

38. Project: Organisation Understanding- Community Services Trust, Salem (2005)

Participants: Abinash Mohapatro, Neeraj Kumar Lal, Nitin Gupta, V. S. Ravi Kumar
Tadimalla, Rohit Garg, K. Somanadha Babu

Abstract: The objective of this component was to understand the various aspects of
an organization, it’s functioning and how it copes with the various influences, both
internal and external. Different frameworks were used to understand the organisation
from different perspectives and interpretation is based on our own understanding of
the subject. Information for this purpose was gathered through unstructured and
semi-structured interviews, focused group discussions, unobtrusive observations,
and analysis of organizational records. Using the universal business model as the
basis, various aspects of the organization have been studied and presented.
Universal Business Model is a generic framework like McKinsey 7S framework which
has helped us in data collection. Apart from this, our own understanding of
organizations from our coursework has been used to make inferences about aspects
like culture, environment, strategy etc. Our limitations were time and language. Nine
weeks were too short to have a comprehensive understanding of the organisation.

Community Services Trust (CST) is an NGO involved primarily in promotion and

nurturing of women SHGs and to a minor extent in child rights in partnership with the
government and is working mainly in two districts of Tamilnadu, namely Salem and
Namakkal.

The major finding has been that despite the constraining influence of its partnership
with the government, the organisation has made substantial contribution to

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community empowerment through women’s SHGs, which has been its mission. Due
to the resource constraints, that the organisation has been facing, it has not been
able to match its staff requirements necessary to consolidate the results achieved so
far with a stable human resource policy leading to lack of role clarity and switching of
responsibilities between employees. Because of the same reason, it has not been
able to recruit any professionals till now and all employees have come from grass
roots. It has resulted in the concentration of power in Director – a very committed
activist who is also the founder of the organisation – and absence of a second line of
management leading to all strategy and policy level decisions being made by him
only. High turnover rate in the organisation has also affected the evolution of a strong
culture. The organisation is currently undergoing major changes as it is going to start
its own micro-credit operations. As a result, recruitment of a few professionals,
improvement in infrastructure, and drastic changes in assigned roles of the block
level workers has been taking place. Some of the important conclusions pertain to
the importance of professional assistance, financial stability and systems, especially
HRM systems, to properly channelise its efforts which currently are not well-
coordinated and to protect itself from the negative influences of external environment
so that it can better realise its vision.

39. Project: An In-depth Study of Community Managed Resource Centers (2005)

Participants: Vishwasree Boga and Bhanu Shyam Nakka (2004-2006)

Organization: MYRADA, Bangalore
Reporting Officer: Ms.Saleela Patkar
Faculty Guide: Prof. N.C.Narayanan

Abstract: The objectives of this project are: To understand the Community Managed
Resource Centers and their evolution, evaluating these CMRCs by
examining their management systems (functioning) and to look at
sustainability of these CMRCs. The study covers Kadiri in Andhra
Pradesh, Mysore in Karnataka and Dharmapuri in Tamilnadu. The
methodology of the study is Exploratory and Descriptive. It is
basically evaluation of Resource centers. Primary and secondary
data were collected. Tools like semi-structured interviews, focus
group discussions and direct observations were used for primary
data. Secondary Data Sources consisted of the office documents,
books of accounts etc.

Community Managed Resource Centers (CMRC) is a concept (2001-02) promoted

by MYRADA as a part of its withdrawal strategy. These CMRCs with local CBOs as
members (which are usually the SHGs) undertake the need based activities. The
three project areas of MYRADA which were studied are different in terms of local
conditions, the donor agencies and the programs being undertaken. The basic
activities of CMRC are bank linkages, auditing and training. Service charges specific
to each activity and also annual subscription fee are collected and used for the
maintenance of office and to provide additional services. There is only one employee
from MYRADA who is now being paid the salary by MYRADA.

The primary stake holder’s i.e. SHGs have now started realizing the concept of
CMRC and making proper use of CMRC. In the areas where the PLAN International
programs are still going on, the CMRC is viewed as MYRADA office and not a
community institution. In majority of the CMRCs the primary stake holders are of the
view that CMRC will function as bank in future and the only purpose of CMRC is
bank linkage. There are variations in understanding of the subscription fee and
service charges. Though CMRC is a community institution at present most of its

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services are to women. Almost all CMRCs that were studied are in the process
attaining financial sustainability. The sources of other income are trainings to SHGs
of other NGOs, servicing line departments and services like home appliances to
members.

The establishment of CMRC as a part of withdrawal strategy seems to a good

concept. However this concept has to reach all the stake holders of CMRC. Some of
the suggestions given were: Proper orientation needs to be given so that the surplus
fund (FD) in CMRC may not be used for financial purposes (lending) in future. The
vision and demand (request) of activities of CMRC needs to come from the SHGs
rather than from the executive committee or MYRADA. Activity wise income and
expenditure can be introduced. Monitoring book can include the services given to
each member apart from keeping track of subscription being paid and CMRCs need
to bring out calendars or newsletters to create more awareness of the relevance of
CMRC within the community.

40. Project: Organisation Understanding - MYRADA, Bangalore (2005)

Participants: Vishwasree Boga and Bhanu Shyam Nakka

Abstract : The objective of the study was to understand the organisation in terms of
its genesis, mission, vision, activities, strategy and dynamics with the aid of
frameworks studied during the course. At present MYRADA is managing 18 projects
in 12 districts spread over 3 different states. Each project is unique in its own sense.
The study was limited to 3 project areas namely Kadiri in AndhraPradesh, Mysore in
Karnataka and Dharmapuri in Tamilnadu and hence the organisation study is more
relevant to these 3 projects.

SICDO framework was used to understand the organization from various

dimensions. The methodology for collecting data has been primary and secondary
data sources. Primary data sources consisted of interactions with the staff and
informal discussions. Secondary Data Sources consisted of various documents
available in the organization.

MYRADA was started in 1968, to work for Tibetan resettlement. It formed

cooperatives with them in Mysore district of Karnataka. With its success in Tibetan
cooperatives, it tried to apply it in other regions but was not successful. It is the first
to bring out the concept of Self Help Group and has set up an MFI called Sangamitra.
Its work area includes watershed management, arid lands regeneration, fostering
livelihoods and health activities (recently into HIV/AIDS project). At present it is
coordinating 2 NGO networks. MYRADA is best known for its training programs with
trainings being offered both to national and international NGOs, bankers and
governmental officials through CIDOR (Center for Institutional Design and
Organizational Reform).Recently MYRADA has promoted Community Managed
Resource Centers in areas where MYRADA is planning to withdraw. These are
managed by the community groups and it is staffed by one MYRADA senior staff.

The highest deciding body in MYRADA is board. The Head Office in Bangalore
establishes policy guidelines whereafter the Projects determine their own plans.
While programme management and financial systems are decentralized to the
project level and below, personnel policies and Mission Statement are common. The
projects can raise the local funds while international funds are routed through the
head office. The organization is very flexible. It gives freedom for the staff to explore
and experiment. In 1990 MYRADA has 699 staff and now it declined to 506 as local
communities are taking over many of the functions earlier performed by MYRADA.

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Besides, MYRADA interventions have become more strategic in recent years
requiring fewer but more experienced staff. The broader concepts are not always
clear to the staff below the level of project officer. The future strategic path of
MYRADA is not clear to all the staff. MYRADA appears to be highly dependent on
ED both for leadership and also innovative ideas. The major documentation part is
done by the ED and other staff at head office hence the ideologies are from their
point of view which is taken by the other MYRADA staff. There is no role clarity in
some jobs and for most of the staff workload is high.

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 4. Abstract of Village Research Papers
In this section, the abstracts of Fieldwork Segment (FW) Village Research papers on
microfinance sector are given. The abstracts are given year wise. A list of all FW
papers on microfinance prepared during 2001-05 is given below.

Village Research Papers on Microfinance, 2001-2005

Participant Year of
Sr.No. Title Of The Study Oragnisation
Name(s) Submission
Vaishal Patliputra
Customer Satisfaction of
1. 2002 Dugdh Utpadak
Mr. Rajiv Khanna Rural Credit and Insurance
Sahakari Sangh
Services in a Village
Ltd., Patna
SHGs (Women) as 2002 Centre for Youth
2. Ms. Mohammad Instruments for Non-Farm and Social
Hasfa Noorji Income Generation Development
Projects (CYSD)
3. Rural Credit System in a 2002
Mr. Stanzin Tsephal UNNATI
Village
Mr. Rajesh Kumar 2002
4. Role of Moneylender and Manavodaya,
and Mr. Rajeev
Impact of SHG in a Village Lucknow
Bhatia
2002 Malabar Regional
Customer Satisfaction of
5. Mr. Girish B Milk Producer’
Rural Credit and Insurance
Mr. VC Anooj Union Ltd.,
Services
Kozhikode
6. A Study of Self Help 2003 Seva Mandir,
Ankur Kumawat
Groups Udaipur
SHG’s Role in Bringing
7. Pabitra Kumar
Changes in Women’s Life 2003 FARR-CASHE
Rath, Amit Saha
at Family Level
Role of Financial 2003
Institutions in Empowering Cohesion
8. Bharat Kumar
Earthquake Affected Foundation Trust
Manilal Patel
People and in their
Rehabilitation
Study of Micro Credit 2003
Shekhar Kumar
9. Programme Run by NBJK Nava Bharat
Sinha, Malkit Singh
with Special Reference to Jagruti Kendra
Didyala
Women Empowerment
2003 Allahabad District
Milk Producer’s
10
Rohit Mandhotra, SHG Formation and Cooperative
.
Shilpa Bhan Awareness Union (Parag
Dairy)

Income Generation and

11 Expenditure Pattern in a
Rajpreet Kaur and Aga Khan Health
. Village Community and its 2004
Navneet Jalan Service
Impact on Saving and
Investment Behaviour
12 Ankur Shandilya Demand and Supply of 2004 Foundation for
. and Raman Jain Financial Services Among ecological
Rural Household’s: A security
Comparative Study of Two

