ELECTED DIRECTORS
GOVERNMENT NOMINEE DIRECTORS
SPECIAL INVITEES Smt. S. Anitha
President
Smt. P. Kamala Vice President
Smt. B. Swaroopa Treasurer
Smt. K. Jyothi Director
Smt. Lanka Sneha Director
Smt. B. Kavitha Director
Smt. K. Meena Director
Smt. Gandra Lalitha Director
Smt. Cimarla Jyothi Director
Smt. G. Shyamala Director
Smt. Radhabai Director
Smt. Ch. Manjula Director
Sri Vikas Raj, IAS Prl. Secretary, PR & RD
Sri Sandeep Kumar Sultania, IAS Secretary, Finance
Sri. M. Veerabrahmaiah, IAS Registrar of Co-operative
Societies
Sri. G.Vidya Sagar Reddy Managing Director
Stree Nidhi
MESSAGE
It is a matter of great pleasure that Stree Nidhi has completed six years in the service of SHG members enabling them to access a bouquet of financial services aimed at poverty alleviation. The efficiency with which Stree Nidhi operates in providing credit services at affordable rate of interest and in time is derived from the strength of SHGs and their federations nurtured by SERP and MEPMA.
The commitment and involvement of SHGs and their federations supported by the staff of Stree Nidhi, SERP and MEPMA with their dedicated efforts have made it possible for Stree Nidhi to emerge as a role model and unique organisation in the country. The way Stree Nidhi is leveraging the technology in reaching out to unreached / under reached is exemplary.
It is also heartening that interest rate on loans charged by Stree Nidhi are comparable to those charged by banks on their lending to SHGs and even lower in some cases making it a cost effective model. It has reached more than 1000 villages as Business Correspondent to banks extending banking, MeeSeva services through BC points and Palle Samagra Seva Kendralu (PSSK) at their door steps and the progress made is praise worthy.
Stree Nidhi needs to focus more on livelihood financing, offer credit plus services and emerge stronger in the service of poor SHG women.
On this occasion, I wish all SHG women and their families make use of services offered by Stree Nidhi for their well bening and wish Stree Nidhi to emerge as a strong and vibrant financial organisation in the services of poor.
Shri Jupally Krishna Rao,
Hon’ble Minister, Panchayat Raj &
Rural Development, Government of Telangana
Shri Vikas Raj,
IASPrincipal Secretary, PR & RD, Government of Telangana
MESSAGE
Development economics need innovative approaches to address poverty related challenges. Stree Nidhi Credit Cooperative Federation Limited.,is such an innovation and has emerged as a role model in the country providing credit and other financial services to the poor at affordable interest rate and in time. It is a matter of pride that the federations of SHGs have moved up in the ladder and promoted Stree Nidhi in coordination with State Govt. for purveying financial services to the SHG members effectively. More importantly, the role of federations in providing last mile connectivity making Stree Nidhi a low cost credit delivery model is note worthy.
Leveraging user friendly technology coupled with robust monitoring mechanism demonstrates the need for such institutions in the country for poverty alleviation. It is in fitness of things that the NRLM,GoI identified Stree Nidhi as a National Support Organisation to replicate Stree Nidhi model in other states.
It goes to the credit of Stree Nidhi as also SERP and MEPMA and their staff, who made it possible to make Stree Nidhi a torch bearer in the country as a unique cost effective financial services delivery system. While small finance for consumption is necessary, there is a need for paradigm shift to finance livelihoods in a big way to augment income of poor. Stree Nidhi has made strides in this direction and need to further intensify those efforts, including financing Farmer Producer Organisations.
I wish all the best to Stree Nidhi and SHGs and thier Federations on this occasion.
Abbreviations
ABFL Agri Business Finance Limited
AGM Assistant General Manager
APGVB Andhra Pradesh Grameena Vikas Bank
BC Business Correspondent
BWR Brick Works Rating
CARP Community Audit Resource Person
CBOs Community Based Organisations
CDS Center for Development Studies
CEO Chief Executive Officer
CIF Community Investment Fund
CM Chief Manager
CRM Customer Relation Management
CUG Closed User Group
DCB Demand Collection Balance
DGM Deputy General Manager
DPR Detailed Project Report
DRDA District Rural Development Agency DRDO District Rural Development Officer DRP District Resource Person of TS - SSAAT
EC Executive Committee
EFMS Electronic Fund Management System e-KYC elctronically Know Your Customer
FSS Finacial Self Sufficiency
GPRS General Packet Radio Service
H.O. Head Office
HLP Household Livelihood Plan
HR Human Resource
IGA Income Generating Activity
IHHL Individual House Hold Latrine
IT Information Technology
ITDA Integrated Tribal Development Agency
ITE & C Information Technology Electronic & Communications IVRS Interactive Voice Response System
MFI Micro Finance Institution
MIS Management Information System
MS Mandal Samakhya
NABARD National Bank for Agricultural and Rural Development NCDC National Cooperative Development Corporation
NPA Non Performing Asset
NREGS National Rural Employment Gaurantee Scheme NRLM National Rural Livelihood Mission
NSO National Support Organisation
NSTFDC National Scheduled Tribes Finance and Development Corporation
OSD Officer on Special Duty
OSS Operational Self Sufficiency (Ratio)
OSS One Stop Shop
PD Project Director
POP Poorest of Poor
RBI Reserve Bank of India
RM Regional Manager
ROA Return on Assets
SBI State Bank of India
SCSP Scheduled Caste Sub Plan
SERP Society for Elimination of Rural Poverty
SHG Self Help Group
SHG-BLP Self Help Group - Bank Linkage Programme SLCC State Level Consultative Committee
SLF Slum Level Federation
SNRP Stree Nidhi Resource Person
SRLM State Rural Livelihood Mission
SVEP Start-up Village Enterprenuership Programme
TGB Telangana Grameena Bank
TLF Town Level Federation
TSIPARD Telangana State Institute of Panchayat Raj And Rural Development
TSP Tribal Sub Plan
TSSSAAT Telangana State Society for Social Audit , Accountability and Transparency
URL Uniform Resource Locater
VLEs Village Level Enterprenuers
VO Village Orginisation
INDEX
Chapter Particulars Page
No. No.
PART - A
1 Micro Finance - A Policy Perspective 1-3
2 Stree Nidhi – An appropriate Solution 4-8
3 Our Support Organizations - SERP and MEPMA 9-10 4 Role and importance of SHG Federations as Last Mile 11-13 5 Stree Nidhi Organization and Management Structure 14-17
6 Mobilization of Resources 18-22
7 Loan Policy and Risk Mitigation 23-28
8 Credit Flow – Analysis 29-34
9 Robust Monitoring Mechanism – A key element 35-36 10 Social Audit as a tool to bring transparency 37
11 Financial Performance 38-44
12 Corporate Governance in Stree Nidhi 45-47
13 Digitalization of Operations for seamless functioning 48-49 14 Stree Nidhi as a Business Correspondent to Banks – 50-52
A Unique model in Telangana
15 Capacity Building of Staff and Community 53
16 New Initiatives / Policy Changes 54-56
Micro Finance - a policy perspective
Chapter - 1
1.1. It has been 25 years since NABARD launched SHG Bank linkage programme in the country which ushered in a great revolution and has been a game changer in the sphere of financial inclusion of the unreached. As per NABARD report on satus of Microfinance Sector 2016-17, there are 85.7 lakh SHGs in the country covering around 10 cr. rural households penetrating 60 per cent of the rural households. The loan amount disbursed by banks to SHGs during the year 2016-17 was Rs. 38781.16 crore while the total bank loan outstanding to SHGs was at Rs. 61581.30 crore. The average loan disbursement per group in the country in the year was Rs. 2.04 lakh.
