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VOL. XXXIX NO. 30 PAGES 48 NEW DELHI 25 - 31 OCTOBER 2014 ~ 8.00

Central Coalfields Limited requires 527Security Guard, Assistant RevenueInspector and Accountant

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Bengal with 15% are the top states in clientreach. From the North Eastern States thestate of Assam had 4% client reach of theMFls in the same period.The top states in terms of loan disbursementare West Bengal, Tamil Nadu, Karnataka,Maharashtra and Uttar Pradesh for the Q1 offinancial year 2014-2015 .These statesaccounted approximately 60% of disburse­ments (loan amount disbursed) by MFls.Role of indigenous institutions in provid­ing microfinance and social securityThere are several indigenous institutions inNorth Eastern States that have played a piv­otal role in providing microcredit and socialsecurity to the members. These institutionshave been in existence since many yearsand are a part of the culture of the place.These indigenous institutions are primarilyRotating Saving and Credit Associations(RoSCAs) ego Marups in Manipur andAccumulating Saving and Credit Associations(ASCAs) ego Sonchay, Somobay, Got inAssam. Other institutions such as Namghars,Pujaghars, Shinglups, and Mahari mainlyprovide social security in emergency situa­tions such as death and the funds are alsoutilized in the common welfare of the com­munity. A brief description of these institutionsare as under:• Namghars and Pujaghars which are

found in Assam. A compulsory deposit ofa fixed amount by each household ismade to the Namghar (prayer hall). It islent out at zero or lower than marketinterest rates to address emergencies.

• Marups in Manipur are RotatingSavings and Credit Associations

Continued on page 48

penetration (DP) it scored 36.5 in 2011 asagainst 27.7 in 2009.Looking at the coefficient of variation in finan­cial inclusion across districts again NorthEastern Region lags behind. It is 0.44 in 2011as against 0.46 in 2010 and 0.48 in 2009.This is where the role of MicrofinanceInstitutions assumes strategic importance.Status of North Eastern States inMicrofinanceAs per the data available from theMicrofinance Institutions Network (MFIN) theregional distribution of Gross Loan Portfolio(GLP) as on 30th June 2014 suggests thatshare of eastern region in the GLP is 27%,south is at 33% and west and north at 20%.Among the North eastern Region Assamstands at 6% of the share in the Gross Loanportfolio (GLP).Manipur with 47.0% ,Assamwith 9.1 % and Sikkim with 5.0% from theNorth Eastern States are among the stateswith the highest growth rates along with otherstates like Himachal Pradesh with 39.5%Jammu and Kashmir with 16.2% and Delhiwith 13.1% in the Q1 financial year 2014­2015 over Q4 financial year 2013-2014.As of 30th June 2014, MFls reached over26.5 mn clients in India. Compared with Q1financial year 2013-2014, clients grew by23%. The state wise distribution of the clientsshows that Tamil Nadu with 16% and West

(pg 32-35)

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Last Date: 31-10-2014

Steel Authority of India Limited,Burnpur requires 151 Jr. ManagerGrade E-1, Dy. Manager Grade E-3,Assistant Manager Grade E-2 andSpecialists/Medical Officer etc.

(pg 30-31)Last Date: 3-11-2014

I HPCl IHindustan Petroleum CorporationLimited, Mumbai requires 100Technicians and Craftsman (pg 24)Last Date: 10·11·2014

JOB HIGHLIGHTSI UPSC IUnion Public Service Commissiondeclares the result of Civil Services(Preliminary) Examination, 2014

(pg 9-19)

