Date:12/08/2004 URL: http://www.thehindubusinessline.com/2004/08/12/stories/2004081202501900.htm

Back IOB keen to finance self-help groups

Our Bureau

Visakhapatnam , Aug. 11

Indian Overseas Bank is keen on extending financial assistance to self-help groups, Mr S.C. Gupta, Chairman and Managing Director, has said.

He was addressing a meeting of self-help groups from five coastal districts here on Wednesday after disbursement of loans to the groups.

He said his bank had given loans to 17,800 groups in Andhra Pradesh and Tamil Nadu. "The funds should be used productively by the groups and the amount should not be used for lending at higher interest rates again. Some of the groups are resorting to the practice,'' he said.

Mr P. Govinda Rao, Additional Project Director, District Rural Development Agency, said the recovery rate was good in the State.

Mr G. Sarvesh, Deputy General Manager, Nabard, said 16,000 SHGs had been given Rs 60 crore till now in the Visakhapatnam district.

Mr A.J. Prasad, Senior Regional Manager, said the bank had disbursed Rs 1.07 crore to the SHGs and farmers from Visakhapatnam and Vizianagaram districts on Wednesday.