New Delhi: Continuing its endeavor to bring banking benefits to urban poor who have formed Self Help Groups (SHGs), Indian Bank has decided to open three more Microsate branches at Bangalore, Pune and Bhubaneshwar this month. This will take the total number of Microsate branches operated by Indian Bank to 12.

One of the front-runners in promoting the SHG movement in India, Indian bank has adopted a distinctive approach for the rural and urban poor. For rural poor, Indian bank, started  a women development project on the lines of SHGs in Dharampuri District in 1989, which is presently run by 921 branches across the country. This project has successfully provided credit of Rs. 1665.75 crores to more than 2.30 lakh groups.

Indian Bank is aware of the special needs of urban poor formed as SHG and appreciates their relatively high credit requirements as compared to rural ones. To serve this purpose the bank launched an exclusive microfinance branch called the Microsate Branch at Chetpet in Chennai. The specialized Microsate branch was visualized as a one stop shop for all the needs of urban poor organized into SHGs. This effort got tremendous response and the bank opened seven more such branches at Patna, Vijayawada, Hyderabad, Nadiad (Ahmedabad), Kollam (Kerala) ,Kolkota, Tiruvanmiyur (Chennai) during first half of the current fiscal 2007-08.

Finance Minister, P Chidambaram inaugurated the ninth Microsate branch of Indian Bank at New Delhi during December. This branch will cater to the needs of the SHGs formed in the National Capital, besides financing microfinance institutions or Non-Government Organizations (NGOs) for providing financial assistance to to SHGs  promoted by them.

The bank also provides specially designed loan products like “Vidya Shoba” – an educational loan scheme for the wards of SHGs, “Grihalakshmi” – a Housing loan scheme for SHGs etc. A life insurance scheme called the Janashree Bima Yojana and a health insurance scheme called the Universal Health Care Scheme is also provided by the bank at low premium to the members of SHGs.