83
 Participant Year of
Sr.No. Title Of The Study Oragnisation
Name(s) Submission

Tribal Villages in Rajsthan

Demand and Supply of 2004

Financial Services Among
13 Aga Khan Health
Rural Households - A
. Rajat Singhal Service
Study in Katrasa Village of
Maliya Taluka of Junagarh
District of Gujarat
A Study on the Structure 2004
14 Foundation for
and Operations of Formal
. Mahim Mishra Ecological
and Informal Rural Credit
Security
Systems
15 Jitendra Nayak , 2004
An in-Depth Study Of Gram Vikas
. Sushant Kumar
SHGs in the Villages
Tripathy
Income Generation and 2004
Vaishal Patliputra
16 Expenditure Pattern in the
Dugdh Utpadak
. Ashutosh Kumar Village Community and
Sahkari Sangh
their Impact on Savings
Ltd
and Investment Behaviour
17
Kiran Kumar Puttah Empowerment of Women BYRRAJU
. 2004
, PS Kiran Kumar through Self-Help Groups Foundation
Current Challenges and
18 V. S. Ravi Kumar Problems of Micro Finance
Akshara
. Tadimalla and K. Based Poverty Alleviation 2005
Somanadha Babu Programmes in Andhra
Pradesh Villages
A Study of Velugu and 2005
19 World Vision SHGs in
B.Kanti Kiran and M
. Mahbubnagar And
Lokesh
Nalgonda Districts of
Andhra Pradesh
Vishwasree Boga 2005
20
and Impact of Self Help Groups AKSHARA
.
Bhanu Shyam on Rural Livelihoods
Nakka
Transparency and Overall 2005
Working of the
Swarnjayanti Gram
Arthik
21 Swarozgar Yojana (SGSY)
Anusandhan
. Abadhesh Rusia including an Appraisal of
Kendra
the Role Played by PRIs,
Block-Level Government
Officials and Bank
Functionaries
2005 Centre for youth
22 Current Challenges and and social
Nitin Gupta and
. Problems of Micro Finance development
Umanath Mishra
Intervention (CYSD)

84
 Participant Year of
Sr.No. Title Of The Study Oragnisation
Name(s) Submission
23 Study of the Credit System
PRADAN
. Rohit Garg (Formal And Informal) and 2005
Placing SHG in It
Scope and Prospects of 2005
24 Ravi Chandra and Evolving an Insurance Village welfare
. Shahid Ahmad Product by the Village society
Khan Welfare Society as a Micro
Finance Institution.
Critical Appraisal of 2005
Savings and Credit
25 Samrat Mazumdar Village welfare
Products Evolved by
. and Kausik Kumar society
Village Welfare Society in
Chakraborty
its Conduct as a Micro
Finance Institution
Current Issues and 2005
Challenges in Microfinance
26 Anant Jayant Natu Sampada Trust-
Interventions": A Study of
. and WOTR
the SHGs of Sampada
Neeraj Kumar Lal
Trust in the Ahmednagar
District
27 Anukul Sahoo and Contribution of Credit and 2005 People’s Rural
. Swadhin Anand Non credit inputs in Education
Guru national rural employment Movement
generation programmes (P.R.E.M.)

28 Tushna Dora and Current challenges and 2005 Chaitanya

. Tanushree problems of micro finance
Chatterjee interventions
29 Guru Datt and Assessment of financial 2005 IBTADA, Alwar
. Hariom Gulati services availed by
members vis-à-vis non-
members of SHGs.
30 Shruti Chhangani Assessment of financial 2005 Chaitanya
. and services availed by
Rajnish Ranjan members vis-à-vis non-
Prasad members of SHGs
31 Richi Agarwal and Study of financial issues of 2005 Chaitanya
. Chandrakant SHG
Kashiram Ingole
32 Manoj Bobade Current challenges and 2005 People’s Rural
. problems of micro finance Education
interventions Movement,
Orrisa

33 Swati and Current challenges and 2005 Nav Bharat

. Ashish Jha problems of micro finance Jagriti Kendra
interventions (NBJK),
Jharkand

34 Rajeev Kumar and Current challenges and 2005 Adithi Plan-

. Kumar Nilabh problems of micro finance Bhihar
interventions

85
 Participant Year of
Sr.No. Title Of The Study Oragnisation
Name(s) Submission
35 Swetha Bharadwaj SHGs as an instrument of 2005 Tarun Bharat
. and Ruchi Luthra social empowerment Sangh

36 Shruti Sehgal and SHGs as an instrument of 2005 Chaitanya

. Swati Bothra social empowerment

37 Arun Kaushik and Sustainability of 2005 Nava Bharat

. Ujwal Shankar Microfinance Interventions Jagriti Kendra

38 Anand Prakash Costs incurred by MFIs for 2005 Nava Bharat

. and micro finance schemes Jagriti Kendra
Amrit Choudhary
39 Rebati Raman and Sustainability of 2005 Nava Bharat
. Binu Jhawar Microfinance Interventions Jagriti Kendra

40 Vishwajeet Kumar Costs incurred by MFIs for 2005 Nava Bharat

. and micro finance schemes Jagriti Kendra
Manish Chandra

86
1. Village Research Paper : Customer satisfaction of rural credit and insurance
services in a village (2002)

Participant: Mr. Rajiv Khanna, (2001-2003)

Host Organization: Vaishal Patliputra Dugdh Utpadak Sahakari Sangh Ltd., Patna,
Bihar
Faculty Guide: Prof. M R Suresh

Abstract: The study is based in village Ishmailpur, situated around 30 KMS from
Patna district. The main objectives of the study were- 1) to find out the major
purposes of taking credit, 2) to find out what factors that attract the villagers to a
particular financial source, 3) to measure satisfaction levels, 4) to compare different
sources of finance across different parameters and 5) to find strengths and
weaknesses of each source. The study also covered the insurance services. The
study used different parameters to gauge the level of client satisfaction belonging to
different formal and informal financial sources in the village. The study used a
questionnaire with around 20 respondents across each financial source. In depth
interviews were also conducted with the financial service providers to understand
who avails financial services from them and the financial products they offer.

The sources of financial services present in the village were commercial bank,
money lenders and other sources such as friends and relatives. With regard to
insurance, no formal institution was located in the village. However, insurance agents
were operating in the village. The study used following parameters to assess the
satisfaction level of clients across different financial sources in the village. 1. Tangible
aspects- Infrastructure of the financial service provider, 2.Availability of suitable
financial products and staff for service. 3. Responsiveness of the source in servicing
4. Need of a Collateral 5. Collaborative- Whether the financial source is flexible
enough to serve the needs of the clients 6. Accuracy- Whether the source is accurate
and transparent in dealing with the clients 7. Ethical aspects- Whether all the
customers are treated equally. The study based on the survey across clients from
different financial sources came up with following conclusions: With regard to the
banks, the clients were satisfied on the accuracy and interest rate charged. However,
clients complained of corruption and indifference in dealing with clients by bank staff.
Further, delay in service was also noted. Majority of respondents belonged to this
category of response. With regard to Private institutions, the clients in the sample
were satisfied with regard to responsiveness, no collateral being asked and good
collection system. The clients however felt that fixed period of loans was a major
weakness of the source and the source was good for business purpose only. With
regard to moneylender, the clients were satisfied as no collateral was needed, the
source was always available , loan was available without delay and it was negotiable.
On the flip side high interest rate charged was mentioned. (around 60 Per cent).
With regard to other sources of friends and relatives, the clients felt that loan was
readily available at a very low interest rate and loans were also instantly available.
However, the clients felt that the loan amount available was small and for a short
duration.

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2. Village Research Paper : SHGs (Women) as instruments for non-farm income
generation projects (2002)

Participant: Ms. Mohammad Hasfa Noorji, (2001-2003)

Host Organization: Centre for Youth and Social Development (CYSD), Orissa
Faculty Guide: Prof Sara Ahmed

Abstract: The main objectives of the study were to understand the role of SHG in
generation of income through non-farm activities and to explore other possible
avenues, the SHGs can venture into for income generation. The study was carried
out in four villages of Hemgir block of Sundargarh district of Orissa. The four villages
were Surulata, Pithampur, Ghainachal, and Tangardihi. Interactions were held with
select SHGs in these villages. The study first identified the different farm and non
farm activities undertaken by the people in these villages. Agriculture continued to be
the main source of livelihood. The non farm activities taken up by some of the SHGs
were- sale of non-timber forest products, badi making, managing a ration shop,
tailoring unit etc. Some of these activities were in the pipeline and their status during
the study period was ‘yet to be initiated‘. The study assessed the impact of starting
SHGs with two aspects- economic impact and social impact. Under economic
impact, the study notes that due to SHGs there was increase in savings, easy access
to credit, credit available at a cheaper rate and due to SHGs taking up various farm
and non farm activities there was enhancement in their incomes. Under the social
impact, the study found that self confidence among women had gone up, there was
increased awareness regarding importance of saving and attaining economic self
sufficiency and health issues. The SHGs, the study notes had also provided a
platform for women to discuss various issues relating to households and community.
Like banning liquor sale in the village. The study notes that the main problems faced
by these SHGs are with respect to maintenance of proper accounts, monitoring of
activities and in the formation stage. SHGs also faced the problem of recovery. The
study suggests following non farm activities that could be taken up by SHGs- leaf
plate making, mudi making ( a common item taken for breakfast), pickle making,
poultry and dairy etc. The study notes that these activities can be viable as the village
is located near to the towns. Further the study found that SHGs have surplus funds
which could be invested in these ventures. The NGO facilitating these SHGs was
also willing to extend necessary support.

3. Village Research Paper: Rural Credit System in a village (2002)

Participant: Mr. Stanzin Tsephal, (2001-2003)

Host Organization: UNNATI ,Rajasthan
Faculty Guide: Prof. Shailesh Gandhi

Abstract : The study was conducted in one village of Rjasthan State. The main
objective of the study were- 1)to understand the various purpose for which credit is
sought in a village, 2) to look at various sources of credit in a village, 3) to find out the
problems faced in availing credit, 4) to see whether formal credit for development has
reached the target group , 5) to see the role of rural credit in poverty alleviation and
lastly 6) to understand the dynamics of informal credit sources in a village. The study
was based on informal interviews with households, interviews with key informants in
the village and PRA techniques was used to understand peoples perception about
various aspects of formal and informal credit sources. The study in the beginning,
gives a brief profile of characteristics of formal and informal credit sources in the
village. A ranking was carried out for various sources – local money lender, co-
operative bank, other bank and relatives in the village. These financial sources were

88
ranked on a four point scale on following criteria- Less interest rate, long period of
credit, easy access to credit and need of a collateral. Based on this ranking the study
analysed which source is preferred and why. In terms of interest rate, the villagers
first choice was friends and relatives. The least preferred was moneylender. For
duration of credit, the villagers preferred cooperative bank followed by other bank
and moneylender. The study notes that for longer duration credit, villagers don’t mind
doing the paper work needed by formal credit institutions, but for smaller period loans
local moneylender works out better and was more cost effective. In terms of
availability and access the first choice of the villagers was to turn to friends and
relatives and the moneylender followed by cooperative bank. Non availability of
consumption loans from formal institutions made the villagers to access it from
friends /relatives and moneylender. The study notes requirement of collateral by
banks (both cooperative and other bank) restricts the choice of villagers to access
credit from them. The study also ranked along with the villagers for what and when
credit was sought. Ranking was carried out on a ten point scale to understand the
purpose of borrowing across 12 month period. The main purposes were induced
borrowing due to drought, for construction, for farming, for marriage and for mrityuboj
(practice of offering village feast on 13th day after death) . The main borrowing
happened for consumption purposes due to drought situation in the village. This was
followed by borrowing for marriages. Borrowing for construction was less as the
village had practice where households themselves constructed their house using
local material and help from others. Needs of credit for farming was also found low as
it depended mostly on rains and used traditional methods. However, the study notes
that some farmers have started using HYV of seeds and credit needs are rising.
Marriages accounted for a large portion of credit need. The study notes that Mrityuboj
also accounted for a large credit need. In case of higher castes the expenditure was
around 1 lac and in case of lower caste expenditure was as high as Rs.40,000. The
study also mapped out the credit pattern across various purposes and respective
sources, villagers approach for the credit. The study also analyzed the demand for
cash needed among villagers and the main supply of cash in the village economy.
The main demand for cash in the village was for consumption purpose,
production/investment purpose and meeting social obligations. In terms of supply, the
villagers mainly received cash from farming(selling surplus production) , sale of
animals (mostly goats and sheep) and labour (through migration in case of cash
deficit). The study notes that when demand for cash exceeded the supply- it led to
migration and when supply of cash exceeded the demand then it was seen to be
associated with high level of drug abuse. The study concludes that investment scope
was limited in the village, there is not much scope and urge for credit for production
and marginalized farmers had no access to formal institutional credit.