1.2. MFIs have been financing SHGs and also directly financing individual clients. As per MFIN, as on 31.03.2017, the Microfinance industry has a total loan portfolio of Rs. 1,06,916 crore. As on 31 March 2016, they reached out to 40 million clients with an outstanding credit Rs. 63,853 crore. Interestingly, in the recent past MFIs are growing fast in the states like Punjab, Haryana, Gujarat, Himachal Pradesh, and
considered as means and end. Poverty is multi-dimensional and need to be addressed holistically as economic poverty alone is not a solution.It is also important that poor are insulated from risks of losing earning assets and loss of earning member in family. Thus, microfinance is instrumental in achieving Sustainable Development Goals of poverty eradication by 2030 through financial inclusion and social engineering.
1.4. An appropriate eco system is being created by GOI through NRLM in this direction by organising, nurturing SHGs and their federations more effectively. There is a need for evolving appropriate mechanism to dovetail development of such net-work of institutions to provide financial access needed and bring required synergy among all stake holders. The Govt. of India needs to bestow serious attention to this aspect as the federations have enormous potential to provide last mile connectivity to deliver various services needed by community including promotion of livelihoods and would facilitate emergence of cost effective credit
1.5. It is need less to mention that in the wake of rapid urbanisation, urban poverty is also alarming. While NULM is addressing the issues, there is huge scope for formation of SHGs in urban areas. However, considering the issues which are unique to poor in urban areas due to vast areas and difficulty in establishing and tracking members’ identity becomes difficult particularly in the absence of a permanent address and other forms for establishing identity. Though it is appropriate to have data for all members of SHGs whether in rural or urban areas, it is essential to capture Aadhaar, ration card, voter card etc., in case of urban groups as it will not only help in extending required financial support but also for monitoring purposes.
Need for Low cost credit delivery model 1.6. The present system of dispensation of financial services with NBFC-MFIs or other forms of institutions like SFBs is high cost in nature and will burden poor SHG women. It is, therefore, in fitness of things to encourage institutional frame work, practicing the principles of Self- help and cooperation on the lines of Stree Nidhi, Telangana in all states in coordination with GOI, NRLM to cater to needs of all financial services as such legal forms in cooperative structure have advantages of mobilisation of savings from community, their ownership through subscription to share capital, role of SHG federations as last mile and tax advantages on interest income etc., which help in
Investment in technology
1.7. The number of SHGs in the country is increasing year after year. With the formation of more number of SHGs in urban areas the number would further swell. Such a huge net- work warrants maintenance of large volume of data on various aspects and analytics thereon to serve the community as per needs articulated. This calls for huge investment in technology and IT related infrastructure.
Such an investment can also be helpful in tracking the progress made due to various interventions.
Leveraging SHG net-work for development of state
1.8. In development economics empowerment of women in all spheres of life assumes greater importance and keeping in view SDGs, it is imperative that such a network of SHGs and their federations is properly harnessed for planning development of the state as SHGs and their federations serve as entry point for many Govt. programmes for ameliorating conditions of the poor women.
1.9. It is also of paramount importance that such net- work is made use of for poverty alleviation by promoting livelihoods in a big way in coordination with NGOs, SRLMs and NABARD including promotion of FPOs as the latter is the need of the hour for augmenting income in a more organised way. Such initiatives can be funded by banks or by niche institutions like Stree Nidhi with the required support of the GOI and State Govt.
concerned.Most of the goals focus on
affordable credit to enterprises. The role of line departments needs to be strengthened for identifying sources of livelihoods for SHG women, and various requirements of Govt.
may be sourced from SHGs by providing required support to them.
Converging credit with Credit plus service 1.10. To achieve and sustain income growth of the bottom 40 per cent population by 2030 under SDG in order to reduce in equality, access to resources especially financial is a necessity.Making finance available finance through SHGs is not an end in itself as it is only a means. The poor need skills and entrepreneurship alongside aspiration to grow. Broad basing and policy tweaking by the GOI, NRLM would facilitate NSDC in coordination with State Govt. and SRLMs to take up these activities on a large scale which will ensure productive use of credit for augmenting income.
Role in implementation of Antyodaya 1.11. The GOI has planned for development of villages in a more integrated manner and launched Antyodaya scheme for the purpose to cover all the villages in the country over a period. Mission Antyodaya is a convergence frame work for measurable effective outcomes on parameters that transform lives and livelihoods by focusing on Financial Inclusion and SHGs as Social Capital along with other agents of convergence. Financial services to women would provide for livelihoods and facilitate development through credit. The success of efforts of convergence would depend largely on the role played by the financing institutions. It is the need of hour to establish specialised institutions in different States of the country to cater to the needs of SHGs similar to Stree Nidhi Telangana with cost effective delivery model having flexibility to customise systems, procedures products and services that aptly suit the financial needs of community.
2.1. Rapid strides in growth of branch network in Commercial banks and Regional Rural Banks including Co-operative sector in rural areas has ushered in a new era in providing financial services to the poor.
Though it helped in socio economic development of the poor, a large chunk of them are still not able to access required credit from banking industry.
2.2. Inclusive development began in 1992 with the launch of SHG Bank Linkage programme in the country under the aegis of NABARD. Formation of SHGs and their linkage with Banks have expanded credit flow for consumption and other productive purposes tremendously. However, due to various factors poor are not able to access
adequate and timely credit. They are therefore, resorting to high cost credit provided either from Micro Finance Institutions/other lenders in private sector and or money lenders. This has pushed the poor into debt trap and some of them committed suicide in the erstwhile state of Andhra Pradesh. The then State Govt.
promulgated an ordinance in the year 2010 regulating the operations of MFIs in the State.
While there was huge demand for credit, the supply was not adequate from banking sector.
2.3 The State Govt. established Stree Nidhi Credit Cooperative Federation Ltd., in association with Mandal Samakhyas and Pattana Samakhyas and registered it on 07.09.2011 under the State Cooperative Societies Act’ 1964.
Stree Nidhi – An appropriate solution
Chapter - 2
Microfinance- a policy perspective Microfinance- a policy perspective
Objectives
2.4. The main objectives of Stree Nidhi are as under.
•
To provide affordable credit to SHG members expeditiously using technology and supplement credit support from banking sector.•
To alleviate poverty by financing income generating activities.•
To work for socio economic upliftment of members of Self Help Groups both in Rural and Urban area.Unique Features
2.5. Over a period of last six years, Stree Nidhi has exhibited robust growth and emerged as a major boon to the poor in rural and urban areas across the state. In the present scenario, poor are not requred to go any where except Stree Nidhi for sourcing credit both for their emergent and livelihoods requirements as credit is available in time and at low cost. The following features, distinguish Stree Nidhi from others in micro finance sector.
