Performance of SHGs in the Backward Districts of West Bengal

Abstract

One of the escape routes for the low-level development trap in the backward regions of India has been the formation of self-help groups (SHGs) and the provision of microfinance to the SHGs. This chapter analyzes the performance of such SHGs in some of the economically backward districts of West Bengal based on primary data collected from some sample drought-prone and non-drought-prone blocks of Paschim Medinipur and Bankura districts of West Bengal. The performance of sample SHGs in these drought-prone areas has been measured by (1) per-capita deposit, (2) per-capita credit, (3) credit-deposit ratio, and (4) repayment-credit ratio. An intra-regional difference in this performance has been observed in SHGs functioning in drought-prone and non-drought-prone blocks within the backward districts. Further, applying Probit model, it is observed that the SHG can climb easily upon the performance ladder with younger and educated members, greater percentage of members above the poverty level, better utilization of credit received, and so on.