89
4.Village Research Paper: Role of moneylender and impact of SHG in a village
(2002)

Participants: Mr. Rajesh Kumar, Mr. Rajeev Bhatia -Year- 2001-2003

Host Organization: Manavodaya, Lucknow , Uttar Pradesh (U.P)
Faculty Guide: Prof. Shylendra HS

Abstract: The study was conducted in two villages, Alipur and Paharpur of Sitapur
district in UP. The main objectives of the study were to study the role and
functioning of moneylenders, to study the formation and functioning of
SHGs, to study the impact on the business of moneylenders post SHGs, to
understand the design and structure of SHG and finally to study the
changes in village life after formation of SHG. The study was conducted
through interviews with SHG members, survey of households and group
discussions. The main hypothesis of the study was that SHG will eliminate
the business of money lenders. The study in its survey found that villagers
accessed the loans from moneylender for different purposes like agricultural
expenses, expenses on marriages, death rituals, medicine, construction etc.
People also borrowed for gambling and drinking. Some people also
borrowed before they set out on migration as they were unsure of getting
work there for some period. The study examined the modus operandi of
moneylenders and found that the interest rates charged varied between 10
to 20 Per cent per month. The moneylender had a very strong mechanisms
of enforcing recovery. If the loan ultimately remained unpaid, the
moneylender resorted to confiscation of assets of the borrower especially
land. The study in one of its case studies fond that that the household
under the debt trap of the money lender had paid an interest of Rs.1, 08,
000 in interest over a period of 10 years on the loan of Rs.24000. With the
establishment of SHG, the study notes that another channel of financial
borrowing was available to the villagers. The interest rates in SHG were
comparatively cheap and the dependency of SHG members on
moneylender had reduced. The other important benefit of SHG was in the
area of women’s empowerment. However, the study found that villagers still
depended on the money lenders for big loans and for the non- SHG
members moneylenders still continued to be the sole source of credit. The
study suggests increase of savings in SHG, inclusion of non SHG members
in SHGs, promotion of income generation activities and SHG to broaden
their developmental activities apart from financial intermediation.

5. Village Research Paper: Customer satisfaction of rural credit and insurance

services (2002)

Participants: Mr. Girish B and Mr. VC Anooj (2001-2003)

Host Organization: Malabar Regional Milk Producer’ Union Ltd., Kozhikode, Kerala
Faculty Guide: Prof. M R Suresh

Abstract: The study was conducted in Nellipoil and Chulliparamba villages situated
in Kozhikode, Kerala. The main objectives were to identify sources of credit and
insurance services in the village, to measure the level of satisfaction of these
services and across these services, to understand major factors influencing
satisfaction of the customers and to find the strengths and weaknesses of these
services from customer satisfaction perspective. Judgmental sampling was used and
20 customers from each service under the study were included. The total sample
was 140. Sampling unit was any resident of the village who had availed any service
from the institutions in last 5 years. The study identified seven factors to measure the

90
customer satisfaction level. Interviews were held with sample customers to assess
the level of their satisfaction regarding the credit and insurance services offered by
different institutions. The seven factors considered were; 1.Tangible aspects-
Infrastructure of the financial service provider, 2.Availability- of service at right time
and right form (interest rates/service charges etc ) 3. Accommodative- in servicing
the needs of the customers 4. Accuracy- Whether the source is accurate in
calculations, punctuality, passbook updating etc. 5. Collaboration- Whether the
financial source is flexible, friendly and frequency of communication 6.
Responsiveness – ability to meet unusual needs and effectiveness in complaint
handling 7. Ethical aspects- Whether all the customers are treated equally and
whether the firm is hiding any information from the customers. 30 statements were
formulated for credit services and 25 statements for insurance services. The
customers were asked to rate each of these statements on a five point scale ranging
from strongly agree to strongly disagree. The various institutions considered were
commercial bank, cooperative bank, RRB , moneylender and SHG. Based on the
findings of the survey across clients from different financial sources, the study
concludes that accommodativeness, responsiveness and collaborations were the key
factors affecting customer satisfaction in the villages. The study notes that banks
failed to delver the expected due to lack of attention to aforementioned three factors.
With regard insurance services, the study notes that many customers could not
respond due to total lack of awareness.

6. Village Research Paper: A Study of Self Help Groups (2003)

Participant: Ankur Kumawat, (2002-2004)

Host Organization: Seva Mandir, Rajasthan Udaipur
Faculty Guide: Prof. Prabal Sen

Abstract: The study was conducted in the village of Ramaj situated in Udaipur
district Rajasthan State. The main objective of this study were to understand the
process of formation and functioning of SHG in the village and understand impact of
these SHGs. The study used both primary and secondary data. The study gives
details of the population, population that migrates , sources of livelihood of people in
the village etc.. The study notes that the village had 9 SHGs functioning. The main
reasons for availing loans from the SHG were consumption purposes like purchase
of food grains and fodder, health expenses, marriage and funerals. The other
purposes the study notes were well deepening, buying requirements of agriculture,
education etc. The study also enquired the reasons for some women not joining
SHGs- These were- migration, lack of trust and apprehension about the safety of
their hard earned money and ignorance about SHG and its objectives. The study also
found that there were some families who were very poor and not in a position to save
in the SHGs at the rate decided in the SHG by consensus.

The study notes that due to SHGs, the dependence on money lenders had reduced,
credit was available without a collateral, access to credit from bank had improved
and a habit of savings had improved. Specifically, the study found following impact of
SHGs on its women members, -reduced dependency on moneylenders, SHG
opened an opportunity to save and earn income and there was increased awareness
about money management. On the flip side, the study notes that even if women’s
access to credit had improved the control on its use still was with the men. The study
recommends that clear rules need to be formulated for SHG functioning and more
emphasis needs to be given on starting new income generation activities.

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7. Village Research Paper: SHG’s role in bringing changes in women’s life at family
level (2003)

Participants: Pabitra Kumar and Amit Saha (2002-2004)

Host Organization: FARR-CASHE, Orrisa
Faculty Guide: Prof. H S Shylendra

Abstract : The main objectives of the study were to understand the concept of SHG
and its functioning, role of SHGs in women’s lives and do an assessment of impact of
SHG on its women members at the household level. The study was done with help of
informal focused group discussions, observations, discussions with NGO staff and
other stakeholders in the village like teachers, village leaders and men from the
community. The study covered two villages, Chanalima and Mohangiri villages in
Kalahandi district of Oriisa and interactions were held with 100 women. The impact of
SHG on women at the household level looked at both economic and social
indicators. The perceptions of the women were analsed by asking questions
regarding changes in decision making about self. The study found following major
changes in the lives of the women after they joined SHGs. SHG gave women a
platform where they can share their feelings, economic empowerment infused
confidence apart from improvements in living conditions. The study also notes
improvements in lives of women through overcoming the feeling of low self esteem.
SHG also has infused unity amongst its members and a collective voice. A good
number of women also opined that gender equity needed to be ushered in. The study
concludes that SHGs in both villages brought changes in women’s lives by bringing
women on a common platform and by inculcating the habits of savings. Women now
were seen as agency for accessing credit and starting some business. This also
improved their status in the family. SHG activity in these villages were beyond just
savings and credit and SHG had also worked on some social issues like education,
health, clean drinking water etc. The study recommends that emphasis on income
generation by developing economically viable projects and improving the skills of
women to take up such projects. The study notes that for achieving more
effectiveness apart from microfinance efforts need to be made to usher in good
health care system, education, good communication and availability of market
information.

8. Village Research Paper: Role of financial institutions in empowering earthquake

affected people and in their rehabilitation (2003)

Participants: Bharat Kumar Manilal Patel, (2002-2004)

Host Organization: Cohesion Foundation Trust, Gujarat
Faculty Guide: Prof. Prabel K. Sen

Abstract: The main objectives of the study were to understand the credit needs of
the village, to analyse factors affecting the credit, to study the potential scope for
financial institutions, to study the role played by different financial institutions and
finally to understand the overall implications of these on the overall development of
the village. The study was based in Moda village of Kutch region of Gujarat state. As
part of the study interactions were held with both the villagers and concerned
representatives of various financial institutions servicing the village. The study
covered a sample of 105 households. The sample comprised of people from Patel,
Rabari, Harijan and Koli and other castes. The main source of livelihood amongst
them was agriculture and wage labour for the land less. Approximately, 70 per cent
of Rabaria and Harijans from the community belonged to landless-wage labour
category. An important finding from the study was that 54 out of 105 households
needed credit for sustenance. These households needed credit frequently, for a short

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period of time and for consumption purposes. The rest needed credit for some
income generation activities. The study also mapped asset holding pattern of the
vulnerable households. The main credit needs of these households were
consumption followed by agriculture. The major need of credit for consumption were
for the purposes like food, medicine, social ceremonies, education, travel etc. Overall
the credit needs of the sampled households worked out to be Rs. 5,32,704. The
study also analyzed the preferred source of the villagers to access credit. Though the
moneylender was the most accessible, the villagers preferred banks and the
government for meeting their credit needs. Cooperative society, friends and relatives
also constituted an important source. Further, the villagers were availing credit from
multiple sources as one source was not able to meet their entire credit demand.
Though banks were preferred source of credit, the study found that only 8 per cent of
the credit needs were met by the bank. The Moda seva Sahakari Mandali ltd and
Kutch Grammen bank (a RRB) played a key role in meeting the credit needs of the
members. The main conclusions of the study are-1. The major borrowing occurs for
consumption, 2. Source for consumption credit was friends, relatives, moneylenders
and SHGs and source of credit for agriculture was from cooperative society and in
few cases it was the trader who also bought the farm produce. 3. Villagers preferred
friends and relative due to easy access and less interest. Long period credit was
sought from banks and cooperative society, however their access was not all that
easy. Moneylender was preferred only because of easy access. The study also notes
financial institutions were lacking in their rural orientation and villagers were not able
to get adequate credit from these institutions. As a result the share of informal credit
still remained high.