•
Community stake is strongly built in ownership and management in collaboration with State Government•
Timely credit in 48 hours and at low cost•
Low operational cost as last mileconnectivity is provided by SHG federations under agency arrangement
•
Transparent and user friendly IT platform for operations•
Easy customization of products based on needs of community•
Facilitating proper implementation of Government programs as channelizing agency•
Supplement and support SHG-BLP ensuring credit discipline to reduce NPAs as credit is extended only to regular SHGs under SHG-BLP•
Strengthening SHG federations operationally and financially through rating and by paying service charges•
Ensuring social security through risk mitigation services to members•
Promoting Financial Inclusion as Business Correspondent to banks and extending Me seva services (Govt. to citizen services)•
Earmarking of credit to SC/ST and POP members to ensure credit flow•
Mobilization of savings from SHGs and from SHG federations•
Focus on promoting livelihood and income generation activities for financing.UNIQUE FEATURS OF STREE NIDHI
Stree Nidhi stands Apart
2.6. The federations of SHGs viz; MS and TLF along with State Government are the equity holders of Stree Nidhi. Managing Committee consists of elected representatives from MS and TLFs, Govt., nominees, Spl. Invitees and Managing Director appointed by the State Government.
The focus is on making Stree Nidhi relevant to community through innovations and services ensuring its sustainable growth.
Stree Nidhi stands, Apart among other MFIs as it has the following strengths.
Low operating cost
2.6.1. Stree Nidhi has been able to keep operational cost low as it has no brick and mortar branches. The federations of SHGs
connectivity and are being compensated by paying service charges. They play a key role in facilitating the members / SHGs access credit either through mobile or web based application and monitoring thereof which help in keeping cost of operations at low level.
Providing credit at an affordable cost 2.6.2. The interest rate charged to SHG members on loans is presently at 13.0% per annum and with effect from 1st Jan 2018 it will be 12.5% only. Of this 1.25% is passed on to VOs/SLFs and 0.25% to MSs/TLFs to compensate for their services in monitoring Stree Nidhi services. Thus, the effective rate of interest to Stree Nidhi is less than that of Banks in the state and may be still lower than the banks if real cost of transaction and other
programme. The interest rates charged by major banks in the state under SHG-Bank linkage programme are mentioned below.
Interest Rates charged by Banks under SHG Bank Linkage Programme Name of the Bank Rate of Interest(%) State Bank of India 12.25
Andhra Bank 11.90
A P G V B 12.50
TGB 14.00
Unlike the rate charged by MFIs in private sector which is at 20-21%, the effective interest charged presently by Stree Nidhi is at 11.5%, which will be further reduced to 11% from 1st Jan 2018.
Community participation
2.6.3. The feeling of ownership in the institution is crucial for successful functioning of Stree Nidhi. The stakes of community in the form of Share Capital, Savings and other deposits developed a sense of belongingness. The agency arrangements entered into with Stree Nidhi by SHG federations enable their participation in identification, due diligence, loan documentation, disbursement and monitoring and are thus stands as testimony to the community participation in functioning of Stree Nidhi. The merits of Stree Nidhi over other MFIs are enlisted below.
Stree Nidhi
• Community owned
• SHG federations – last mile connectivity
• Need based lending
• Low operational cost at 1-2% of the working capital
• Low interest rates – 13% to members
• Margin shared with VO and MS @ 1.25% and 0.25% each
• No processing charges levied
• No profit motive
• Holistic approach to Poverty Alleviation
• No unhealthy practices in recovery
Other MFIs
• Promoted by private individuals / organisations
• Lending using only employees
• High operational costs at 8-10% of the working capital
• High interest rates 21%
• 1% processing charges levied
• Lending through JLGs
• No holistic approach to Poverty alleviation
• No transparency in functioning Stree Nidhi Vs Other MFIs
Stree Nidhi as a National Support Organization (NSO)
Considering the utility of Stree Nidhi and need for replication in other states, NRLM, Govt. of India has identified Stree Nidhi, Telangana as National Support Organization.
The objective is to extend support to SRLMs of different states to replicate the Stree Nidhi model.
Upon the requests of SRLMs of Rajasthan and West Bengal, Stree Nidhi has completed the task of preparation of feasibility report and DPR in respect of Rajasthan and feasibility report for West Bengal and forwarded to the respective State Governments. Other States namely Tamil Nadu and Madhya Pradesh have also evinced interest in rolling out Stree Nidhi model in their states.
Convergence with SERP and MEPMA 2.6.4. Convergence with SERP and MEPMA bring better synergy and more value to the services of Stree Nidhi. While SERP and MEPMA add value through strong institutions, financial access, livelihood promotion and social interventions, Stree Nidhi can meet investment and other needs
of community in addition to extending banking services, Govt. to citizen services by functioning as Business Correspondent to banks. This would facilitate addressing poverty in a holistic manner. Thus, such a transformative partnership and collaboration model augurs well for alleviation of poverty.
3.1. The State Government promoted an autonomous society called SERP and registered under societies Act to organise and nurture women SHGs and their federations and to implement various poverty alleviation interventions. SERP facilitates creation of network of SHGs and their federations viz. Village Organisations at village level, Mandal Samakhyas at Mandal level and Zilla Samakhyas at District level and strengthening thereof.
3.2. A major strength and support is the master data maintained by SERP on individual member wise, SHG wise, VO wise, Mandal wise and district wise. In addition, SERP also maintains data on bank linkage which also helps in conduct of due diligence of loan requests made to Stree Nidhi, by denying loans to defaulters which ensures credit discipline
3.3. SERP has introduced computerisation of transactions data in respect of SHGs, VOs and MSs, which will help in strengthening these institutions. With all its 4000 staff positioned in the field, SERP strives to alleviate rural poverty by facilitating credit
incremental income on a sustainable basis, where Stree Nidhi can play a very prominent role.
3.4. SERP also implements “Asara” pension scheme benifitting 40 lakh people. It also plays a key role in various major activities like Haritha Haram, Swatcha Bharath Mission, marketing support by facilitating procurement of food grains, Abhaya Hastham etc, for the benifit of poor.
3.5. It also focuses on social issues like gender, health and education. SERP is also implementing different economic support schemes for the benefit of the poor like SCSP, TSP, IWMP, NRLM and SVEP with Stree Nidhi as a Channelising agency and also extends insurance facilities to cattle through Call centres at Zilla Samakhyas.
3.6. SERP and DRDAs are instrumental and playing the role of a catalyst in propagating the services of Stree Nidhi and providing back stop support to Stree Nidhi in mobilising savings from SHGs, facilitating access to credit and close monitoring for prompt
Our Support Organizations - SERP and MEPMA
Chapter - 3
3.7. Mission for Elimination of Poverty in Municipal Areas (MEPMA)
To develop suitable strategies to alleviate poverty in urban area and to implement the same, the Government has established a Society called “Mission for Elimination of Poverty in Municipal Areas”. MEPMA is focussing on formation and nurturing of SHGs and facilitating implementation of SHG – Bank Linkage programme.
MEPMA with the support of PDs located at district Head quarters has
promoted SHG federations at ward level called as Slum Level Federaions (SLFs) and at town level as Town Level Federations (TLFs). Stree Nidhi expanded services to SHGs in urban area promoted by MEPMA.
