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

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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

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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

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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.

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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 teachingmaterial. 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.

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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

Sr. No.Student Name(s)

Title of the StudyYear of Submission

Oragnisation

1. Bipul Chand

Micro- Design of an Urban Microfinance Program for the Vendor Community in Ghatkopar and Matunga Area of Mumbai

2003 ICICI Bank, Mumbai

2.

Anshul Gupta,Apoorva Surya Deo andAtul Kumar

Design a Health Insurance Policy and Pre-Launch Market Survey

2003 HM Patel Center for Medical Care & Education Anand

3. Girish BPoverty Alleviation and Bank Finance: A Study on Violation of RBI Norms

2003

The Kudumbashree Mission,(State Poverty Alleviation Mission), Kerala.

4. Prateek Kala

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 Indo-Swiss Participative Watershed Development-Karnataka

5. Shilpa G. Competition in Micro Finance – An In –Depth Study

2004 Mahila Abhivrdhi Society, Andhra Pradesh (APMAS)

6. Ravindra Kanth

To Study the Scope and Potential of Rural Micro-Enterprises Development in the Villages of Churu District

2004

Bhoruka Charitable Trust, Rajasthan

7.Manju M. G. and Krishna K. S.

Graduating Micro Finance Entrepreneurs to Micro Finance Institutions: Analysis and Recommendations

2004

ICICI, Social Initiatives Group, Mumbai

8. K. S. Reddy Impact Study of Project Shakti

2004 Hindustan Lever Ltd., Mumbai

9. Rajiv Ranjan

Microfinance Management System: Customer Appraisal, Loan Management and Accounting and Management

2005 Shriram Social Welfare Trust, Chennai

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Sr. No.Student Name(s)

Title of the StudyYear of Submission

Oragnisation

10.

Prasoon Raghuvanshi and Deepti Ranjan Bedbak

Feasibility Study for Setting up Micro Enterprises in Villages by Rural Youth

2005

Seva Mandir, Udaipur

11. Raman Jain

Formulation of A Cost-Effective Strategic Plan for Improving the Micro-Finance Programme

2005 Action for Social Advancement (ASA), Bhopal

12. Kiran Puttah

Design for Establishment of District Livelihood Resource Center – A Revenue Model.

2005 Mahila Abhivrdhi Society, Andhra Pradesh (APMAS), Hyderabad,

13. Atul Kumar and Sandip Kumar Katiyar

Feasibility of setting up a Micro Finance institution in Jhabua

2006 Action for Social Advancement, Bhopal

14. Naveen Kumar Mallik, Kumar Amit and Kumar Prashant

A state level assessment of the microfinance sector to facilitate the strategic planning for the development of microfinance institutions  2006

FWWB, Ahmedabad

15. Gyaneshwar Ranjan and Kausik Kumar Chakraborty

West Begal: A state level assessment of the microfinance sector to facilitate the strategic planning for the development of microfinance institutions

2006 FWWB, Ahmedabad

16. Ruchi Agarwal Designing Financial Services And Systems For Rural Migrants Of South Rajasthan

2006 Aajeevika Bureau, Udaipur, Rajasthan

17. Vandana Lohia and Nitin Korepal

Urban Microfinance – Reaching urban poor through multi-level individual lending model

2006 ICICI Bank Ltd. (Alternate Channels Group), Mumbai

18. Dipi Gupta Mobilizing support for providing innovative insurance services to the poor

2006 ICICI Prudential LIC Ltd., Mumbai

19. Alok Modi, Saurabh Kumar Sinha and Amit Kumar Mishra

To study the profile and identify the High Net-Worth Individuals as potential customer for life insurance 2006

ICICI Prudential LIC Ltd., Mumbai

20. Pragna Kolli Pre-Incubation processes of microfinance institutions and road-map ahead

2006 Microfinance Group – IIM, Bangalore

21. Anshul Goyal and Prashant

Study of Credit Co-operatives for their fiscal

2006 ICICI Bank Ltd (RMAG), Mumbai

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Sr. No.Student Name(s)