9. Village Research Paper: Study of micro credit programme run by Nava Bharat
Jagruti Kendra (NBJK) with special reference to women empowerment (2003)

Participant: Shekhar Kumar Sinha (2002-2004)

Host Organization: Nava Bharat Jagruti Kendra, Jharkand
Faculty Guide: Prof. Prabel K. Sen

Abstract: The study was conducted in Pauta Tilaiva and Turaon villages of
Jharkand. The main objective of the study were- to study the micro credit delivery
mechanisms NBJK, study the functioning of SHGs and specifically understand the
problems faced in initiating SHGs and running them successfully. The other objective
of the study was to look at economic empowerment of women who were part of the
SHGs in these villages. In these three villages seven 7 SHG were studied. As the
study was of exploratory nature, the emphasis was on understanding different
characteristics of the SHGs. The basic characteristics looked as part of the study
were- age of the group, literacy levels within the group and homogeneity factors
within the group. The study found that there was marked difference in the functioning
of SHGs across these three villages. In one village the SHGs were found to be
running successfully and there were no drop outs. On the other hand in one village
SHG were seen to be controlled by husbands of the women members. In one SHGs
the study found that it had some members who were head of the families and were
served as inspiration to keep the functioning of the group vibrant. The study also
looked at the financial transactions of these SHGs and notes that the monthly
savings were Rs.20 to 25. The internal lending was at the rate of 2 to 3 percent
interest per month. The study also found a rule in SHG of charging 4 percent interest
rate per month to non-members. The local moneylender rate was 10 percent per
month. With regard to the repayment performance, the study found that the
repayment rate was 100 percent in two villages and in one village there were cases
of defaults in SHGs. In case of delay in repayments, it was found that SHGs
discussed the reasons of delay and if necessary approved extension of installments.

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With regard to the question of women’s empowerment, the study notes that women
still had the mind set that men were better decision makers on economic and
social issues. The study also notes that women’s empowerment was not the
basis of group formation. The study did not find any significant effect of SHG
on women’s empowerment as women were still not participating in financial
decisions of the family. The study recommends these SHGs should take up
some income generation activities. Capacity building should be another area
the promoting NGO needed to look into.

10. Village Research Paper: SHG formation and awareness (2003)

Participants: Rohit Mandhotra and Shilpa Bhan, (2002-2004)

Host Organization: Allahabad District Milk Producer’s Cooperative Union (Parag
Dairy), Uttar Pradesh (UP)
Faculty Guide: Prof. H S Shylendra

Abstract: The study covered SHGs promoted by DRDA and UP-DASP project in and
around of villages where the researchers were stationed for their field work. The
study was based in Koshambi district of UP and covered SHGs functioning in seven
villages. Personal interviews and focus group discussions were held with individual
SHG members and groups respectively. The main objective of the study were: to
understand the micro-enterprise in terms of their constitution and functioning and
viability of their financial activities, to examine the linkages of other institutions in the
village such as the bank, Panchayat and the dairy cooperative with the SHGs and to
compare between the theoretical model and practical nature of SHGs in terms of
saving, borrowing, inter loaning , membership, group size etc.

The study covered 7 groups functioning in the area under the study. Five groups
belonged to UP-DASP project and two groups were under SGSY-DRDA project. The
study assessed the functioning of the groups in these two projects visa-vi the
standards established for group functioning such as homogeneity, cohesiveness,
leadership development , trust etc. Overall the study found that groups in the UP-
DASP project were better dedicated to make the SHG functional. Even with regard to
functioning like regularity in meeting, book keeping, attendance in meetings etc- the
study found that the UP-DASP project groups were more systematic and vibrant in
their functioning than the SGSY groups.

With regard to financial aspects like regularity of savings, amount of saving, inter
group loaning etc. the study found the UP-DASP project SHG were able to manage
the transaction better than SGSY groups. With SGSY groups, savings and internal
loaning was a false exercise just to make the groups eligible to avail the subsidized
credit from the banks. As the SGSY groups were exclusively for the Below Poverty
Line households, these SHGs found it difficult to mobilize adequate and regular
savings. Given these functional status, the SGSY groups did not have any impact on
the functioning of the moneylender but the SHG under UP-DASP project were able to
reduce the dependence on moneylender due to availability of cheaper credit from
SHGs. The banks also considered these SHG better compared to other villages. The
study also found malpractices within the SGSY SHGs with resorting to fake records.
The study found the repayment rate good in both the category of SHGs. The study
also looked at few income generation activities closely to understand the economics
of its functioning. In case of SHG involvement in other developmental activities, the
study notes that UP-DASP project SHG have been able to undertake some activities
like setting up farmers interest groups, setting up of Kisan library etc. The SGSY
have not been able to take up any major developmental activity. The SGSY groups

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being from BPL families, could take up activity of teaching its members as it involves
only time cost and does not need much input cost. The study also found positive
changes in the status of women from SHG of UP-DASP project due to their
involvement in SHGs. With regard to NGO, the study notes that the main problems
faced by it are with respect to motivating women to increase their participation and
forming effective linkages with banks. The study concludes that there is a huge gap
between what is theoretically proposed and what is implemented and the status of
functioning of SHGs. With SGSY groups the main motive appears to be getting the
subsidy. In comparison UP-DASP groups appear to have vision to become self
reliant groups.

11. Village Research Paper: Income generation and expenditure pattern in a village
community and its impact on saving and investment behaviour (2004)

Participants: Rajpreet Kaur and Navneet Jalan, (2003-2005)

Host Organization: Aga Khan Health Service. Gujarat
Faculty Guide: Prof. Arvind Gupta

Abstract: The study was carried out in two villages, Muliasa and Chitravad located in
Talala and Keshod block of Junagad district of Gujarat State. The objective
were to assess income generation and expenditure patterns in a village
community and their impact on saving and investment behaviour. The study
adopted a stratified non random sampling method and selected sample of 39
across the categories of households that belonged to large farmers, small
farmers, wage laborers and others. The main limitations were: reluctance of
respondents to divulge accurate information, good rains during the period of
study resulting high returns to the farmers, which may not be the case for a
normal year. The study notes that due to these limitations it would be difficult
to generalize the findings over space and time. The study mainly analyzed the
income generation process, the expenditure pattern and the savings and
investment behaviour. The study notes that the main income in the
community was from agriculture and agri- related activities. Hence, the level
of incomes was closely associated with vagaries of monsoon. The study
found that children by age 13 were initiated into income generation activities.
The study notes that women, even if they participated in the income
generation did not have control over the income earned. The exception to this
status was women who are involved in daily wage labor. The study notes that
the flow of income was not regular across households- for farmers it was
usually twice in a year after harvest. Revenues was also derived from sale of
milk. Lack of transport facilities was a big hindrance rendering many IGAs
unviable. With respect to expenditure the study found that maximum
expenditure was incurred by households on food, followed by other
expenditures such as tobacco, electricity, etc. Further, the decisions of
expenditure were solely made by male members of the family. The study also
found credit from shopkeepers was used for satisfying the immediate
consumption needs. With regard to savings the study found that preference of
liquidity governed the choice of saving source. Mostly it was the banks, post
office, relatives and friends. The main motivational factors for savings were
for meeting exigencies and other expenditures like marriage. With regard to
investment behaviour the study notes that farmers were able to invest
whereas wage laborers it was very negligible. Further, the villagers were
averse to making risky investments since their income itself depends upon
vagaries of monsoon. The study also notes that lack of information of
investment avenues also restricted the choice of investments.

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The study recommends Government interventions in the area of irrigation and
facilitating transport for ease in marketing. For development agencies, the main
recommendation is to work with wager earners in the village and impart skills in IGA
that are not dependent solely on monsoon.

12. Village Research Paper: Demand and supply of financial services among rural
househol's: A comparative study of two tribal villages in Rajsthan (2004)

Participants: Ankur Shandilya and Raman Jain (2003-2005)

Host Organization: Foundation for ecological security, Rajasthan
Faculty Guide: Prof. H S Shylendra

Abstract: The main objectives of the study were to analyse the causes affecting the
demand and supply of financial services, analyse different sources of financial
services, analyse its uses and analyse the degree of institutionalization of financial
services. The study was conducted in Magra and Karech villages situated in Udaipur
district of Rajasthan. The study used both primary and secondary data. In the first
village the sample size was 45 out of the total population of 211 people. In the
second village entire population of 56 was covered under the study. The study found
that savings are either in the form of cash or converted to some physical asset such
as jewelry , grains or livestock. The savings in both the villages were low as for past
ten years the villages faced a grim drought situation. During the year of the study due
to good rains the community members were able to save some amount. The study
correlated the land holding with the level of savings and found that farmers in the
medium category were able to save less as compared to marginal and small farmers
in both the villages. The study also found absence of formal financial institutions to
tap the savings of the poor and thus poor depend on traditional forms of savings such
as jewelry. In terms of credit, the study found that since the agriculture in both the
villages was at a subsistence level using traditional means of production, there was
not much demand for credit for agricultural purposes. Even there was hardly any
demand for other income generation activities due to absence of such activities. The
main demand for credit was for consumption and for unproductive purposes.
Shopkeeper who supplied goods on credit were the agency for such type of credit.
The study notes an imputed interest rate of 40 percent was charged by the
shopkeepers. The moneylenders charge an interest rate of around 60 to 120 percent
per annum. In terms of insurance the study found practices in these tribal villages
where the community as a whole contributed either in cash or kind to bear the
expenses for funeral or marriage. Jewelry was also used as an investment /insurance
against the vagaries of life. However, the study found complete lack of institutional
insurance penetration in these villages. The study notes that overall the informal
structures such as moneylenders, shopkeepers, relatives were playing a more
important role in servicing the financial needs than the formal institutions such as
banks, post offices, LIC etc.

13. Village Research Paper: Demand and supply of financial services among rural
households - A study in Katrasa village of Maliya taluka of Junagarh District of
Gujarat (2004)

Participant: Rajat Singhal and Anoop Mor, (2003-2005)

Host Organization: Aga Khan Health Service, Gujarat
Faculty Guide: Prof. H S Shylendra

Abstract: The study was based in Katrasa village of Maliya block of Junagarh
District of Gujarat. The main objectives of the study were to understanding the
demand for financial services by rural households, to study the various financial

96
providers working and examine the gaps between demand and supply. The study
was based on field level observations, group discussions, survey and unstructured
interviews. Secondary data was collected from village level organizations. A sample
of 52 households from the total population of 208 household was drawn using
stratified non random sampling. The population was stratified according to the land
holding size of the households. The study found that all the sample households
resorted to savings. All of them saved in cash at home. Except the landless, majority
also used banks to save money. There was also practice of keeping savings with the
traders. The main reasons for saving were- for cushion against the contingencies like
death, illness and draught. Further, safety of savings was more important than
interest rate on savings. The other important finding was that all respondents stated
that they needed credit indicating that there was a demand for credit in the village.
The loans needed were for both consumption and productive purposes. The majority
of landless wage earners, wanted credit for productive purpose like buying some
productive asset to increase the income. Marginal farmers needed long term credit
for productive purpose. Large farmers and more than half of small farmers wanted
credit from formal channel for purchasing consumer durables/assets for consumption
purposes.