The Staff are actively involved in ensuring delivery of credit and other financial services of Stree Nidhi. They extend support in identification of members to take up suitable micro enterprises,and play a key role in monitoring credit flow and repayment of loans.
4.1. In the state of Telangana, 4.41 lakh SHGs were promoted and nurtured by SERP in rural area and 0.93 lakh SHGs by MEPMA in urban areas excluding SHGs in GHMC area. In villages, about 20-30 SHGs are federated into Village Oraganisations (VO) and similarly in urban area into Slum Level Federations (SLF). About 20-30 VOs and SLFs are federated at Mandal Level as Mandal Samakhyas (MSs) and Town Level Federations (TLFs) at town level respectively.
These are legal entities registered under Mutually Aided Co-operative Societies Act (MACS Act)’1995.
4.2. The federations of SHGs, i.e., the VOs and SLFs play a prominent role in providing last mile connectivity, as they identify members and do due diligence, facilitate application of loans through IVRS, preparation of HLPs and loan documentation.
They are instrumental in implementation of all activities of Stree Nidhi and thus function like branches of Stree Nidhi at village and
ward level. District wise data relating to no.
of members, SHGs, VOs/SLFs & MS/TLFs are furnished in tables 1 & 2 of part-B appended to this report.
Distribution of SHGs among federations 4.3. The no. of SHGs affiliated to each VO/
SLF varies across the State. The following is the distribution pattern of SHGs in VOs/
SLFs.
No. of SHGs SERP MEPMA
per VO/SLF (No of VOs) (No of SLFs)
up to 4 175 66
5-10 1748 45
11-15 2558 132
16-20 3148 473
21-25 3739 634
26-30 3181 605
31-35 2001 379
36-40 1057 174
above 41 924 155
Total 18531 2663
Role and importance of SHG Federations as Last Mile
Chapter - 4
S.No. Particulars No. of MS No. of TLFs No. of VOs No. of SLFs
1 A grade 247 38 9177 1437
2 B grade 144 4 4116 220
3 C grade 69 2428 52
4 D grade 44 1546 15
5 E grade 38 1238 37
6 Not Graded 26 902
Total 542 42 18531 2663
Grading of Institutions
4.4. The strength of the institutions of the poor viz, SHGs, VO/SLFs, MS/TLFs play a paramount role in purveying credit and other financial services to members of SHGs. It is strongly believed that the strength of federations of SHGs is the strength of Stree Nidhi and strength of SHGs is strength of federations. The Federations are subjected to rating process annually and grades are awarded depending on performance under
No. of VOs/SLFs - SHG distribution
prescribed key parameters based an audited financial statements, as at the end of preceding financial year. The SHGs federations are graded into A,B,C,D & E categories and based on grade credit limits are allocated. The process of grading for 2016-17 has been completed and the status of grading of VOs/SLFs/MS/TLFs is as follows. The criteria followed for grading purpose are given in table 3a & 3b of part -B of this reports.
4.5. District wise grades of MS/TLFs and VOs/SLFs are furnished in table no. 4.a.1
& 2 and 4.b.1 & 2of part -B of this document.
4.6. The comparative position of the status of grades obtained by VOs for the last two years is presented in the following table.
S.No Grades of VO 2015-16 2016-17
1 A 6265 9177
2 B 3643 4116
3 C 2167 2428
4 D 1209 1546
5 E 3977 1238
Not graded 195 26
Total 18492 18531
Stree Nidhi – Organization and Management Structure
Chapter - 5
5.1. Stree Nidhi Credit Co-operative Federation Ltd., is an apex body registered under Telangana Stat Co-operative Societies Act’1964. The federations of SHGs viz. MSs and TLFs and also State Govt. are the shareholders of the organisation.
5.2. General Body: The General Body is the supreme body for decision making in Stree Nidhi as provided under the Act ibid.
All the Share holders are the members of General Body.
5.3. Managing Committee: The elected representatives of Share holders i.e Mandal Samkahyas and Town level Federations, Directors nominated by the State Govt and Managing Director, a professional appointed by the State Govt. are the members on
Managing Committee of Stree Nidhi Credit Co-operative Federation Limited. At present, there are nine Directors representing Mandal Samakhyas and three members from Town level Federations aside three members nominated by the State Govt. viz., Principal Secretary, Rural Development; Registrar of Co-operative Societies and Secretary, Finance. The Managing Director is Ex-officio member on the MC. The MC also has three Special invitees viz. Mission Director, MEPMA, Chief Executive Officer, SERP and CEO, MAS.
5.4. Elections were held to Managing Committee on 25.05.2015 to elect representatives from MSs and TLFs for a term of 5 years subject to the provisions of the bye-laws of Stree Nidhi.
Organization Structure – Staff
5.6. The Organizational structure of Stree Nidhi has evolved in tune with the requirement of the institution with expansion in credit flow, coverage of members of SHGs as also other services like mobilization of savings, financial inclusion, risk mitigation, IT usage etc. Stree Nidhi has been recruiting staff with experience in banking, accounting and financing SHGs, micro finance, capacity building of institutions, livelihood activities and IT in the cadres of Deputy General Managers, Assistant General Managers, Regional Managers/Chief Managers, Managers and Asst. Managers as and when needed. The Staff strength has been increased in tune with the expansion.
Staffing Pattern
5.7.1. Head Office: Different verticals have been created to handle and supervise specific functions and to extend required support at field level. All the verticals are headed by DGMs or AGMs and assisted by Chief Managers, Managers and Assistant Managers.
All these verticals are under administrative control of the Managing Director. The H.O. has the following verticals.
• Board Secretariat, Policy and MIS
• Monitoring – Credit flow Monitoring and CRM
• General Administration
• Credit and Livelihoods
• Information Technology
• Financial Inclusion
• Funds Management Meetings of Managing Committee
5.5. The Managing Committee meetings are held once in two months and during the FY
2016-17, all 6 MC meetings were conducted and details of the same are furnished below:
S.No. MC Date of No. of MC No of MC % of Special
Meeting No. Meeting Members Members Attendance Invitees
attended attended
1 10 20.05.2016 16 11 69% 1
2 11 19.07.2016 16 14 88% 3
3 12 07.09.2016 16 13 81% 1
4 13 07.11.2016 16 13 81% 2
5 14 04.02.2017 16 12 75% 1
6 15 30.03.2017 16 11 69% 2
Zonal Structure at HO
5.7.2. With an aim of achieving excellent results under all business parameters through effective monitoring mechanism, all the districts except Hyderabad are divided into five zones and few districts in the zone are considered as a Region. The Zones are headed by Zonal Managers i.e. AGMs, who monitor the performance of the Regions under their jurisdiction.
Field Level Staff
5.7.3. The Regions are headed by Regional Managers who are responsible for overall performance in the respective Regions. At the grass root level 6-7 Mandals /TLFs are allocated to Managers and Assistant Managers and they are responsible for overall performance of allocated Mandals/
TLFs. Division of entire area in the Zones, Regions and operable area has facilitated required interaction and monitoring support to staff and this SHG members alike at grass root level and resulted in excellent performance under Key Business parameters.
