Title: Self-help groups in India: effectiveness of government support programs towards reducing NPAs

Authors: Ajay Kumar Patel; Shikha Jalota

Addresses: Institute of Management Studies, Grand Trunk Rd., Industrial Area, Lal Kuan, Ghaziabad, Uttar Pradesh 201009, India ' GNOIT Institute of Management Studies, Greater Noida, 201301, India

Abstract: Self-help groups since 1992 have been started with a view to link Indian rural women with savings and credit facilities to meet their needs, generate earnings for their livelihood and be empowered. The study examines the effectiveness of training and capacity building initiatives in reducing non-performing assets (NPAs). The independent variables are the various measures taken up by NABARD for training and capacity building to promote efficiency in the working of self-help groups (SHGs). The dependent variable for the study is non-performing assets (NPAs) arising from SHGs. This study is based on secondary data and e-views are being used as the tool for data analysis. Data for the last six years for six different regions of India have been taken for the study. The paper considers nine independent variables for the study. The panel data taken for the study is analysed using fixed effect model and random effect model. Findings of this study reflect the measures taken by the GOI which have significant impact on NPAs. The research gap has been recognised from the literature review and the results are well supported by the panel data analysis.

Keywords: self-help groups; SHGs; non-performing assets; NPAs; SHG-BLP; microfinance; NABARD; India.

DOI: 10.1504/IJGFI.2023.131490

International Journal of Governance and Financial Intermediation, 2023 Vol.1 No.4, pp.287 - 303

Received: 19 May 2022
Accepted: 18 Oct 2022
Published online: 14 Jun 2023 *

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