14. Village Research Paper: A study on the structure and operations of formal and
informal rural credit systems (2004)

Participant: Mahim Mishra, (2003-2005)

Host Organization: Foundation for Ecological Security, Rajasthan
Faculty Guide: Prof. Sheilesh Gandhi

Abstract: The study was conducted in Karech village in Udaipur district of

Rajasthan. The major objectives of the study were to understand characteristics of
formal and informal credit in the village, relationship between livelihood and pattern of
credit and the reasons of dependence on villagers from weaker section on informal
credit. The study notes that the entire sample of 45 households reported accessing
credit in the year 2003 of which 91 percent reported an outstanding loan. Out of this
loan 40 percent came from formal credit institutions and 60 percent from informal
sources. The main findings of the study were- 1. informal credit institutions continued
to be the major sources of credit in the villages 2. the role of formal credit sources
was complementary to the informal sources and formal sources were used for
productive purposes whereas informal sources were accessed to meet the
consumption needs. 3.credit formed a major element of the livelihood of the rural
households in the village. The study gives following suggestions- 1. Need to promote
SHG and a process of using social collateral and link these SHGs with the banks 2.
Need to encourage savings instead of wasteful expenditure- like on liquor. 3. Need to
promote proper marketing of the produce as the shopkeepers who also function as
moneylenders exploit the farmers by buying the produce at a low rates and earns a
hefty profit. Increase awareness of governmental schemes for improving the
employment status.

15. Village Research Paper: An in-depth study of SHGs in the villages (2004)

Participants: Jitendra Nayak, Sushant Kumar Tripathy, (2003-2005)

Host Organization: Gram Vikas, Orrisa
Faculty Guide: Prof. Sheilesh Gandhi

Abstract: The main objective of this study were - to study the process of formation
and functioning of SHG in the village, do a comparison of two SHGs and assess the
impact of SHG operating in the village. The study was conducted in two villages,

97
Dedgaon and Chhantranga located in Bolangir district of Orrisa. The study was
carried out through informal and focused group discussions with group members,
cluster and federation leaders. Discussions were also held with key informants in the
village and male members related to women SHG members. Discussions were held
with NGO staff and the secondary data from annual reports and case studies was
also reviewed. This exploratory study focused on understanding the structure of
SHGs, it main features in terms of caste composition and rules, processes of
meetings, process of leadership development, saving and credit mechanisms and
bank linkages. The study notes that in the area of women’s empowerment, the
process of SHG has been able to address some of the practical gender needs. Such
as availability of credit in distress, saving mechanism and SHG also provided help
during illness. However, with regard to strategic gender needs , the study notes that
it is by far restricted to leaders only and had not percolated to other women members
of SHG. Visibility of women in public domain, awareness of rights and use of legal
wing was found lacking across women in these SHGs. The study also notes
economic impact of SHGs and the problems faced by these SHGs in
operationalization. Some of the suggestions given by the study are- form SHG of
mixed caste groups as it has been found to work better. The study also suggests
more emphasis on capacity and leadership development in SHGs.

16. Village Research Paper: Income generation and expenditure pattern in the
village community and their impact on savings and investment behaviour (2004)

Participant: Ashutosh Kumar, (2003-2005)

Host Organization: Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd, Bihar
Faculty Guide: Prof. Arvind Gupta

Abstract: The main objective of the study were 1) to collect data on income,
expenditure, saving and investment during the year 2002-03, 2) to understand the
pattern of surplus generation and its utilization, 3) to identify saving propensity of
different categories of households of village community and 4) to study the
demographic and socio-economic characteristics of the community that are likely to
influence the saving and investment behaviour. The study was conducted in
Dharampur village situated in Vaishali district of Bihar. The village had a population
of around 3000. For the study, a sample of 60 households was chosen based on
categories of their income as indicated in the voters list and through discussions with
village elders. The study attempted to calculate the income, expenditure, investment
and saving of these household in the village. In the beginning of the report the
definitions of how these variables are calculated is given. The gross income is
calculated after deducting the cost and depreciation. Investments are based on
investments in physical and financial assets and consumer durables. Household
savings are calculated based on balance sheet method where savings are taken to
be changes in physical/financial assets less changes in liabilities adjusted for net
capital transfer and capital gains. The study found that agriculture continued to be the
most important source of income where as income from business, crafts and
profession account only for 6 percent of the total income. Around 11 percent of the
income came from net inflows of current transfers from people who have migrated.
With regard to expenditure, the total expenditure was Rs.32.20 lacs. The highest
spending was by self employed farmers followed by wage earners. Across all the
categories of people from different income brackets within the sample, expenditure
on agriculture, allied activities and livestock constituted the main expenditure. With
regard to investments and savings, the study calculated and found the level and
proportion of investment and savings of the sample households from different
categories like occupation, income class, educational status and number of earners
in the family.

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The study concludes that main source of income in the village was from household
farming, increase in income also increased the level of income saved and educated
were investing more in building property and aged prefer investment is land property.

17. Village Research Paper: Empowerment of women through self-help

groups(2004)

Participants: Kiran Kumar Puttah and PS Kiran Kumar, (2003-2005)

Host Organization: BYRRAJU Foundation, Andhra Pradesh (A.P.)
Faculty Guide: Prof. Smita Mishra Panda

Abstract: The study was conducted in two villages, Buddam and Khazipalem in
Andhra Pradesh with the following objectives. To study the status of women and the
impact of SHG in empowering women. The study uses various empowerment
frameworks from the literature on gender issues and adopted a conceptual
framework referring to these frameworks for the study. Semi-structured interviews,
unstructured discussions and PRA were used for the study. The various tools used in
discussion with the stakeholders were daily activity scheduling, mobility mapping,
timeline series, Chapatti diagram, community problem analysis, happiness mapping,
and decision making matrix. The sampling plan was stratified based on the castes in
these villages. A sample of 25 SHG members was selected in each village using
random sampling. Care was taken that each caste is represented in the sample. A
control group of 25 non-SHG members was also selected as one of the objective of
the study was also to assess the impact of SHG in empowering women. With regard
to the first objective, i.e. status of women. the study found that anemia was
predominant among women in these villages, girls were married of at very early
age, women however were aware of family planning methods and majority was using
it, malnutrition and under nutrition was common, level of enrolment in school was
almost 100 percent and literacy levels were 52 and 73 percent for women in these
two villages,. With regard to employment the study found women had heavy
workload, there was differential wage rate for women and men as men got around
Rs.70 and women got only Rs.30, a new system of contacts was initiated in the
villages to overcome the wage differential, and women in these villages had very few
opportunities to take up alternative income generation activities. The study also found
villages had practices of dowry. In terms of discrimination, the study found that it was
more on the grounds of economic status than caste. In terms of political participation
of women, the study found that though there were women in the Panchayat, it was
unofficially controlled by the men from the women’s families. With regard to
empowerment of women members in SHG visa-vi the non members, the study found
that in terms of food distribution, malnutrition and literacy levels, the status of SHG
members was better than the non members. The study also notes that SHG
members had better access to husbands labour (ex. Agriculture) than the non
members. Women SHG members were also taking up more non traditional tasks
and there was increased mobility in women SHG members than non members. With
respect to women’s control over reproduction, the study found that SHG members
had greater say than non members. In the process of empowerment, SHG members
were also active at the collective /community level. The study found that there was
not much of difference in levels of income between the sample and the control group.
The main intermediation that the SHG had done was making credit available to
women. The credit wass used for both consumption and productive purposes.
However, the study found that majority of the SHG members were continuing in the
SHG just because of some free benefits available from the government.

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18. Village Research Paper: Current Challenges and Problems of Micro Finance
based poverty alleviation programmes in Andhra Pradesh Villages(2005)

Participants: V. S. Ravi Kumar Tadimalla and Somanadha Babu, (2004-2006)

Host Organization: Akshara, Andhra Pradesh (AP)
Faculty Guide: Prof. HS Shylendra

Abstract: The study was conducted in two villages, Deshmukhi and Vankamamidi in
Nalgonda district of AP. The main objective of this study was to profile the
different microfinance interventions in the village and identify problems
associated and challenges faced by the intervening organization. The data
for the study was collected both from primary and secondary sources. The
study attempted to identify problems faced in the entire intervention at the
SHG level, federation level, bank level and implementing organization level.
The problems at the SHG level were identified by using a
framework/parameters of grading suggested by MYRADA. The main
problems identified at the group level were – ignorance of most of the SHG
members about the mission and the goal of their group, problems in
identifying groups with homogeneous membership in terms of income levels
and community affiliations, savings were regular but groups were poor in
credit take off, and problems related to book keeping of the group
transactions. The study also found the level of participation of group
members in decision making and responsibility sharing was average. In
terms of internal loans, the study notes that level of loans was minimal and
the groups followed the practice of withdrawing savings in case of some
expenditure like festivals or beginning of a cropping season. The other
associated problems were high level of illiteracy and lack of efforts in
capacity building of group members. The main problems identified lack of
interest of federations in carrying out monitoring and evaluation, The other
problems were lack of common understanding about the federation among
members, additional burden on women, especially on leaders of attending
several meetings etc. At the organization level, the study found problems
related to heavy workload on staff , corruption and lack of effective MIS to
handle the records of nearly three million members of SHG. Apart from this
the study also has identified other broader problems related to the
functioning of the microfinance operations. The study recommends adoption
of a four pronged approach of increasing income and employment,
diversification to minimize risks involved in livelihood, improving productivity
by enhanced skills and knowledge and providing effective links for
marketing.