Human Resource Policy
5.8. Stree Nidhi has evolved an HR policy in accordance with various requirement of staff.
The Staff strength has now increased to 208 with the recruitment of 77 SHG women found eligible in the position of Assistant Managers, after rigorous scrutiny. The details of staff positioned at HO and field in different positions are given in the table no.5 as a part of this report and organogram is depicted below.
6.1. To meet growing credit needs of SHG members both in rural and urban areas, it is imperative to mobilize resources from various sources. Further,on account of various measures initiated by Stree Nidhi in co- ordination with SERP and MEPMA, awareness among the members on availability of timely, affordable and hassle free credit services from Stree Nidhi is percolating gradually up to SHG member level. The thrust laid on finncing livelihood is also generating demand for such loans. Stree Nidhi has also introduced loan products like, bicycle, smart phone, laptops, autorickshaws financing etc. In tune with above, Stree Nidhi has been fine- tuning its credit policy from time to time and enhanced credit limits of VOs/SLFs, so that more needy members of SHGs can avail loans.
6.2. Being an apex federation of Co- operatives, there is a need to rely more upon the resources mobilised from community i.e., savings and deposits from SHGs and their federations. However, considering the limited financial resources of CBOs, Stree Nidhi relies more on banks and other financial institutions for borrowings. The resources of Stree Nidhi consist of Share Capital, Reserves, Deposits from community and
bulk of resources. The status of resources mobilised as on 31.3.2017 is furnished below.
Table : Resources as on 31.3.2017
( Rs Cr)
Type of Resource Amount Percentage Share capital and 91.41 4.97%
Reserves
Reserves and Undist- 110.07 5.98%
ributed profit
Grants from 55.57 3.02%
State Govt.
Deposits 431.40 23.43%
Bank Borrowings 1152.23 62.60%
Total Resources 1840.66 100%
Mobilization of Resources
Chapter - 6
While borrowings from Banks form major chunk of financial resources of Stree Nidhi, Stree Nidhi is striving for increasing
Own funds of Stree Nidhi
6.3. Among the resources, Share capital contributed by both State Govt. and MS/
TLFs, Reserves, undistributed profit, grants from State Govt.and Core deposits constitute own funds of Stree Nidhi. The savings mobilised under Samruddhi and CIF corpus deposits are considered as core deposits of Stree Nidhi. The total owned funds have increased from Rs. 482.11 cr as on March 2016 to Rs.612.73 cr as on March 2017.
Share Capital
6.4. The Federations of SHGs viz. Mandal Samakhyas and Town Level Federations are eligible to become members i.e. share holders in Stree Nidhi by contributing to share capital aside the State Government.
The status of share capital subscribed in the last 3 years is mentioned below.
(Rs Cr)
Share Holders 2014-15 2015-16 2016-17 State Government 43.52 43.52 43.52 MS and TLFs 46.96 47.37 47.92 Total: 90.48 90.89 91.44
To improve ownership of community, Stree Nidhi has introduced loan linked share capital system w.e.f. 1st June 2017 which envisages mobilisation of 2% of loan amount disbursed as share capital. The details of district wise paid up share capital up to 31- 03-2017 are furnished in table no. 6 of part - B of this report.
increase own resources but also make the community to own up the institution. Four types of deposit products have been introduced viz. Samruddhi, Bhavitha, Sankalpa and CIF Corpus Deposit, details of which are discussed below.
Samruddhi Deposit
6.5.1. Samruddhi deposit scheme is aimed at mainly building up SHG stakes in the institution and also to improve small savings habit of SHGs. Under the scheme, each SHG saves Rs.100 per month. The amount saved for 12 months along with interest will be converted to fixed deposit for (5) years at the end of which the amount saved in the first year would be refunded along with interest. Thus, SHG will save the amount every year and would get the refund of deposit with interest after 6 years and this cycle repeats.Thus, Stree Nidhi will have their deposits, at any given point of time, for six years and therefore such deposits are treated as core deposits. The rate of interest paid is equal to the rate of interest paid by SBI on term deposits of similar tenure. The rate will be reset as on 1st April of every year.
Bhavitha Deposit
6.5.2. Under Bhavitha deposit scheme, SHGs can save their idle/surplus funds with them for a period of 3 years. The rate of interest will be above the interest rate paid by SBI for the similar term.
Sankalpa Deposit
6.5.3. The federations of SHGs i.e., VOs/
borrowings by Stree Nidhi. The interest is paid at monthly intervals if the amount of deposit is above Rs.1.00 lakh and at quarterly rests if it is less than Rs.1.00 lakh.The rate will be reset as on 1st April of every year.
CIF Corpus Deposit
6.5.4. The Corpus deposit scheme was introduced in Nov 2015 mainly to mobilize 75% of CIF available. This will be in the form of perpetual deposits in the name of MS concerned. The interest will be paid at monthly intervals and the rate of interest will be above the interest rate paid by SBI but not exceeding the interest paid on bank borrowings by Stree Nidhi and the rate of interest will be reset as on 1st April of every year. Loans up to 80% - 100 % of deposits can be availed against such deposits.
S.NO Deposit scheme Rate of Interest
1 Samruddhi 7%
2 Sankalpa 8%
3 Bhavitha 8%
4 CIF Corpus 9%
Deposit Mobilisation – Progress
6.5.5. Stree Nidhi has been making persistent efforts to create awareness among the SHGs and their federations about the need for savings with Stree Nidhi in co- ordination with SERP and MEPMA. The efforts have yielded good results in increasing the savings by SHGs and their federations year after year. The progress achieved under different schemes during the last three years is mentioned below.
Growth of deposits as on 31.03.2017
(Rs. lakh)
Year Samruddhi Bhavitha Sankalpa CIF Corpus Total
2014-15 7469.08 (45.5%) 85.700.5%) 4240.18 (25.5%) 4712.09 (28.5%) 16507 2015-16 13061.88 (41.08%) 109.41 (0.34%) 5491.23 (17.27%) 13134.9 (41.31%) 31797 2016-17 18756.18 (43.48%) 110.76 (0.26%) 7461.23 (17.30%) 16811.8 (38.96%) 43140
The total deposits have increased by Rs.113.43 cr as on 31.03.2017 recording a growth rate of 35.65% over the last year. The deposits constitute 24.10% of working funds.
The performance under different schemes for the past 3 years is furnished in table no.
7 a & 7 b of part-B of this report.
Borrowings from Banks and Other Financial Institutions
6.6. Stree Nidhi has been borrowing from Banks and other financial institutions in the
form of cash credit limits and term loans to meet demand for credit from SHGs. Keeping in view the healthy performance and strong financial strength of Stree Nidhi, Banks and Financial Institutions are keen to take exposure to Stree Nidhi. The credit limits and term loans availed from different banks and financial institutions as on 31.03.2017 are mentioned below.
( Rs Cr.)
S.No. Name of the Bank Credit Limits
Cash Credit Limits
1 Andhra Bank 200
2 State Bank of India 250
3 Bank of India 150
4 Canara Bank 50
5 T S Cooperative Apex Bank 200
6 Vijaya Bank 50
7 Indian Bank 100
Total Cash Credit Limits: 1000
Term Loans
8 ABFL 25
9 NAB Kisan 14
10 T S Cooperative Apex Bank 20
11 NSTFDC 100
12 NCDC 100
Total Term Loans: 259
Grand Total: 1259
Rating of Stree Nidhi
6.7. Stree Nidhi has been rated by M/S Brickwork Ratings India Ltd. With “BWR
BBB+”, out look stable. This rating was made for the purpose of availing credit facilities from Banks and other financial institutions.
