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A recent innovation in the Indian banking system is the emergence of Small Finance Banks (SFBs). These banks are expected to carry forward the task of financial inclusion by providing basic banking services and credit services with a differentiated model. The challenge of these banks is to meet the objectives of constructing a low-cost liability portfolio and an affordable lending structure supported by robust technology. This paper evaluates the performance of five SFBs in addressing these challenges since their inception. The study is based on secondary data, and applies the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method, a multi-criteria decision analysis technique, for overall ranking of the banks based on their performance. The study finds that SFBs have concentration risk on assets and liabilities side of the balance sheet. On the liabilities side, they have low current and savings account deposits and rely heavily on bulk deposits, while on assets side, the share of unsecured microfinance loan is disproportionately large. This anomaly needs to be corrected to meet the objectives envisioned by the Reserve Bank of India while conceiving the idea of SFBs. [ABSTRACT FROM AUTHOR]

Silicosis is a progressive interstitial lung disease, characterized by shortness of breath, cough, fever and bluish skin; it can present in three different forms: acute, accelerated and chronic. (1) It [...]

This case study tracks the unique IGFS model of financial inclusion, which focusses exclusively on promoting financial products and services for the poor, based on needassessment, but not with the objective to achieve a business target. The aim is to ensure an overall well-being of the beneficiaries through wealth creation following a demand-based approach. The model has a basket of products, viz. savings, credit, insurance, pension schemes and money transfers for the poor, as defined in the scope of financial inclusion by the Reserve Bank of India. Loans are given through Joint Liability Groups (JLG) with an emphasis on ensuring that quality groups are formed. In order to achieve this objective, training of the members of the Joint Liability Groups prior to loan disbursement is compulsory so that they understand their rights and obligations in its totality. Unlike other microfinance institutions, the activities of IGFS were not confined only to distribution of micro-credit but on all products leading to the overall welfare of the beneficiaries. The model is currently going through a turbulent phase because of intense competition, changing service expectation of the clients, pressure to increase volumes for sustainability and managing the balance between ensuring group quality with a quick turn-around time period. Competition has adversely affected the willingness of the JLG members to enforce the contractual norms among the peers in case of default. [ABSTRACT FROM AUTHOR]

MahilaAbhivruddhi Society (MAS), a Non-Government Organisation based in Hyderabad, works for mobilization of the rural poor to form collectives for thrift and savings. It has been working in the district since 2001. The Self Help Groups which they formed grew in number and were federated into Primary Level Federations (Village Organizations) and Secondary Level Federations (Mandal Samakhyas). While MAS was busy in social mobilization and bringing about stability for the SHGs, the checks and balance aspects had taken a backseat, until a notice was received from the Registrar of Cooperatives to submit the annual reports and to conduct regularly the Annual General Meetings of the SHGs. This case study tracks how, despite all the constraints, they put in place a self-regulatory system within the SHG movement and how it transformed the SHGs from a minimum regulated body to highly successful self-regulated units. The Paryaveksham Samakhya, which brought about this transformation, was recognized as a National Resource Organization by the National Rural Livelihood Mission andwas invited to other states to strengthen the SHG movement. [ABSTRACT FROM AUTHOR]