The National Bank for Agriculture and Rural Development
(NABARD) has awarded Vijaya Bank the first prize (indirect
category) in the credit linkage to self help groups (SHGs),
for the year 2003-2004. M S Kapur, chairman and managing
director of Vijaya Bank received the award from R V Deshpande,
the Karnataka minister of co-operation.
at the ceremony, Kapur said that Vijaya Bank has credit
linked 3,500 SHGs in Karnataka during the year 2003-04
with a financial assistance of Rs8 crore. Cumulatively,
bank has so far credit linked 13,000 SHGs, of which 8,600
SHGs are in Karnataka. Recovery of loans granted to SHGs
is as high as 95 per cent.
also suggested that a regulatory body should be set up
to co-ordinate lending to rural sector and also requested
NABARD to lower the interest rates on refinance to enable
banks to increase credit
flow to rural sector substantially. Vijaya Bank has received
a similar award for its operations in Andhra Pradesh for
the year 2004.