7.1. Policy changes in Stree Nidhi loan procedure and products are made from time to time to meet needs of members of SHGs with the objective of making available needy services in hassle free manner. The policy changes are made in tune with the policy prescriptions made by RBI with regard to
Loan Policy and Risk Mitigation
Chapter - 7
financing SHGs. The salient features of the policy in vogue are as follows.
No. of members eligible for loan in a SHG 7.1.1. The present policy provides for loan access to a maximum of nine members depending on total no. of members in a SHG as mentioned below :
S.No. No. of members Total no. of members No.members of Maximum in a SHG eligible for loans eligible for eligible loan
loan by IVRS (Rs. lakh)
1 12 and above Up to 9 6 3.00
2 10 – 11 Up to 8 6 2.50
3 9 and below 75% of the members 4 2.00
or 6, whichever is higher
• The no. of members who can avail Micro / Tiny loans will be maximum no.
of members permitted to borrow per SHG less those permitted to avail general loans through IVRS.
• The maximum borrowing limit per SHG is Rs.3.00 lakh
• A maximum of Rs.1.00 lakh loan can be availed by a member
• A member who availed a general loan but repaying regularly for 12 months, can also avail Micro/Tiny loan for livelihood enterprises.
• For availing tiny loans i.e. above Rs.50,000 to Rs.1 lakh, a member's loan outstanding under Bank Linkage shall not exceed Rs.25000/-. The
• In case of loans for the purpose of marriage, the loan will be linked to the amount of loan given by SHG to it’s member for the same purpose. It will be a matching loan from Stree Nidhi.
Allocation of credit limits to VO/SLF and MS/TLF
7.1.2. Functioning of SHGs federations at Village/Slum level (Village Organisations and Slum Level Federations) and at Mandal/
Town level (Mandal Samakhyas and Town Level Federations) on sound lines is necessary to access credit by SHGs affiliated to them. The parameters considered for rating of the above agencies are own funds, regularity in conduct of meetings and percentage of member attendance, in EC Meeting Book keeping, Net profit earned,
Legal compliance, Savings, CIF recovery and repayment of Stree Nidhi loans.These institutions are rated once in a year based on performance as at the end of March of previous year.
Higher limit is fixed to VOs/SLFs which are rated high and within these limits SHGs can borrow and repay subject to the loan ceiling for SHG and member. As there will be regular repayment from SHGs, such amount can be lent again to other SHGs affiliated to the same VO/SLF. This would enable meeting the demand for credit and thus avoid high cost borrowing by members from other sources. Limits fixed to VOs/SLFs based on the grades obtained by them are as follows.
Loan products
7.2. Financing micro enterprises and livelihoods has been widely adopted as anti- poverty strategy. Micro enterprises help significantly and upward growth trajectory in income levels of poor for equitable development. Availability of affordable and timely financial services is crucial to the success of micro enterprises taken up by the poor, in particular.
7.2.1. Stree Nidhi has been playing a significant role in catering to credit needs of the needy members of SHGs for the last 6 years. The loan amount initially was limited to Rs.25,000 per member depending on the purpose of loan. Keeping in view, the potential for Micro Enterprises and other livelihoods in enhancing income level of the poor, Stree Nidhi made a paradigm shift to focus on financing livelihood enterprises. For taking up higher order livelihoods, the loan limit per SHG member was raised to Rs. 1.0 lakh as per the guidelines of RBI.
• Expansion of existing Income Generating Activities
• Taking up area specific potential new activities
• Cluster development
• Project based lending
• Co-ordinating with SERP and MEPMA for financing livelihoods
• Co-ordinating with NGOs associated with livelihood financing
• Financing activities of FPOs
7.2.3. Stree Nidhi loans are categorised into the following types:
Type of Loan Amount of loan I. General loans Rs.25000
II. Micro loans >Rs.25,000 to Rs.50,000 III. Tiny loans >Rs.50000 to
Rs.1.00 lakh
• Purchase of : up to Rs.6,000 Smart phones
• Purchase of : Up to Rs.5,000 Bicycles
• Purchase of : Up to Rs.1,20,000 Auto/Trolley
• Purchase of : Up to Rs.35,000 Laptops
• Construction : Up to Rs.12,000 of IHHL
Loan process
7.3. In the VO/SLF EC meeting, all the requests received from SHGs will be subjected to scrutiny with regard to attendance of member in SHG, savings and repayment history, skills and knowledge in activity, scope for incremental income and loan amount required. Thereafter, VO will take a decision whether the member is eligible for loan.
7.3.1. General loans can be accessed for both livelihoods and consumption purpose in the ratio of 70:30 out of the credit limit allotted. These loans can be accessed through IVRS using mobile phone/tablet.
7.3.2. Micro and Tiny loans can be availed only for livelihood enterprises and application for loans have to be made through web portal.
These loans can be availed only for IGA/
Livelihoods/Micro enterprises by the members in SHGs affiliated to VOs/SLFs with A, B grades in MSs/TLFs with A, B and C grades.
House Hold Livelihood Plan
Tiny livelihoods, Stree Nidhi has introduced Household Livelihoods Plans which have to be prepared by visiting the house hold of member interested in borrowing from Stree Nidhi for Micro/Tiny livelihoods. Necessary due diligence will also be exercised at SHG/
VO/SLF level. The details regarding the member and her family, proposed activity, availability of required raw material, skill &
knowledge, capital investment, sources of funds, loan amount required, scope for marketing of products, incremental income expected, repayment capacity, etc., are looked into, while preparing HLP and appraisal of the proposed activity.
Disbursment of Loans
7.3.4. Loan amount is released directly to SB A/C of SHG to which the member is associated. VO/SLF concerned has to monitor utilisation, establishment of unit and it’s maintenance by the member concerned.
The above is also recorded in minutes book of VO EC meeting. A certificate of utilisation has to be uploaded within 30 days of loan disbursement.Stree Nidhi staff will verify all the above cases independently and certify the utilisation of loans within 45 days of disbursement.
7.3.5. Loan applications and documents from SHGs are preserved at VO/MS and documents obtained from members are kept with the SHGs concerned.
Repayment Period
7.4. In order to facilitate the borrowers to repay conveniently, the no. of monthly loan
Loan amount Repayment period in months
Rs.25,000/- 24
>Rs.25,000 to Rs.35,000 36
>Rs.35,000 to Rs.50,000 42
>Rs.50,000 to Rs.1,00,000 60
Interest subvention: Vaddi Leni Runalu (VLR)
7.5. The scheme of Vaddi Leni Runalu is aimed at twin objectives of reducing interest burden on loans and encourage promptness in repayment of loans by SHGs. The State Govt. is implementing interest subvention scheme, where in the amount of interest paid by the members is reimbursed if the loan instalments (EMIs) is repaid within 30 days from due date. The amount of VLR will be adjusted by crediting to the loan accounts of SHGs as and when the amount is received from the Govt.
