Social Performance of Agency Banks and SHG

Abstract

Agency Banks under SHG-BLP, with their promotional stepping towards, socio-economic sustainability, engage in social performance in modes of financial inclusion, women empowerment, poverty alleviation and development and promotion of new Micro Enterprises (MEs) with the intention to generate SRI in India. In promoting social performance through savings-credit linkage with SHG and credit linkage with MFls, the Agency Banks have to consider so many constraints which obstruct their activism towards social sustainability and thus put a question mark on their acceptance and application of SRI principles in practice. Under SHG-BLM, the Agency Banks have to bear tremendous pressure to create financial inclusion (though sometimes is not taken importantly) for which they have to adopt liberal policy in loan financing without verifying the creditworthiness of the members of SHG and also their genuine motive for utilizing the granted fund in their financial practices.