Title of the StudyYear of Submission

Oragnisation

Banerjee health and their Willingness and Readiness to link with Formal Financial Institutions

22. Chaman Kumar and Umanath Mishra

Enhance rural banking & financial services coverage at the grassroot level (Ahmednagar) 2006

ICICI Bank (RMAG), Mumbai

23. Rahul Kasinadhuni and S. Sairam

Market potential for microfinance in the state of Karnataka & strategic blueprint for grameen koota for five years (2005-2010) 2006

Grameen Koota, Bangalore

24. Shahid Ahmad Khan and Chandan Batsayan

Process mapping at SKS 2006 Swayam Krishi Sangam, Hyderabad, AP

25. Samrat Mazumdar and Choudhary Ajay

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 BASIX, Hyderabad

26. Rakesh Kumar Impact of loans for alternative income generating activity under Jeevika 2006

Jeevika, SEWA

27. Narendra Singh Sonigra and Prabhat Kumar 2006

ICICI Bank (RMAG Division)

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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 AnanthFaculty 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. 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

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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 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

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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 , BangaloreReporting Officer: Mr. J.Jangal, Senior Programme Coordinator, PSMUFaculty Guide: Prof. Shiladitya Roy

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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.

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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 PradeshReporting officer: Dr. Raja ReddyFaculty 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 was collected from research studies done by APMAS, Mcril, Crisil, and Micro save

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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 membersThe 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.

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

Participant: Ravindra Kumar Kanth, (2002-2004)Organization: Bhoruka Charitable Trust, BhorugramReporting Officer: Mr. Amitabh BanerjeeFaculty 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), ICICIReporting officer: Ms. Soju Annie George, Manager, SIG Faculty guide: Prof. Shiladitya Roy

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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 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

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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 SahniFaculty 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.

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.

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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 TrustReporting Officer: Mr. M. S. AshokFaculty 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 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.

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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 KumarFaculty 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 DasFaculty Guide: Prof. Haribandhu Panda

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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, HyderabadReporting Officer: Mr. Suri Shetty Srinivas, AVP (Livelihoods)Faculty Guide: Prof. K.V. Raju

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

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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 PradeshReporting 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.

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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), AhmedabadReporting 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.

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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, AhmedabadReporting Officer : Ms. Amrita Kumari, Programme OfficerFaculty 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.

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

Participant: Ruchi Agarwal (2004-2006)Organization: Aajeevika Bureau TrustReporting Officer: Mr. Krishnavtar SharmaFaculty 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.

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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 LtdReporting 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

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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. LtdReporting Officer: Ms. Preeti MishraFaculty 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

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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, MumbaiReporting Officer: Mr. Srinivas RevanurFaculty 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

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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, BangaloreReporting Officer: Ms. Saleela PatkarFaculty 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.

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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), MumbaiReporting Officer:Mr. Ajay Desai, Chief ManagerFaculty 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.

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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 utput/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

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and other socio economic parameters of the respective blocks (c) Club crop insurance withcrop 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, BangaloreReporting Officer: Mr. Suresh . KFaculty 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.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

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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 RaoOrganization: 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.

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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

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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 KumarOrganisation: ICICI (RMAG), MumbaiReporting 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

35

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.

36

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

Sr.No. Student(s) Title of the studyYear of Submission

Oragnisation

1.Manju Mary George

Develop Monitoring System for Loan Repayment by Micro Enterprises and their Performance

2003

State Poverty Eradication Mission (SPEM) Kudumbashree, Kerala

2.