19. Village Research Paper: A study of Velugu and world vision SHGs in
Mahbubnagar and Nalgonda Districts of Andhra Pradesh (2005)

Participants: B. Kanti Kiran and Lokesh, (2004-2006)

Host Organization: Velugu and World Vision, Andhra Pradesh (AP)

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Faculty Guide: Prof. HS Shylendra

Abstract: The study was conducted in two villages, Gantlavelly and Indriyal of
Mehabubnagar district of Andhra Pradesh (AP). The main objectives of the study
were to study different microfinance interventions in the village and the problems
and challenges associated with it and to analyse the problems of microfinance
provider and suggest possible changes to overcome the challenge. The study
was based on both primary and secondary data and the data was triangulated
using transect walk, unstructured interviews and cross tallying of the same data
provided by different sources. The study covered the microfinance interventions
of SERP under the programme Velagu in the two villages and the programme of
world vision India in one of the study villages. In the beginning of the report, the
structure , design and the purpose of these programmes is given in detail. The
study also looked at the functioning and performance of SHGs in these two
projects. The study found that SHGs provided a social platform for women and
women had started doing many non traditional tasks. The study also found that
the awareness level of SHG members regarding government schemes was
more than non members. The level of decision making power with women about
their reproductive rights was also found more in SHG women members. The
study found that the income levels did not show much of a difference than that of
non-members. The caste discriminations and economic out castings had not
decreased even after joining SHG. The study found many problems in smooth
functioning of these microfinance programmes. At the beneficiaries level high
level of illiteracy and poverty and at the level of the organization the problems
were related to corruptions, bureaucratic procedures etc. The study suggests
emphasis in the future should be on generating awareness and educate
specifically on issues related to microfinance. Proper training is also a must. The
study also recommends emphasis on research and monitoring.

20. Village Research Paper: Impact of Self Help Groups on Rural Livelihoods
(2005)

Participants: Vishwasree Boga and Bhanu Shyam Nakka, (2004-2006)

Host Organization: AKSHARA, Andhra Pradesh (AP)
Faculty Guide: Prof. BN Hiremath

Abstract : The study was done in two villages, Papireddyguda in Mehabubnagar

district and Vankamamidi of Nalgonda district of Andhra Pradesh(AP). Data was
gathered from both primary and secondary sources. The main objectives of the study
were to understand the concept of SHG and livelihood framework and to study the
impact of SHG on rural livelihoods. Convenient sampling was used. Semi structured
interviews were held with 30 women from different SHGs. 12 women were
interviewed in depth for case studies. The study found that SHGs contributed to
women’s empowerment and had made considerable effect on different spheres of
livelihoods. SHGs not only helped in providing alternative sources of livelihood but
also helped in reducing the dependence on moneylenders. The study found that at
the household level, following changes had occurred: increased expenditure on food
and clothing among poor households, increased awareness on health issues, no
special inputs were given on education but in spite of that awareness level and
management skills of women had increased, employment for some members had
also improved. At the individual level there was increased confidence and mobility
among women SHG members. At the community level the effect of SHG was in
reducing the dependence on moneylender and change in status of SC women as in
the meetings everybody was given equal importance. There was also increased
feeling of unity among women. In terms of negative impact, the study notes that it

101
was due to conflict in the OBC and SC community over the construction of a meeting
place for SHG and non repayment of project loans by some SHGs rendering other
eligible groups ineffective to borrow. The study recommends more coverage of poor
and equitable access to loans, co-option of elderly women who cannot save in the
groups, mainstreaming of caste equity within groups, working with men and to
building linkages with social movements unions and gender aware NGOs as well as
with state agencies.

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21. Village Research Paper: Transparency and overall working of the Swarnjayanti
Gram Swarozgar Yojana (SGSY) including an appraisal of the role played by PRIs,
Block-level Government Officials and Bank functionaries (2005)

Participant: Abadhesh Rusia, (2004-2006)

Host Organization: Arthik Anusandhan Kendra, Uttar Pradesh (UP)
Faculty Guide: Prof. Prabal Kumar Sen

Abstract: The basic objective of this study was to make an overall assessment of
implementation of SGSY scheme at the grass root level- i.e. at the village level. Thus
the study attempted to assess the overall functioning of the scheme in terms of role
of different agencies, transparency in implementation, awareness levels of
entrepreneurs, marketing support provided to Swarozagaries and other qualitative
aspects like selection of beneficiaries, viability of activities etc. Interactions were held
with SHG members, NGO staff and the government staff involved in implementation
of the scheme. The study was conducted in Halia block and the basic criteria of
selecting groups under the study was the groups that were at the level of activity
stage and had started some business and the groups were within 15 KMS range
from the place where the researchers stayed under the field work segment. Six
groups from six different villages out of the total 32 groups that were at the activity
stage were selected for the study. The study assessed the implementation and status
of SGSY scheme visa-vi the scheme guidelines that specify selection of
beneficiaries, process of group formation and nurturing, role of different agencies etc.
The major findings from the study were - lack of awareness amongst the
beneficiaries about the details of the scheme such as the process of back ended
subsidy and requirement of gestation period in the project. The study also found
wrong selection of beneficiaries under the scheme. The study suggests
improvement in coordination, selection of good reputed NGOs for implementation,
involvement of banks from the beginning and incentive to employees based on their
contribution in implementation of the scheme.

22. Village Research Paper: Current challenges & problems of micro finance
intervention (2005)

Participants: Nitin Gupta and Umanath Mishra, (2004-2006)

Host Organization: Centre for youth and social development (CYSD), Orrisa
Faculty Guide: Prof. HS Shylendra

Abstract: The study was conducted in two villages, Kantidiha and Sonaposi in
Keonjhar district of Orissa. The main objective was to understand various
microfinance interventions and to understand the challenges and problems involved
at the institutional and individual level. The study was conducted using PRA,
interviews and secondary data. Interactions were held with bank managers, SHG and
federation members, block development officer and officials of CYSD. The main
problems of the bank were ; inability of groups to mobilize loan, laxity in monitoring
due to staff shortage, corrupt practices adopted by block development officer, need
of heavy paper work and lack of training by NGO to SHGs. The researchers
observed that in banks there was rigidity and lack of innovation, office oriented
approach rather than working in the field, delayed decision making, lack of motivation
and inability to adopt to the situation and rigid interest rates. With regard to
implementing NGOs the study notes challenges with regard to donor agencies,
SHGs and NGO staff. CYSD also launched an MFI by registering a company under
section 25. The study analysed the major reasons for transforming into a MFI. With
regard to SHG, the major challenges noted are lack of ownership, improper selection
of leaders, absence of second line leadership, willful defaults, lack of peer pressure

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etc. The study also analysed the challenges related to functioning of income
generation activities and notes that lack of irrigation facilities, lack of good
transportation , slack in marketing and absence of risk taking abilities in people were
the major challenges. The study concludes that the microfinance in these villages
was supply driven due to the targets given to governmental agencies. NGOs were
finding it difficult to shift from its grant based role to microfinance provider. The other
challenges were lack of good products, lack of participation and lack of clarity about
the organizations and its purpose among different stakeholders.

23. Village Research Paper: Study of the Credit System(formal and informal)and
placing SHG in it (2005)

Participant: Rohit Garg, (2004-2006)

Host Organization: PRADAN, Madhya Pradesh (MP)
Faculty Guide: Prof. Prabal Kumar Sen

Abstract: The main objective of the study were to understand the financial condition
of tribal’s, to know the role played by credit, to see the functioning and utility of
various institutions , to understand the characteristics of formal and informal credit
systems in the village and to understand SHG working and its importance. The study
was based on data from both primary and secondary sources. The primary data was
collected through structured interviews, PRA, FGD and observations. The secondary
data was collected from NGO files and account books of SHG. The study used a
judgmental sampling and selected a sample of 40 households. The study was
conducted in three hamlets of the village Sarastalaiya of Hoshangabad district of
Madhay Pradesh. The judgmental sampling was based on caste as the hamlets in
these villages were concentrated on the basis of caste. The study concludes that
formal credit system had not made any inroads into these villages. The villagers were
not even familiar with schemes available to them. Informal system charged high rates
of interest and exploited. However, SHG had proved to be very useful in providing
cheap source of credit. Bank linkage was a step towards making formal channel
enter rural finance in these villages. The study suggest initiating suitable income
generation to keep members motivated and ensuring smooth functioning of the
group.

24. Village Research Paper: Scope and prospects of evolving an insurance product
by the Village Welfare Society as a Micro Finance Institution (2005)

Participants: Ravi Chandra and Shahid Ahmad Khan, (2004-2006)

Host Organization: Village welfare society, West Bengal (WB)
Faculty Guide: Prof. Prabal Kumar Sen

Abstract: The study was conducted in two villages Munscirchaat and Bargachia of
Howrah district of West Bengal. The main objectives of the study were to find out
what kind of insurance product was required, to find whether it related to life or
general insurance and to explore the scope and prospect of evolving the insurance
product. The sample size was 100 members from 20 SHGs out of the total population
of 308 SHGs of the village welfare society. The study carried out a needs
assessment with the sample to assess their awareness of insurance provision. The
study found the level of awareness regarding health insurance was quite high,
whereas with regard to health insurance, asset and crop insurance products it was
very low. With regard to participation, the study notes that it was high in the case of
life insurance as the scheme was linked to availing of loan facilities. The need of
health insurance apart from life insurance was also high. This need was felt as
expenditure on health resulted in losses. Further due to ill health the members were

104
not able to work and had to loose their income. Need of asset insurance was not
high. The study also assessed the major health problems in these villages through
discussions with the PHC and private doctors. The study notes that the major health
problems were related to lack of good hygiene. The study also assessed the pattern
of health expenditure (for one year based on recall), the income profile of the sample
members and their willingness to pay premium. As part of the study, the various
health insurance schemes in operations by different agencies like SEWA, Aga Khan
health services etc were reviewed to suggest an insurance scheme for VWS. The
study based on its needs assessment and review of various health insurance
schemes in operation proposes two models of health insurance scheme for VWS
consideration. 1. partner agent model and 2. provider model. The study concludes
that health insurance for the poor is viable under certain assumptions and it can have
a positive effects on economic and social situation of the members. However, the
study also concludes that microfinance institutions undertaking micro-insurance
cannot be the sole solutions to manage the health risks of the area and role of
external financial support (such as government subsidies, donor funding, re-
insurance needs) need to be explored.

25. Village Research Paper: Critical appraisal of savings and credit products
evolved by Village Welfare Society in its conduct as a Micro Finance Institution
(2005)

Participants: Samrat Mazumdar and Kausik Kumar Chakraborty, (2004-2006)

Host Organization: Village welfare society (VWS), West Bengal (WB)
Faculty Guide: Prof. Prabal Kumar Sen

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Abstract: The study was conducted in two villages Munscirchaat and Bargachia of
Howrah district of West Bengal. The study undertook a comprehensive
evaluation of the credit and saving scheme of the microfinance operations of
VWS. The evaluation was in the context of the mission and vision of VWS.
The study also assessed how the microfinance products viewed by the
target members and the viability of the activities in accomplishing the
organizational goals. For selecting the sample for members, a systematic
random sampling was used and for non members stratified random
sampling was used based on the occupation. The study first reviewed the
various loan products in practice. Such as general loans, housing loans,
consumption loans etc. The study then made a comparative analyses of
the saving and credit products based on eleven different parameters. These
members in the sample were asked to give score on these parameters on a
scale of four. The study notes that general SHG credit was well accepted
and was popular. Consumer loans also got the maximum score indicating it
was very useful to the members. Bank credit was found not to be very
popular among the poor. The biggest obstacle in availing bank credit was
the need of a collateral and many hassles involved in accessing the loan.
The study notes that the dependence on money lenders was reducing in the
villages under the study. The study also did a critical appraisal of the credit
products in terms of interest rates charged, level of transparency in delivery,
necessity of savings, flexibility in repayments and imposition of conditionality
on use of credit. The study in its evaluation of the organisation notes that the
membership in the organisation grew at the rate of 24.71 percent in the last
five years. Interestingly, the study found a sharp increase of 67.5 percent
rise in membership during the short period of April to December 2004. The
study attributes this to the popularity microfinance products were gaining in
the villages. In terms of borrowing, the average loan outstanding grew by
30.28 percent in last five years. The study notes that portfolio at risk (PAR)
was low indicating good performance and low level of default. In terms of
impact on the members the study found that members who have availed
credit facilities were able to increase their level of incomes, the interest and
level of education was going up, there was increased expenditure on health
due to availability of money, there was more emphasis on better sanitation
and regular saving among members.

