Indian Bank’s Journey in Empowering Women SHGs is Remarkable

Bank Disburses Over ₹1,500 Crore to Women SHGs in Two States; National Lending Target Set at ₹20,000 Crore

What happens when banking goes beyond counters and enters the lanes of rural women-led groups? That’s exactly what Indian Bank has been doing in recent years.

With growing outreach and support to women Self-Help Groups (SHGs), the bank is not only funding micro-enterprises but also reshaping rural finance in India.

Loans Worth Over ₹1,500 Crore Disbursed to Women SHGs in Two States

Indian Bank recently made headlines for sanctioning loans worth ₹1,011 crore to more than 3,000 women-only SHGs in Tamil Nadu alone. The credit was extended as part of a mega outreach programme, conducted under the guidance of the Department of Financial Services (DFS). 

This event was not limited to Tamil Nadu. In another drive, held in Odisha, Indian Bank sanctioned ₹509.91 crore to 9,961 SHGs. These back-to-back large-scale credit camps reflect the bank’s sharper focus on women-led community financing.

The economic narrative goes beyond numbers. According to the Ministry of Finance’s June 2024 Financial Inclusion Report, Indian Bank now stands as the fourth largest public sector bank in terms of SHG credit volume, with a total SHG loan portfolio of ₹22,224 crore.

Here’s a breakdown of current outreach:

These outreach camps were supported by officials from DFS and the National Rural Livelihoods Mission (NRLM), showing direct government involvement in expanding credit access.

Bank Targets ₹20,000 Crore in SHG Lending for FY 2025–26

To move the needle further, Indian Bank has set an internal national target of ₹20,000 crore in SHG credit disbursement for the current financial year. This move aligns with the Indian government’s SHG-Bank Linkage Programme, under which banks lend to SHGs without requiring collateral.

As of April 2025, data from the Rural Development Ministry shows more than 10.05 crore women are part of 90.86 lakh SHGs under DAY-NRLM. This makes India’s SHG model the biggest globally. Indian Bank plays a key role by lending to these groups, helping boost incomes and rural employment.

Here's the current picture of SHGs in India:

This makes the bank’s ₹20,000 crore target timely and practical, not just ambitious.

Lakhpati Didi Scheme: Building ₹1 Lakh Incomes for Women

Indian Bank’s lending strategy is closely aligned with the government’s “Lakhpati Didi” mission, which aims to help women SHG members earn at least ₹1 lakh per year. According to a February 2025 report by the Ministry of Rural Development, over 1 crore women have reached this income level.

Odisha alone has close to 17 lakh Lakhpati Didis, making it one of the most successful states in implementing this model. Nayagarh district, in particular, showed a success rate of 98%, making it a case study in rural financial transformation.

Below is a glance at the Lakhpati Didi performance:

Each Lakhpati Didi is supported by capacity-building programmes such as skill training, seed capital through community investment funds, and revolving funds, all monitored under NRLM.

Building Financial Infrastructure at Grassroots

What sets Indian Bank apart is its role in supporting last-mile infrastructure through its partnership with NRLM. As of March 2025, more than 45,000 “Banking Correspondent Sakhis” have been trained and deployed. These are women from SHGs who serve as the financial link between rural banks and the village-level customer.

The 2024 Rural Inclusion Metrics Review published by the Ministry of Rural Development notes that over ₹9.71 lakh crore in bank loans have been disbursed to SHGs across India since 2013, of which ₹48,290 crore came through community-level fund support.

The table below shows the financial scale:

This system reduces dependence on informal lending, creates rural jobs, and connects unbanked villages with formal finance.

Conclusion 

Indian Bank is playing a key role in India’s drive for gender-based rural financial empowerment. By offering not just credit but also working closely with government schemes and outreach programs, the bank is helping women-led micro-businesses grow on their own, moving away from models that depend only on subsidies. 

With clear goals for FY 2025–26 and strong support from the expanding Lakhpati Didi network, Indian Bank’s approach is shaping up to be a model that other public sector banks could follow in the SHG space.

As India shifts from just economic inclusion to also building strong rural livelihoods, Indian Bank’s SHG efforts show how banking can support real change at the grassroots. Its approach blends financial services with training, guidance, and long-term planning, making sure women are not only included in the system but also empowered to thrive within it.
 

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