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Microfinance is the provision of financialservices to low-income clients or soli­

darity lending groups including consumersand the self-employed, who traditionally lackaccess to banking and related services. Froma global perspective micro finance hasentered a sustainable phase after the globalfinancial crisis. It has also expanded over theyears. India also has woken up to recognizethe role of Microfinance. As of 30th June2014, aggregate gross loan portfolio (GLP) ofMFls in India stood at Rs 261.5 bn (excludingnon-performing portfolio (PAR> 180 days) inAndhra Pradesh which is roughly Rs 28 bn),growth of 44% over Q1 financial year 2013­2014.The medium size MFls (GLP > Rs 1-5bn) registered highest growth of 47% over Q1financial year 2013-2014.The role of microfinance in financial inclusionis recognized globally. In India as well,Microfinance Institutions (MFls) have consid­erably bridged the gap in financial inclusion.One of the financially excluded region ofIndia is the North Eastern part comprising ofthe eight states of Assam, ArunachalPradesh, Meghalaya, Mizoram, Nagaland,Manipur, Tripura and Sikkim. The region ismade up of diverse ethnic groups, cultures

~==============~ and languages. In terms of banking, theregion is the most financially excluded part inthe country. The finding of the CRISILINCLUSIX provides that North Eastern stateslag behind other states in India. The Northeastern region scores 28.5 in INCLUSIX2011 as against 26.5 in INCLUSIX 2010 and23.8 in INCLUSIX 2009.ln terms of branchpenetration (BP) North eastern Regionscored 29.9 in 2011 as against 27.7 in 2009,for Credit Penetration (CP) it scored 21.6 in2011 as against 17.9 and in terms of deposit

48 www.employmentnews.gov.in Employment News 25·31 October 2014

MICRO FINANCE IN ...Continued from page 1

(RoSCAs), groups of people who poolmoney weekly or monthly and then dis­tribute it to the RoSCA members in turn.The turns are decided by mutual con­sent, lottery, seniority etc. within thegroup.

• Sonchay, Somobay, Samiti, Got (inAssam) are Accumulating Savings andCredit Associations (ASCAs). These aresavings based groups of generally 25­40 where members deposit monthlysavings of a fixed amount into a centralpool, from which money is lent out tomembers and non-members.

• Shinglups are prevalent in the Manipuricommunity of the valley region ofManipur. They are religious boards in

each locality which take care of theexpenditures incurred during death cer­emonies.

• Mahari Associations are welfaregroups prevalent amongst the Garoclan in Meghalaya. Contributions aremade by all households of the clan, theamount being fixed by the committee,headed by the Nokma (the village head­man). Mahari fund is used for the gen­eral welfare of the clan, for marriages,death ceremonies, emergencies, etc.

Future growth of microfinance in NorthEastern StatesCompared to the rest of India the microfi­nance movement started late in the NorthEastern States. MFls have a network of10,074 branches with over 46,000 loan offi­cers across 30 states and union territories in

India. Branches of MFls grew by 9% com­pared with Q1 financial year 2013-2014.West Bengal, Tamil Nadu, Andhra Pradesh,Karnataka and Maharashtra are top statesin terms of number of branches.Maharashtra, MP, Tamil Nadu, Gujarat andKarnataka have the highest concentrationof MFls.During Q1 financial year14-15, MFls dis­bursed over 6.3 mn loans worth Rs 94.2 bnacross India. Compared with Q1 financialyear 13-14, number of loans disbursedgrew by 34% and loan amount disbursedby 48%. Average loan amount disbursedper account stood at Rs 14,936. The topMFls of India in terms of loan disbursedduring Q1 financial year 2014-2015 (Rs bn)are Bandhan (25.4), SKS (11.6),Janalakshmi (7.1), Ujjivan (6.7), Equitas

(4.8), Spandana (4.8), Muthoot (3.3),Grama Vidiyal(2.9), GFSPL(2.8),Share(2.7).Among these the MFls workingin some of the states of North East are :­In Assam there are 6 MFls viz. Arohan,ASA, Bandhan, Share, Ujjivan and VFS.lnMeghalaya 3 MFls viz. Bandhan, BSFLand Ujjivan are present. In Sikkim 2 MFlsviz. Bandhan and BSFL are present. InManipur and Mizoram there is onlyBandhan which is working. The data sug­gests that there is a need to expand theMFI network in the North Eastern Regionfor socio economic development at par withthe rest of the country.(The author is Associate ProfessorDepartment of Management Institute ofInnovation in Technology and ManagementE-mail:- chiefeditor@cpmr.org.in)