Stree Nidhi as a channelizing Agency 7.6. Stree Nidhi provides an effective platform for disbursement of amount and it’s tracking.
SERP has positioned Stree Nidhi as a channelizing agency for releasing amount to implement poverty alleviation programmes viz. SCSP, TSP, IWMP & NRLM. Stree Nidhi manages the funds released by SERP and facilitates disbursement of loans to the poor members identified by SERP and releases
activities and increase their family income.
The year wise coverage of members and loans disbursed as channelizing agency are given in the table below:
(Rs.Cr)
Year No of Members Amount Disbursed
2013-14 19286 51.15
2014-15 30422 74.58
2015-16 38363 141.29
2016-17 6282 39.36
Total: 94353 306.38
7.7. Risk Mitigation
7.7.1. Risk Fund Creation
It is essential that poor families are insulated from various risks including financial risk, in the event of un-timely death of a member.
This would also help Stree Nidhi in mitigating such risks to have a healthy loan portfolio.
As a prudent risk mitigating measure, Stree Nidhi is implementing Suraksha and livestock insurance scheme to SHG members, who availed loans from Stree Nidhi.
Stree Nidhi Suraksha Scheme
7.7.2.All the members of SHGs who avail loans from Stree Nidhi are covered for the loan period.Total loan amount will be covered till the end of repayment period as per
amount as well Stree Nidhi will issue a certificate of risk coverage in the name of the borrower with unique ID number with SHG as her nominee. The SHG will pass on claim to legal heir after liquidating of loan amount. Any type of death will be covered under the scheme. Verification of claims at field is done by staff of Stree Nidhi. All the reports related to risk coverage and claims are made available in website of Stree Nidhi.
Borrowers covered and Claims Status since 2016-17 and since inception
Particulars 2016-17 Cumulative since inception
No. of Borrowers 4,91,726 13,51,365 covered
Total Loan Amount 1373.73 3442.29 covered (Cr.)
Charges 13.88 32.81
received (Cr.)
Total Claims 1,647 3,574 Registered
Amount (Cr.) 3.90 8.56 No. of Claims 1,301 2,320 Settled
Amount (Cr.) 3.07 5.40 No. of Claims 346 866 Under Process
Amount (Cr.) 0.83 3.16
Livestock Insurance
7.7.3 Stree Nidhi entered into a MoU with United India Insurance Company, for providing Insurance coverage to animals purchased by the borrowers under Dairy scheme. The animals are covered under master policy till the end of repayment period of loan availed. The process of coverage and settlement of claims is done through community.
Mandal Samakhya will ensure tagging of the animals on their purchase in Shandi . Photographs of animals are uploaded in web portal from the login provided at Mandal level for issuing the insurance policy by insuring company. Acceptance of animal death confirmation from VO at the time of claim registration and waiving Post-mortem report and veterinary report at the time of claim facilitate hassle free settlement. Claim amount will be remitted to SHG concerned after adjustment towards loan outstanding as on the date of death of the animal and balance is paid to borrower.
In 2015-16, 13,292 she buffaloes were covered and 10,674 were covered in 2016- 17 with insurance for a period of 4 years, being the tenure of loan period. So far 509 claims were settled out of 999 claims registered under this scheme.
Credit Flow - Analysis
Chapter - 8
Loan disbursement
8.1. The quantum of loans disbursed in the financial year 2016-17 was Rs.1353.62 cr as compared to Rs. 1147.61 crores in the year 2015-16 recording a growth of 14.3%. The
cumulative disbursement of loans since inception stood at Rs. 3950.80 crores as at the end of FY 2016-17. The growth in loan disbursement since inception is shown in the follwoing graph.
Credit flow in rural and urban areas 8.2. During the year 2016-17, credit availed in rural areas (SERP) was at Rs.1236.31 cr and accounted for 91% of the total loans disbursed. The credit flow in urban area
Loan disbursement since inception (R
(Rs. cr.)
(Rs. Cr.)
SERP MEPMA
Amt. Share(%) Amt. Share (%)
1 2011-12 31.68 100 - -
2 2012-13 291.15 99 2.35 1
3 2013-14 386.65 93 30.52 7
4 2014-15 654.18 93 47.26 7
5 2015-16 1038.81 91 108.8 9
6 2016-17 1236.31 91 116.7 9
The trend in availment of credit in urban areas is on increase gradually mainly on account of increase in number of TLFs.
Trend in Credit flow in Rural (SERP) &
Urban (MEPMA) areas.
Coverage of SHG and members
8.3. The coverage of SHGs and members with loan portfolio has been increasing year after year under Stree Nidhi since inception.
In 2016-17, 4,88,078 members in 1,43,641 SHGs have availed loans from Stree Nidhi.
Cumulatively, 17 lakh members availed credit since inception. The no. of members and SHGs covered during the past 5 yrs is given
Year-wise coverage of SHGs
FY No. of SHGs
2011-12 7599
2012-13 47742
2013-14 62560
2014-15 88116
2015-16 126832
2016-17 143618
8.4. The coverage of VOs/SLFs and MSs/
Year wise Credit flow S.No.
Cumulative Coverage since inception
Total Number availed loans Percentage coverage
Members 53,94,783 17,10,007 31.6%
SHGs 5,28,305 2,67,600 50.6%
VOs/SLFs 21,893 16,796 76.7%
MS/TLFs 636 582 91.5%
Efforts are being made to expand coverage of the members by creating awareness among the members on financial services extended by Stree Nidhi to increase their income level through livelihood activities. As some of the institutions i.e. VO/
MS and SLF/TLF are not functioning properly, efforts are being made to improve their functioning in coordination with SERP and MEPMA. District wise disbursement are furnished in table no. 8 a & 8 b of part -B of this report.
Average loan disbursement per member and SHG
8.5. The efforts putforth in meeting the credit needs of members have resulted in increase in the average loan disbursement per member from Rs. 12,761 in 2011-12 to Rs.
27,773 in 2016-17. The average loan disbursement per SHG has increased from Rs.42,267 in 2011-12 to Rs. 94,234 in 2016-17. The increase in average loan disbursement is due to introduction of micro and tiny loans, where loans up to Rs. 1 lakh
Average loan disbursement in VOs/MSs (Amt. Rs.) Type of Institution Average loan
disbursement in FY 2016-17
VO/SLF 10,07,947
MS/TLF 2,40,81,316
Loan Outstanding
8.6. The loan amount outstanding has reached Rs. 1795.75 cr as at the end of March 2017. The year on year growth in loans outstanding was 35% over Rs.1330.12 cr, as at the end of March 2016. The figure shown below point to increasing trend in loan
Loan Outstanding (Rs. Crores)
No. of borrowing members per SHG and Average loan outstanding per member 8.7. The average number of members with loan outstanding per SHG has increased
from three in FY 2013-14 to five in FY 2016-17. The loan outstanding per SHG has increased from Rs.41,310 to Rs.74,409 during the same period.
Trend in Avg. outstanding per member and SHG
Details of SHG members & CBOs with loan outstanding as on 31 March 2017
8.8. The following table shows the details of members, SHGs, VOs/SLFs, and MSs/TLFs with outstanding advances as on 31 March 2017.
(Rs.Cr.)
