Public sector lender Bank of Maharashtra has launched a special branch dedicated towards lending to self help groups (SHGs).
The inaugural ceremony had the presence of deputy governor of Reserve Bank of India, Subir Gokarn.
Gokarn emphasized on the need for financial institutions to create space for lending to self help groups in a responsible manner and guiding them to produce goods benefitting the society.
"This three-pronged approach would help the very purpose of any initiative for financial inclusion of the unbanked," Gokarn said.
Gokarn also highlighted the importance of these SHGs in women empowerment.
The new branch will cater to aspects like creation of new SHGs, opening accounts for them, lending as well managing their credit along with assistance in marketing of their products.
Chairman and managing director of the bank, A S Bhattacharya, said the new branch would cater to around 1,500 SHGs and would be able to sanction loans worth Rs 150 crores by March 2012.