Krishna V R, Manju Mary George, Manoj Mohan Mohandas

Organisation Understanding “Kudumbashree”

3.Ajith D and Bhagirath

Micro Level Credit Requirement of Dairy Farmers

2003

Malabar Regional Co-operative Milk Producers’ Union Ltd. Kerala

4.Mathew Vilayasseril and Robin P Mathew

Income Generation Programmes to be Imitated by MRDF

5.Ajith D., Bhagirath Iyer, Mathew V, Robin P. Mathew

Organisation Understanding “Mrcmpu”

6.Hitesh Jain

SWOT Analysis of the Seafood Industry and Financial Opportunities for a Bank in the Industry

2003

ICICI Bank, Mumbai

7.Abhishek Garg, Prathibha Nair

Profiling of Agricultural Co-operatives

8.

Hitesh Jain Abhishek Garg, Prathibha Nair

Organisation Understanding “ICICI Bank Ltd.”

9.

Ms. Aakanksha Gupta, Mr. Mohit Kumar Agarwal

Documentation of Women Self Help Group Federation, ASARA in Indore, Madhya Pradesh

2003 Friends of Women’s World Banking, Ahmedabad, Gujarat

10. Vanya Sinha and Karuna Sharma

Study on Restoring Livelihood Activities in Kutch after Earthquake

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Sr.No. Student(s) Title of the studyYear of Submission

Oragnisation

11.

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

Organisation Understanding “Friends Of Women’s World Banking, India (FWWB)”

12. Sangeeta Srinivas

Developing a Quality Assessment System for Mahila Abhivruddhi Society, Andhra Pradesh (APMAS)

2003 APMAS, Hyderabad

13.

Nanabala Lavanya Kumar and Sangeeta Srinivas

Organisation Understanding “APMAS”

14.Venkata Subba Reddy G

Role of Self Help Group Federations as Financial Intermediaries

2004APMAS, Hyderabad

15.

Kiran Kumar P ,Srinadh Anne ,Subba Reddy G V

Organisation Understanding “APMAS”

16.

Suvojit Chattopadhyay and Balakrishnan Madhavankutty

Product Design for Micro Finance

2004

South Indian Federation of Fishermen Societies (SIFFS), Karamana, Traivandrum17.

Balakrishnan M, James Abraham, Jyoti Mishra, Rajesh R, Rajpreet Kaur, Suvojit Chattopadhyay

Organisation Understanding South Indian Federation of Fishermen Societies (SIFFS)

18.Nitin Srivastava and Prakash Kumar

Evaluation of Self Employment Programme for Weaker Section

2004Social Justice & Empowerment, Govt. of Gujarat, Gujarat, Gandhinagar19.

Sudha Kant, Nitin Srivastava, Prakash Kumar, Rajneesh Pankaj

Organisation Understanding “Social Justice & Empowerment, Govt. of Gujarat ”

20. Abhishek Anand Impact Assessment of Income Enhancement Activities

2004SM Sehgal Foundation, Gurgaon, Haryana

21. Abhishek Anand Organisation Understanding “SM SEHEGAL Foundation”

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Sr.No. Student(s) Title of the studyYear of Submission

Oragnisation

22.Ankur Shandilya and Joginder Ralhan

Develop Tools/Parameters to Identify Star Borrowers

2004

Grameen Koota, Bangalore

23.Arup Anand and Madhu V

Develop a Procedure For Appraising Staff Performance

24.

Ankur Shandilya, Amp Anand, Madhu V, Joginder Ralhan

Organisation Understanding “Grameen Koota”

25.Indrajit Kumar and Chandan Batsayan

Analysing the Dropouts of Micro Finance Programme

2005Grameen Koota, Bangalore

26.Naveen Kumar Malik and Mousom Mitra

Analysing the Costing of Products and Services Offered by Grameen Koota to its Clients

27.

