Self-Help Group–Bank Linkage Programme in India: Trends, Regional Variations and Institutional Performance

Among various initiatives, the Self-Help Group–Bank Linkage Programme (SHG-BLP), launched by NABARD in 1992, is the world’s largest microfinance movement aimed at promoting financial inclusion. It has proved to be one of the key programmes aimed towards socio-economic upliftment of rural as well as urban poor. So, this study tried to analyse the performance of SHG-BLP and also regional disparities in SHG-BLP implementation across Indian states using secondary data and different analytical tools. The results indicate substantial growth in key financial indicators—savings, loan disbursement, outstanding credit, and non-performing assets—over time, with Regional Rural Banks (RRBs) outperforming other financial institutions. The Eastern region emerged as the fastest-growing area in terms of SHG activity. The regional as well as institutional disparity in SHG-BLP performance need to be addressed through a more focused and inclusive approach.