26. Village Research Paper: Current issues and Challenges in Microfinance

Interventions": A study of the SHGs of Sampada Trust in the Ahmednagar District
(2005)

Participants: Anant Jayant Natu and Neeraj Kumar Lal, (2004-2006)

Host Organization: Sampada Trust- WOTR, Maharashtra
Faculty Guide: Prof. HS Shylendra

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Abstract: The main objectives of the study were to understand process of
microfinance at the village level, identify the problems in delivery, analyse
the challenges at macro level and explore solutions. The study was
conducted in two villages, Pangra and Pirewadi of Beed and Ahemadnagar
district of Maharashtra respectively. 80 households were covered under the
survey that assessed credit profile of these households. Along with this,
data was collected from accounts books of SHG and through PRA. At the
organizational level, the study identified challenges such as – lack of legal
framework for microfinance operations, poor bank linkages, politics of
populism such as governmental doles acting against the microfinance
effectiveness, paucity of manpower etc. The study did an in-depth analysis
of SHG functioning in the two villages. The study assessed the functioning
of the SHG by looking at issues in formation, functional issues,
administration level issues. The study concludes that there was no apparent
effort from women to make the SHG function effectively. The main reason
for the apathy was the low stakes perceived by them. The study also found
lack of leadership to take the program forward. SHG was not indispensable
as it could meet only small credit required for consumption and not for the
need that required high investment. Migration had the most disruptive effect
on the functioning of SHGs in these two villages. At the organizational level,
the study found lack of clarity regarding the goal of the programme as
whether it was poverty reduction or women’s empowerment. For the
implementing organisation, the study recommends probing the area to
assess loan needs, designing loan products to facilitate migration as the
migration happened to be a phenomenon that cannot be stopped easily and
formation of male youth SHGs for promoting sustainable businesses among
them. The study also recommends changes in area assessment survey of
the organisation to include assessment of industrial base and exploring the
scope for linkages of the village community with such industries.

27. Village Research Paper : Contribution of Credit and Non-Credit Inputs In

National Rural Employment Generation Programmes(2005)

Participants: Anukul Prasad Sahoo and Swadhin Guru (2005-2007)

Host Organisation: People’s Rural Education Movement (P.R.E.M.)
Faculty Guide: Prof. Prabal K. Sen

Abstract: The main objectives of the paper was: 1. To understand the economic
condition of tribals in rural India with particular reference to their employment status,
2. To study the impact of the national rural employment generation programmes on
the employment situation of the sampled households, 3. To access the functioning of
agencies providing / facilitating credit inputs and non credit inputs and 4. To suggest
ways and means for addressing the problems identified in regard to the functioning of
agencies providing credit and non credit inputs.

For the purpose of the theme paper, we confined our study to Kintesingh and Paleri
village. Since the numbers of households in both the villages were small, we went for
complete census survey and all the families were selected for study. Household level
data collection was done using the structured questionnaire given by IRMA. Data
were collected from Government officials, Panchayat functionaries operating at
village and block levels, NGO involved in rural development and poverty alleviation
programmes through semi-structured oral questionnaire. Group discussions were
held with beneficiaries and non-beneficiaries separately at the village level using
semi-structured oral questionnaire.

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The main findings were for for non-credit inputs were that successful wage
employment generation, mainly involving BPL families though the categorization is
questionable. The mandays of work generated are not upto the requirements. Need
based village infrastructure were constructed and the quality of work is not always
satisfactory. Implementation of the programme were done through PRIs; there is no
wage discrimination among the sexes; a minimum of 30% women were employment
and the wage rate was either Rs 50/-per manday or Rs. 17.50/- and 6.5 kgs of food
grain. Sometimes Rs.5 was deducted from wages (cited as supervisory charges) and
some portion of wages was donated to community voluntarily. No contractors were
engaged; no maintenance of muster rolls / employment register / proper records at
Panchayat and block offices (if maintained, they were not shown to us). Sign boards
were not put up at all the work sites. With regard to credit Inputs the study found that
timing of supply of inputs is not proper. Ex: Pineapple seedlings were provided at dry
season which died due to water scarcity. No forward linkages could be found in some
of the programmes and support lacks from organizations like state rural marketing
organisations (ORMAS). So income is yet to be generated from these
programmes.There is no follow up and reviews of the programmes; also proper
training and skill are not imparted. And loans were waved in dubious ways.

The paper conludes that timing of implementation of programmes should be

appropriate. Proper categorisation of BPL families so that benefits go to deserved
families. Income generating assets generated under SGSY which are lying idle
should be fully utilised. There should be proper selection of cluster activities. The
training (basic and skill based) should be imparted and infrastructure and linkages
should be in place.

28.Village Research Paper : Current challenges and problems in Microfinance: a

study in Kanse and Wada villages in Pune district of Maharashtra (2005)

Participants: Tushna Dora and Tanushree Chatterjee (2005-2007)

Host Organisation: Chaitanya, Pune, Maharashtra
Faculty Guide: Prof. H. S. Shylendra

Abstract: The objectives of our study were: To study the different kinds of
microfinance interventions existing in our villages and To identify the challenges and
issues associated with the micro finance interventions. For our study of microfinance
interventions in Kanse and Wada villages of Pune district in Maharashtra, we
selected to study Self Help Groups (SHGs), Credit Societies and Banks in our
respective villages. We studied 8 SHGs in total, and as the SHGs had not been
segregated on caste/class basis i.e. they had a heterogeneous mixture of women, we
adopted random sampling to select the SHGs for our study.

Most of the self help groups that are present in the two villages that we studied were
formed more than five to six years ago with the oldest being around eight years ago.
However, most of these groups appear to still remain in the nascent stages. The
microfinance intervention is yet to achieve most of its objectives. The most
restraining factor for the above seems to be the widespread illiteracy, especially
among the main target group i.e. the rural women. Some of the common problems
faced by these women include: Book keeping, Recovery of Loans and Loan
delinquency, Difficulty in understanding bank transactions due to lack of training to all
members and Lack of participation because of leadership dominance

Problems faced by the fieldworkers include accessibility of villages, mindset of

villagers, illiteracy, lack of participation and documentation. The banks involved feel
that SHGs are still not mature, do not use funds appropriately, have improper book

108
keeping practices and do not understand the aim of SHG formation amongst others.
Some of the other important issues that need to be addressed with respect to the
microfinance interventions include: Ideal size of the group to effectively yield peer
pressure and minimize administrative costs is still a question that has not found
answers. Sensitization of the men folk to meet the objectives better and also benefit
the intervention and The right time for the NGOs concerned to withdraw and let the
groups carry out all their activities on their own

Some of the measures that can be taken up, according to us are (keeping the hands
on experience, we had with Chaitanya and the banks, in mind and our analysis of
present situation);

• Rotation of group leaders should be encouraged. Also, not only leaders, but
also the other members should be given training and all educated members
should be encouraged to engage in book keeping.
• Strict grading to be adhered to and loan forwarding to be linked to grading.
• Capacity building and an attitudinal change of members of SHGs, leaders
(SHG as well as cluster) and field staff.
• Savings need to be converted into investments and hence providing need
based training and counselling on Income Generating Activities and other related
issues.
• Banks need to minimize the formalities the loanees have to go through and
can also help in building capacity by starting training programmes, of its own, for
members.

The success of Microfinance operations is closely linked to its sustainability. It also

depends on its ability to deliver the greatest good to those in need of it. Evolving
organizational structure to promote microfinance is an area of urgent concern. For
achieving viability in operations, the structural innovation should aim at continuous
optimization of lender transaction costs and minimizing borrower transaction costs.
Today, innovation can prove to be the corner-stone of microfinance. For this
however, there is an urgent need to create an enabling environment whereby the
microfinance movement can smoothly surge ahead with minimum possible irritants
and endeavors must be constantly made, to find out ways so as to ensure that the
promising market of micro finance does bloom to serve the poor.

29. Village Research Paper: Assessment of financial services availed by members

vis-à-vis non-members of SHGs (2005)

Participants: Hariom Gulati and Gurudatta Bhat (2005-2007)

Host Organisation: IBTADA, Alwar
Faculty Guide: Prof. Ashutosh Verma

Abstract: The study was conducted in Salpurbas and Sadoli villages of Ramgarh
Taluka of Alwar district of Rajasthan. The main objective of the study were: 1. To
study the various financial services available in the villages and to understand their
impact on members and non-memebrs of SHGs. 2. To analyse the performance of
SHG in our villages and suggest measures for improvement of the same. 3. To
examine the gap between the demand and supply of financial services and to look at
their implecations. The data was collected on savings, credit in terms of institutional
set up, interest rate sources, purposes etc. The primary source of data was collected
through interviews, focus group discussions and well being ranking. The secondary
data was collected through literature provided by the IBTADA, passbook of members
and other reports and records of village level institutions. The study covered a
sample of 40 householdes of which 20 were members of SHG and 20 were non

109
members. The sample of 40 was drawn from a total sample of 289 using stratified
non- random sampling. This covered non members and 14 memebrs of SHG. Rest of
thesample was choosen randomly. The main limitations of the study is related to the
reluctance of the non members to reveal their credit information . Further the sample
may not be true representative of the population.

30. Village Research Paper :. Assessment of financial services availed by members

vis
à vis non-members of SHGs, 2005

Participants: Shruti Chhangani and Rajnish Ranjan Prasad (2005-2007)

Host Organisation: Chaitanya
Faculty Guide: Prof. Ashutosh Verma

Abstract: The study was conducted in Manjarwadi and Shrioli village located in Pune
district of Maharshtra state. The main objectives of the study were: 1. To study the
different financial services available to SHG members and non SHG members, 2.
Comparison between different credit taken from different sources and savings in the
village. 3. To study the laon size and its utilization. The study used a mix of methods
for data collection that included both quantitative and qualitative indicators. Data was
collected from both primary and secondary sources. Sratified non random sampling
was used to get a sample from the lsit of all householes in the villages. The main
limitations of the study were: Sampling error may occur duing sampling process of
any sampling. Villagers were apprehencive about providing details of their loan, 3.
Villagers were not sure of the details of non-SHG loans.