Chandan Batsayan, Indrajit Kumar, Mousom Mitra, Naveen Kumar Mallik

Organisation Understanding “Grameen Koota”

28. Deepak Kumar Jha

Study Of MFI From Financial Management Perspectives

2005Friends of WWB, India, Ahmedabad

29.Gaurav Loomba

Product Development for Microfinance (Designing, Testing and Launching)

2005Matoshree Rampryaribai Sarda Dharmik Pratishthan, Nashik, Maharashtra

30.Gaurav Loomba

Organisation Understanding “Matoshree Rampryaribai Sarda Dharmik Pratishthan”

31.Anuj Kumar

Evaluation of The Income Enhancement Program of Sehgal Foundation in Select Villages of Mewat, Haryana

2005

S M Sehgal foundation, Gurgaon

32.Anuj Kumar ,Anjali Godyal

Organisation Understanding “S M Sehgal Foundation”

33.Alok Modi

To Study the Scope and Potential of Setting a Micro-Finance Institution.

2005Bhoruka Charitable Trust, Rajasthan34.

Alok Modi Organisation Understanding “Bhoruka Charitable Trust”

35.Mukul Kumar Singh and Shahid Ahmed Khan

Study of Organization Structure

2005

ICICI Prudential life Insurance, Mumbai.

36.Mukul Kumar Singh, Shahid Ahmad Khan

Organisation Understanding “ICICI Prudential Life Insurance”

39

Sr.No. Student(s) Title of the studyYear of Submission

Oragnisation

37.

Nitin Gupta, V. S. Ravi Kumar Tadimalla , Neeraj Kumar Lal, K Somanadha , Rohit Garg, Abinash Mahapatro

Preliminary Studies for Launching a Micro-Finance Institution

2005

Community Services Trust, Salem, Tamil Nadu

38.

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

Organisation Understanding “Community Services Trust, Salem”

39.Bhanu Shyam Nakka and Vishwashree Boga

An Indepth Study of Resource Centre of MYRADA

2005

MYRADA, Bangalore

40.Vishwasree Boga and Bhanu Shyam Nakka

Organisation Understanding “MYRADA”

40

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), KudumbashreeReporting 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 modificationsThe 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 check on the unfavourable lending practices of banks. A mandatory provision was

41

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.,KozhikodeReporting Officer: Mr. G. Selvakumar, CEO, Malabar Rural Development FoundationFaculty 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 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

42

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 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

43

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.

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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 DivisionReporting Officer: Mr. Atish M GovilFaculty 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 DesaiFaculty Guide: Professor L.K Vaswani

45

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.

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

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

46

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, GujaratReporting 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 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

47

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, GujaratReporting 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 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

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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 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.

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

Participant: Sangeeta Srinivas (2002-2004)Organization: APMASReporting Officer: Mr.C.S.Reddy/ Mr.L.B.PrakashFaculty 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. Towards this purpose, APMAS undertakes assessment of SHG Federations using a rating tool- GRADES and capacity building activities'on a fee for service basis.

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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 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.

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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, 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.

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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 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

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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 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.

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

Participants: Nitin Srivastava and Prakash Kumar, (2003-2005)Organisation : Social Justice and Empowerment DepartmentReporting Officer : Shri A S SutariaFaculty 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 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

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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. 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

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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.

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

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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 KootaReporting 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-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.

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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 KootaFaculty 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 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.

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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 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

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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 KootaReporting 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 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

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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 KootaFaculty 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.

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.

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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 ManagementPerspective (2005)

Participant: Deepak Kumar Jha (2004-2006)Organisation: Friends of Women World Banking, AhamdabadReporting Officer: Daksha N. Shah, Head, Credit departmentFaculty 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 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

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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 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

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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. 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 MubashirFaculty 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, RajasthanReporting Officer: Dr. R.P. Bisht, Project Manager, BCTFaculty 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

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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 INSURANCEReporting Officer: Mr. Srinivas RevanurFaculty 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

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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 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

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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, DirectorFaculty 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 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

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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 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

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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, BangaloreReporting Officer: Ms.Saleela PatkarFaculty 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 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.

