On a warm afternoon at Indian Bank’s Microsate branch in Chetpet, Chennai, the usual quiet of a bank is replaced by a lively energy. Conversations, laughter, and a sense of purpose fill the space—driven by women charting new financial paths.

Among them is 44-year-old P Uma from Otteri, beaming as she talks about her booming business selling handmade soaps and herbal hair oils. Once buried under ₹5 lakh in debt to moneylenders, Uma joined a Self-Help Group (SHG) a decade ago. Today, she has cleared her dues, funds her children’s education, and dreams of expanding her product line.

Nearby, Hemalatha, 35, from Kolathur, shares her journey. A former call centre employee, she left her job to care for her ailing child. With SHG support and timely credit from Indian Bank, she now runs a thriving online business selling jewellery and sarees.

Behind these individual journeys lies a transformative movement: the SHG Credit Programme of Indian Bank. By providing accessible, low-cost credit to women-led groups, the bank is helping thousands of families increase their monthly incomes, meet essential needs, and gradually lift themselves out of economic vulnerability.

In a rapidly transforming India, the Self-Help Group (SHG) movement stands as a beacon of grassroots empowerment—and Indian Bank is at its heart. From participating in a World Bank pilot in Tamil Nadu in 1989 to embracing SHG lending following RBI’s 1992 guidelines, the bank has steadily grown its outreach.

In just five years, its SHG loan book has surged from under ₹6,000 crore to ₹22,000 crore—making it the fourth-largest public sector bank in SHG financing.

“This isn’t just about giving loans,” says Shiv Bajrang Singh, Executive Director at Indian Bank. “It’s about empowering women, supporting enterprises, and helping communities stand on their own.”

With over 5 lakh SHGs in its portfolio, Indian Bank has a strong presence across southern and eastern India—regions rich in agriculture and micro-enterprises. The bank now aims to extend its SHG reach to underserved states like Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh.

At a recent Mega SHG Credit Outreach Programme in Bhubaneswar, the bank sanctioned over ₹509.91 crore to 9,961 SHGs. Attended by M. Nagaraju, Secretary, Department of Financial Services, Union Ministry of Finance, and Indian Bank’s MD & CEO Binod Kumar, the event underscored the strategic importance of SHG lending in driving local entrepreneurship.

For FY2025-26, Indian Bank has set an ambitious ₹20,000 crore SHG credit target. By 2027, it aims to grow its SHG book beyond ₹30,000 crore—through deeper rural penetration and entry into new regions.

Key pillar

A key pillar of this growth is alignment with government initiatives like One District, One Product, which fosters locally rooted, scalable enterprises.

“We’re not just financing businesses—we’re helping build sustainable ecosystems,” Singh notes.

While SHGs traditionally function as collectives, Indian Bank is supporting a transition to individual financial empowerment. Members are now being encouraged to open Jan Dhan accounts and access personalized financial tools like insurance and investment products.

As members’ ventures mature—from dairy and vegetable sales to home manufacturing—individual banking becomes essential. The bank ensures these transitions are carefully assessed and supported.

To better serve SHG clients, Indian Bank has launched Microsate branches—dedicated SHG service outlets equipped with feeding rooms, play areas, and group spaces. These are designed to be inclusive, safe community hubs for women entrepreneurs. Presently, the bank has 56 such Microsate branches across the country.

Beyond credit, Indian Bank is rolling out CSR initiatives in cities, offering free medical and emergency aid. SHG members are also covered under insurance schemes like Pradhan Mantri Suraksha Bima Yojana and Jeevan Jyoti Bima Yojana, and benefit from zero-balance accounts and RuPay cards—removing financial barriers.

The SHG model has flourished in southern and eastern India, where community cohesion, agriculture, and women-led micro-businesses are prevalent. Migration of men for work has further pushed women to the forefront of financial and social leadership. Indian Bank is partnering with NRLM (National Rural Livelihood Mission) and NULM (National Urban Livelihood Mission) to scale SHG promotion and capacity-building across the country, from the village to the state level.

Some SHGs have evolved into registered enterprises, selling on Amazon, Flipkart, and even exporting products globally—thanks to relaxed RBI rules for small-value consignments. These women are now ambassadors of rural innovation. Under the “Lakhpati Didi” scheme for SHG members—a recent initiative of the Government of India for assisting women-led enterprises—Indian Bank has so far assisted more than 18,000 units.

With SHG lending, Indian Bank sees a powerful opportunity to drive entrepreneurship, empower women, and support rural development—aligned with national priorities.

“We’ve seen women with no financial identity become entrepreneurs,” says Singh. “That’s the story we’re proud to write—because real progress happens when every individual gets a fair shot at building their future.”

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Published on June 11, 2025