Only 36% of credit disbursement target of the SHGs achieved, says West Bengal govt official

The banks have achieved only 36 per cent of the credit disbursement target of the SHGs in the first six months of the current financial year. West Bengal government has expressed serious concern over the alleged reluctance of the banks in meeting the credit disbursement target to the self-help groups (SHGs) during the current financial year of 2021-22.

Kolkata:West Bengalgovernment has expressed serious concern over the alleged reluctance of the banks in meeting the credit disbursement target to the self-help groups (SHGs) during the current financial year of 2021-22.

The state government has expressed its dismay on this issue at the recent State Level Bankers’ Committee (SLBC), West Bengal’s sub-committee meeting on SHG.

The additional chief secretary of the state panchayat & rural development department, MV Rao was present in the meeting. He expressed concern over the fact that the banks have achieved only 36 per cent of the credit disbursement target of the SHGs in the first six months of the current financial year. He pointed out a total of Rs 1258.44 crore of sanctioned credit to 50,139 SHGs are still pending disbursement in different branches till November 2021.

Rao also pointed out that the total accumulated amount for the SHGs under the National Rural Livelihood Mission (NRLM) scheme till that date is as high as Rs 6,030.99 crore.

However, the general manager of SLBC, West Bengal, Sakshi Gopal Saha pointed out that till the end of October the situation has improved by the end of October 2021. According to him, the banks have disbursed Rs 6191.93 crore to 4.03.256 SHGs thus achieving 41.23 per cent of the targeted disbursement.

He further said that the banks have conducted special credit delivery camps during the three months of July, August and September which has helped them in improving the disbursement rate to an extent.

Two banking representatives present on the occasion, Sunil Goyal of Punjab National Bank (PNB) and the Pravakar Sahoo of State Bank of India (SBI), informed that banks cannot always be blamed for this low rate of disbursement. Both of them informed that often SHGs draw only a portion of the sanctioned loan and are reluctant to draw the undrawn amount despite repeated requests from the bank authorities.