Nos with loan outstanding Average Loan outstanding
Members 11,98,520 14,985
SHGs 2,41,262 74,440
VOs/SLFs 15,689 11,44,113
(Amt. Rs.)
Product wise Credit Flow
8.9. Stree Nidhi has three types of loans namely general loans, micro loans and tiny loans to meet varied credit needs of members. General loans are utilized to meet both productive as well as consumption needs and micro, tiny loans are utilized for taking up livelihood activities.
In FY 2016-17, micro and tiny loans availed were to the tune of 25% of the total disbursement, by 65,248 members.
Product wise loan disbursement in FY 2016-17 (Rs. crores)
Dairy Financing
8.10. Thrust was given on financing dairy owing to its predominant role in providing gainful employment in the villages in the year 2016-17. A total of Rs. 58.66 crores was
Purpose of Loan
8.11. The purposes for which SHG members have utilized loans are classified into two broad categories – Income generation activities (IGAs) and consumption purposes.
Income generation activities (IGAs) are further classified into agriculture, activities allied to agriculture and micro-enterprises.
The share of loans availed for IGA activities stands at 87% of the total disbursement in FY 2016-17. District wise purpose wise disbursement are furnished in table no. 10 a
& 10 b of part -B of this report.
Loan utilization since inception (Rs. Cr.)
Social Category wise Credit Flow
8.12. Stree Nidhi has ensured that the members in PoP category have accessed loans in proportionate to total members. This has resulted in adequate credit flow to the PoP members. The Social Category wise disbursement of loans for the year 2016-17
8.13. District wise Social Category wise disbursements are furnished in table 10a & 10b of Part- B of this report.
(Rs. Cr)
9.1. Stree Nidhi has a robust five tier monitoring mechanism to ensure timely monitoring of progress made under key business parameters and to maintain industry bench marks consistently.
Head Office Level
9.2. A separate Monitoring Unit has been established at HO headed by a Deputy General Manager for monitoring performance of districts and to take required follow up measures on a regular basis. All key parameters viz. loan requests, disbursement, savings, repayment of loans and performance under BC activities etc., are monitored based on MIS available in web portal. The performance is also being reviewed with Zonal / Regional Managers at regular intervals to take required measures and improve the performance.
District level
9.3. The progress made is closely monitored district wise and reviewed by the District Rural Development Officer, DRDA; Project Officer, ITDA and Project Director, MEPMA on a regular basis in co-ordination with Zonal
and PDs, MEPMA are provided logins to access MIS pertaining to the area under respective jurisdiction for monitoring. Stree Nidhi review committee meetings are convened at quarterly intervals under the chairmanship of the District Collector to dicuss the issues and take necessary action.
Mandal / TLF level
9.4. The staff of Stree Nidhi, SERP and MEPMA play a key role in facilitating needy members to avail financial services from Stree Nidhi at grass root level and repayment thereof. Stree Nidhi has also positioned staff in the cadre of Managers / Assistant Managers for monitoring activities in a cluster of mandals depending on the volume of loans. The staff of SERP, MEPMA and Stree Nidhi visit MS/TLFs and VOs/SLFs on a regular basis and take necessary steps to address issues at field level to achieve desired performance under all parameters.
All the staff at mandal and TLF level can access data / MIS through logins for their regular monitoring.
In the monthly meetings of MS/TLF, review of Stree Nidhi performance is one of
Robust Monitoring Mechanism – A Key Element
Chapter - 9
facilitating delivery of financial services to the members of SHGs. In the EC meetings of VOs/SLFs, performance of Stree Nidhi activities are reviewed as one of the agenda items for discussion. VO/SLF Office Bearers are oriented on Stree Nidhi services from time to time to propagate the same among the members of SHGs.
At SHG level
9.6. In periodical meetings, SHGs review utilisation of available credit limits, credit needs of members, repayment of loans, savings etc.,
Stree Nidhi Resource Persons (SNRPs) 9.7. Community is involved in propagation and monitoring the services of Stree Nidhi.
One or two suitable SHG members from EC members of VOs/SLFs were identified as Stree Nidhi Resource Persons (SNRPs) in MS/TLF having reasonable volume of business and these SNRPs are trained on all aspects of Stree Nidhi. Their services are also utilised to create awareness among the members and in addition SNRPs visit VOs/
SHGs and extend hand holding support to ensure credit flow to the needy, proper documentation, end use, repayment and mobilisation of savings etc. Presently, there are 215 SNRPs, extending their services in the field. They are paid performance linked service charges to compensate for their services.
10.1. It has been 6 years since establishment of Stree Nidhi and over a period it evolved and put in place various systems and controls to ensure adherence to the guidelines and to bring transparency. One of the tools adopted was Social Audit aimed at public scrutiny of operations of Stree Nidhi at VO/
SLF and SHG level.
10.2. For conducting Social Audit effectively, Stree Nidhi is utilising the services of TSSAAT and CARPs who are well trained.
After conducting Social Audit, observations made by Auditors are placed before Grama Sabha so as to make them aware of deviations in procedures or fraudulent transactions and to take necessary remedial measures.
10.3. Social Audit of Stree Nidhi operations at VOs/SLFs has brought instances of lapses in documentation, misutilisation of loans, equal distribution of loan by all SHG members in case of general loans, delay in settlement of claims in case of death of member etc. Stree Nidhi is taking required remedial measures to rectify the deviations observed and taking steps to recover the amount involved in misappropriation.
Social Audit as a Tool to bring Transparency
Chapter - 10
Social Audit – Year wise coverage of VOs/SLFs
Total Year
No of VOs/
SLFs covered by
TS-SSAAT
No of VOs/
SLFs covered by
CARPs
2014-15 31 69 100
2015-16 97 717 814
2016-17 1006 337 1343
Total 1134 1123 2257
Grama Sabha on Social Audit of Stree Nidhi activities by TS -SSAAT DRPs
(Rs. Cr)
S.No. Particulars 31.03.2016 31.03.2017
1 Share capital from State Government 43.52 43.52
2 Share Capital from MS / TLF 47.37 47.89
3 Grants from State Govt. 55.57 55.57
4 Undistributed Profit and Reserves 73.68 110.07
5 Own Funds (Share Capital, Reserves, 482.11 612.73
Core Deposits and other Reserves)
6 Deposits 317.97 431.40
7 Outstanding Borrowings 824.34 1152.23
8 Loans outstanding 1330.12 1798.46
9 Loans disbursed 1148.35 1353.62
10 Gross NPA% 0.42 0.89
11 Gross NPA 5.60 16.03
12 Loan loss provisions 13.33 18.08
13 Net NPA 0 0
14 Net profit 37.25 49.96
Own Funds
11.2. Own funds have increased to Rs.612.73 cr in FY2016-17 as compared to Rs.482.11 in FY 2015-16 with a healthy growth rate of 27%. The increase is mainly due to increase in core deposits by Rs.93.72 cr during the year.
Asset Quality
March 2016 to Rs.1798.46 cr at the end of 31st Mar 2017 registering a year on year growth of 35.21%. The non- performing assets stood at Rs. 16.03 cr. constituting 0.89% of the total loans outstanding.
Provision made towards NPAs as on
Financial Performance
Chapter - 11
11.1. Highlights on Financial performance in respect of key parameters for the last two
financial years are mentioned below