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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. 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

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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

Sr.No.Participant Name(s)

Title Of The StudyYear of Submission

Oragnisation

1. Mr. Rajiv KhannaCustomer Satisfaction of Rural Credit and Insurance Services in a Village

2002Vaishal Patliputra Dugdh Utpadak Sahakari Sangh Ltd., Patna

2.Ms. Mohammad Hasfa Noorji

SHGs (Women) as Instruments for Non-Farm Income Generation Projects

2002 Centre for Youth and Social Development (CYSD)

3. Mr. Stanzin TsephalRural Credit System in a Village

2002UNNATI

4.Mr. Rajesh Kumar and Mr. Rajeev Bhatia

Role of Moneylender and Impact of SHG in a Village

2002Manavodaya, Lucknow

5.Mr. Girish BMr. VC Anooj

Customer Satisfaction of Rural Credit and Insurance Services

2002 Malabar Regional Milk Producer’ Union Ltd., Kozhikode

6. Ankur KumawatA Study of Self Help Groups

2003 Seva Mandir, Udaipur

7.Pabitra Kumar Rath, Amit Saha

SHG’s Role in Bringing Changes in Women’s Life at Family Level

2003 FARR-CASHE

8.Bharat Kumar Manilal Patel

Role of Financial Institutions in Empowering Earthquake Affected People and in their Rehabilitation

2003Cohesion Foundation Trust

9.Shekhar Kumar Sinha, Malkit Singh Didyala

Study of Micro Credit Programme Run by NBJK with Special Reference to Women Empowerment

2003Nava Bharat Jagruti Kendra

10.Rohit Mandhotra,Shilpa Bhan

SHG Formation and Awareness

2003 Allahabad District Milk Producer’s Cooperative Union (Parag Dairy)

11.Rajpreet Kaur and Navneet Jalan

Income Generation and Expenditure Pattern in a Village Community and its Impact on Saving and Investment Behaviour

2004Aga Khan Health Service

12.Ankur Shandilya and Raman Jain

Demand and Supply of Financial Services Among Rural Household’s: A Comparative Study of Two

2004 Foundation for ecological security

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Sr.No.Participant Name(s)

Title Of The StudyYear of Submission

Oragnisation

Tribal Villages in Rajsthan

13.Rajat Singhal

Demand and Supply of Financial Services Among Rural Households - A Study in Katrasa Village of Maliya Taluka of Junagarh District of Gujarat

2004

Aga Khan Health Service

14.Mahim Mishra

A Study on the Structure and Operations of Formal and Informal Rural Credit Systems

2004Foundation for Ecological Security

15.Jitendra Nayak , Sushant Kumar Tripathy

An in-Depth Study Of SHGs in the Villages

2004Gram Vikas

16.Ashutosh Kumar

Income Generation and Expenditure Pattern in the Village Community and their Impact on Savings and Investment Behaviour

2004Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd

17.Kiran Kumar Puttah , PS Kiran Kumar

Empowerment of Women through Self-Help Groups

2004BYRRAJU Foundation

18.V. S. Ravi Kumar Tadimalla and K. Somanadha Babu

Current Challenges and Problems of Micro Finance Based Poverty Alleviation Programmes in Andhra Pradesh Villages

2005Akshara

19.B.Kanti Kiran and M Lokesh

A Study of Velugu and World Vision SHGs in Mahbubnagar And Nalgonda Districts of Andhra Pradesh

2005

20.