31.Village Research Paper :. Study of financial issues of SHG, 2005

Participants: Richi Agarwal and Chandrakant Kashiram Ingole (2005-2007)

Host Organisation: Chaitanya
Faculty Guide: Prof. Ashutosh Verma

Abstract: The objectives of the study were: 1. To understand the functioning of the
SHGs, their interactions and favourable or unfavourable impact on socio-economic
settings. 2. To study and analyse various financial issues faced by the group and to
recommend possible measures for improvement, 3. To comphrehend the role of
SHG in addressing the social political issues at the village level. 4. To understand the
role of SHG in the empowerment of women, the various initiatives taken by the SHG
to achive the same, its modus operandi and results achieved. 5. To understand the
broader role the SHG can play in alleviation of poverty, its implecation on the future
of rural India. The study collected primary data from members of SHG through
informal interviews, structured interviews and focus group discussions. The
secondary data was collected from cluster and federation offices. The main
limitations of the study were: 1. Limitation of time, 2. Limited information regarding all
groups with village institutions. 3. The SHG documents had mistakes 4. The
researchers lack of understanding of local language.

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32. Village Research Paper :. Current challenges and problems of micro finance
Interven tions, 2005

Participants: Manoj Bobade (2005-2007)

Host Organisation: People’s Rural Education Movement, Orrisa
Faculty Guide: Prof. H S Shylendra

Abstract:The study was conducted in Hidikama and Gundima village in Gajapati

district of Orrisa. The main objective of the study were: To analyse the problems
faced in forming the SHG and the challenges faced in making it sustainable, keeping
the local perspective in mind and to study the microfinance intervention in the village
and identify the problem and challenges associated with this intervention at various
levels. The study covered the PREM’s microfinance interventions in the village in
terms of its scope, reach and short term and long term impact from PREM’s point of
view. The study did a assessment between these two villages. Hidikama was the
village with microfinance interventions and Gundima was village without much of
microfinance intervention. Data for the study was collected from NGO staff, SHG
members and secondary sources. The study used questionnaire, semi structured
interview, PRA tools and informal discussions with members and non members and
NGO staff to collect data for the study objectives. All the 100 householdes were
covered in Hidikama village and in Gundima village 13 householed out of 152
householdes was covered. Some of the important limitations include: Limitation of
time and difficulty in accessibility of people, the activities were still in nascent stage
and it is difficult to reach any conclusions, language barrier and lastly the study does
not deal with cluster and federation level as the data collected could not be
accommodated in the study.

33. Village Research Paper : Current challenges and problems of micro finance
Interven tions, 2005

Participants: Swati and Ashish Jha (2005-2007)

Host Organisation: Nav Bharat Jagriti Kendra (NBJK), Jharkand
Faculty Guide: Prof. H S Shylendra

Abstract: The study was conducted in the villages of Sonpura and Jinga. Sonpura is
in Itkhori block ogf Chatra district and Jinga is in Sadar block of Haziribag district of
Jharkand. The objectives of the study were: 1. To develop an in-depth understanding
of Microfinance institutions working in the rural areas, 2. To identify the problems
faced by these institutions at different levels such as organizational level, group level
and individual member level and 3. To explore the opportunities available to these
institutions. Both primary and secondary data was collected for the study. Personal
interviews, focus group discussions, household surveys and observations were used
to collect data. The samples in the village were drawn on the basis of caste and class
distribution in the village. PRA exercise was done to arrive at the sample.

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34. Village Research Paper :.Current challenges and problems of micro finance: A
study of Paranti and Kaparpura Villages in Muaffarpur district of Bihar, 2005

Participants: Rajeev Kumar and Kumar Nilabh (2005-2007)

Host Organisation: Adithi Plan- Bhihar
Faculty Guide: Prof. H S Shylendra

Abstract: The objective of the study were: To understand process of microfinance

intervention at the micro level, 2. To identify the problems faced in delivering
microfinance and 3. To analyse the problems and challenges of microfinance at the
macro level. The study was conducted in Paranti and Kaparpura Villages in
Muaffarpur district of Bihar A total of fifty five householdes were covered in these two
villages. The methodology included, household surveys, semi structured interviews,
informal discussions and closely looking at the account books to understand the
process of microfinance. The limitations of the study were related to short time
available for the study and the nascent stage of microfinance operations making it
not possible to categorically comment on the challenges and problems of
microfinance operations.

35. Village Research Paper :. SHGs as an instrument of social empowerment-

Challenges and Obstacles , 2005

Participants: Swetha Bharadwaj and Ruchi Luthra (2005-2007)

Host Organisation: Tarun Bharat Sangh
Faculty Guide: Prof. Ila Patel

Abstract:

The study was conducted in Hamirpur and Mandalvaas villages in Alwar district of
Rajasthan. The objective of the study were: 1. To study and analyse interventions
made by the SHGs for women empowerment, 2. To study the problems faced by
SHG in women empowerment and 3. To understand the formation, functioning and
dynamics of various SHGs. The study covered 40 samples in each village. Startified
sampling method was used and the attempt was to include representation from all
the castes present in the village. Data was also collected through PRA exercise like
social mapping. To understand the work pattern of women and who does what work
in the family and the community, daily activity schedules were drawn. Focused group
discussions were also held with SHG members. The researchers observations also
was part of the methodology. The secondary sources of data included, SHG records,
NGO records and records kept at Panchayat office.

36.Village Research Paper : SHGs as a tool of social empowerment of women,

2005

Participants: Shruti Sehgal and Swati Bothra (2005-2007)

Host Organisation: Chaitanya
Faculty Guide: Prof. Ila Patel

Abstract: The study was carried out in Manjarwadi and Kanse villages in Pune
district of Maharashtra. The objective of the study were: To understand the
background and basis of SHG formation as perceived by the organisation and
women themselves. 2. To understand the functioning of SHG. 3. To get insights
regarding personal, social and economic empowerment as experienced by women
through their participation in SHG and 4. To identify and understand the area in
which women sense their empowerment as individuals, as family members and a

112
part of the community. A mix of methods was used to get clearer picture of the
phenomenon. Qualitative indicators are purposefully included in the design to
understand women’s role in the society, sexual division of labour, challenging
conventions which impose restriction on women and range of other factors. The data
for the study was collected through focus group discussions, PRA tools like, mobility
mapping, time line, daily activity schedule, impact diagram, force field and analysis.
Semi structured interviews were also held. Household profiles were also collected
under the study. The secondary data was collected from Chaitanya records, SHG
and Panchayat records. The main limitations of the study were: Due to harvest
season, villagers were busy and reluctuant to give time, Especially in the initial period
of the study the respeondents were little tentative and restrained in divulging details,
study is limited to eight weeks and may not cover all aspects of SHG and
researchers lack of fluency and understanding of the spoken language may have
resulted in missing some important peieces of information.

37.Village Research Paper : Sustainability of Microfinance Interventions, 2005

Participants: Arun Kaushik and Ujwal Shankar (2005-2007)

Host Organisation: Nava Bharat Jagriti Kendra
Faculty Guide: Prof. S K Mittra

Abstract:The main objective of the study were: 1. To observe, understand and

analyse the microfinance interventions in our village from organisation as well as
villagers point of view, 2. To study the various models and product of microfinance
present in our village, 3. To analyse the sustainability of microfinance interventions
from social and economic point of view, 4. To assess the impact and scope of
microfinance interventions in the village and 5. To suggest measures to make
microfinance interventions sustainable if it is not sustainable. The study was
conducted in Daria and Harli villages in Zarkand state. The main limitation of the
study was that microfinance operations were not fully developed and only microcredit
was functional. The required authentic data to measure financial sustainability was
not available with the implementing NGO. The data for the study was covered
using both primary and secondary sources. Triangulation of data was done through
unstructured interviews and cross tallying of the same data provided by different
people and institutions.

38.Village Research Paper : Costs incurred by MFIs for micro finance schemes,
2005

Participants: Anand Prakash and Amrit Choudhary (2005-2007)

Host Organisation: Nava Bharat Jagriti Kendra
Faculty Guide: Prof. S K Mittra

Abstract: The study was conducted in Daia and Harli villages in Hazaribag district of
Zarkand. The main objective of the study was to assess the cost incurred by MFI for
their microfinance schemes. The study covered the organization Nava Bharat Jagriti
Kendra to analyse the cost inccured and developed a case study of NBJK. The study
was at the block level operations. It covered Barkhagaon and Ichak bloks of
Hazaribaug district of Jharkand. The study uses various ratios such as suatinability
ratios, porfolio quality ratios, assesst liability management ratios, efficiency and
productivity ratios to analyse the cost incurred by the MFI.

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39.Village Research Paper : Sustainability of Microfinance Interventions, 2005

Participants: Rebati Raman and Binu Jhawar (2005-2007)

Host Organisation: Nava Bharat Jagriti Kendra
Faculty Guide: Prof. S K Mittra

Abstract: The study was conducted in Domchak and Jinga villages in Zharkand
state. The main objective of the study were: 1. To understand the microfinance
interventions made in the village and its impact on the beneficiaries, 2. To
understand the various dimensions of sustainability of the MF interventions made by
NBJK 3. Effect of sustainability on the organisation and its impact on the lives of the
prople and 4. Existing challenges and opportunities to achieve sustainability of MF
interventions. The main sources of data were both primary and secondary.
Structured and unstructured interviews were also held to assess the stated
objectives. The triangulation of data was done through cross tallying of the same
data provided by different people and institutions. The main limitations of the study
were: The interventions in the two villages covered are still innascent stage, 2.
Problems in divulging the financial data has been the biggest constraint, 3. Short time
span for the study.

40.Village Research Paper :.Costs incurred by MFIs for micro finance schemes ,
2005

Participants : Manish Chandra and Vishwajeet Kumar (2005-2007)

Host Organisation: Nava Bharat Jagriti Kendra
Faculty Guide: Prof. S K Mittra

Abstract:The main objective of the study was to identify various costs incurred by
the microfinance institutions for microfinance schemes by comphrehensively
evaluating them and also to differentiate between financial and non-financial services
and allocate cost accordingly. The sources of primary data included semi structured
and structured interviews with NBJK staff, The study was conducted in Domchanch
and sonpura vilages. Domchanch is located in Koderma district of Jharkand and
sonapura is located in Itkhori blocks of Jharkand. The study using various ratios and
analyses of cost incurred by NBJK calculated the cost incurred by the MFI for its
microfinance schemes. The study calculated the cost in depth for Domchanch village
as their already was NBJKs microfinance activity in operation and there was huge
potential for increased microfinance activity in the village.

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