New Delhi: Indian Bank, the pioneer among banks in introducing Self Help Groups and Financial Inclusion Project in the country plans to open four more micro-credit branches in New Delhi, Bangalore, Bhubaneswar, and Pune.

Micro-credit is generally referred as the provision of very small value loans also called the micro-loans to small entrepreneur, unemployed and others who are not considered as bankable. In this particular case Indian Bank provides micro credit to self help groups. Self-Help Group (SHG) in India is a very small voluntary association of poor people. The group may contain people from the same socio-economic background. The purpose of a SHG is to solve their common problems through mutual and self help. SHG promotes savings and other small entrepreneurial projects among its members. Normally the members in a SHG is below twenty.

Indian Bank presently has eight micro-credit branches. These branches are also equipped to provide non-credit services like counseling, marketing and training assistance besides the micro-credit services. This step by the bank is a part of the urban poverty alleviation and providing help to poor entrepreneurs.

In this effort by Indian Bank, 12,396 Self Help Groups were assisted with Rs.121.28 crore during the quarter increasing the outstanding credit to Rs.601.12 crore as on 30.06.2007 from Rs.575 crore as on 31.03.2007. 5938 new SHGs were linked during the quarter.

The special branch for provision of micro-credit in Metro and Urban centers are called Microsate Branch by the Indian Bank. The Bank has opened six Microsate branches one each in Tamilnadu, Bihar, Andhra Pradesh,West Bengal, Kerala and Gujarat. Six more branches were to be opened shortly in Orissa, Karnataka, Maharashtra, New Delhi and Assam and also one in Tamilnadu in addition to the existing one in Chennai. With the current declaration of opening of four such branches in Bhubaneshwar, New Delhi, Bangalore and Pune, the remaining states will be getting their share of such branches very soon.