Vishwasree Boga and Bhanu Shyam Nakka

Impact of Self Help Groups on Rural Livelihoods

2005AKSHARA

21.Abadhesh Rusia

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

Arthik Anusandhan Kendra

22.Nitin Gupta and Umanath Mishra

Current Challenges and Problems of Micro Finance Intervention

2005 Centre for youth and social development (CYSD)

23.Rohit GargStudy of the Credit System (Formal And Informal) and Placing SHG in It

2005PRADAN

24.Ravi Chandra and Scope and Prospects of 2005 Village welfare

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Sr.No.Participant Name(s)

Title Of The StudyYear of Submission

Oragnisation

Shahid Ahmad Khan

Evolving an Insurance Product by the Village Welfare Society as a Micro Finance Institution.

society

25.Samrat Mazumdar and Kausik Kumar Chakraborty

Critical Appraisal of Savings and Credit Products Evolved by Village Welfare Society in its Conduct as a Micro Finance Institution

2005

Village welfare society

26.Anant Jayant Natu and Neeraj Kumar Lal

Current Issues and Challenges in Microfinance Interventions": A Study of the SHGs of Sampada Trust in the Ahmednagar District

2005

Sampada Trust- WOTR

27.Anukul Sahoo and Swadhin Anand Guru

Contribution of Credit and Non credit inputs in national rural employment generation programmes

2005  People’s Rural Education Movement (P.R.E.M.)

28.Tushna Dora and Tanushree Chatterjee

Current challenges and problems of micro finance interventions

2005  Chaitanya

29.Guru Datt and Hariom Gulati

Assessment of financial services availed by members vis-à-vis non-members of SHGs.

2005  IBTADA, Alwar

30.Shruti Chhangani and Rajnish Ranjan Prasad

Assessment of financial services availed by members vis-à-vis non-members of SHGs

2005 Chaitanya

31.Richi Agarwal and Chandrakant Kashiram Ingole

Study of financial issues of SHG

2005 Chaitanya

32.Manoj Bobade Current challenges and problems of micro finance interventions

2005  People’s Rural Education Movement, Orrisa

33.Swati and Ashish Jha

Current challenges and problems of micro finance interventions

2005  Nav Bharat Jagriti Kendra (NBJK), Jharkand

34.Rajeev Kumar and Kumar Nilabh

Current challenges and problems of micro finance interventions

2005  Adithi Plan- Bhihar

35.Swetha Bharadwaj and Ruchi Luthra

SHGs as an instrument of social empowerment

2005  Tarun Bharat Sangh

36.Shruti Sehgal and SHGs as an instrument of 2005 Chaitanya

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Sr.No.Participant Name(s)

Title Of The StudyYear of Submission

Oragnisation

Swati Bothra social empowerment37.Arun Kaushik and

Ujwal Shankar Sustainability of Microfinance Interventions

2005  Nava Bharat Jagriti Kendra

38.Anand Prakash and Amrit Choudhary

Costs incurred by MFIs for micro finance schemes

2005 Nava Bharat Jagriti Kendra  

39.Rebati Raman and Binu Jhawar

Sustainability of Microfinance Interventions

2005  Nava Bharat Jagriti Kendra

40.Vishwajeet Kumar and Manish Chandra

Costs incurred by MFIs for micro finance schemes

2005  Nava Bharat Jagriti Kendra

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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, BiharFaculty 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), OrissaFaculty 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 ,RajasthanFaculty 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

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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.

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

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

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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, OrrisaFaculty 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, GujaratFaculty 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, JharkandFaculty 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. GujaratFaculty 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.

The study recommends Government interventions in the area of irrigation and facilitating transport for ease in marketing. For development agencies, the main

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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, RajasthanFaculty 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, GujaratFaculty 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 providers working and examine the gaps between demand and supply. The study was based on field level observations, group discussions, survey and unstructured

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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, RajasthanFaculty 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, OrrisaFaculty 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, Dedgaon and Chhantranga located in Bolangir district of Orrisa. The study was carried out through informal and focused group discussions with group members,

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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, BiharFaculty 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 was due to conflict in the OBC and SC community over the construction of a meeting

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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), OrrisaFaculty 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

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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, MaharashtraFaculty 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.

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

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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 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

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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 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

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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: ChaitanyaFaculty 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: ChaitanyaFaculty 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), JharkandFaculty 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 SanghFaculty 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: ChaitanyaFaculty 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

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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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