Public sector lender Indian Bank has announced an ambitious plan to disburse ₹20,000 crore to Self-Help Groups (SHGs) across India during the financial year 2025–26. The initiative, part of a nationwide credit outreach programme led by the Department of Financial Services (DFS), reinforces India’s commitment to women-led development and inclusive economic growth.
The announcement was made during a Mega SHG Credit Outreach Programme held in Bhubaneswar, where Indian Bank extended sanction letters to 9,961 SHGs, amounting to over ₹509.91 crore in credit assistance. These funds will support grassroots-level women entrepreneurs in launching or scaling small businesses, ensuring a sustainable livelihood pipeline across rural and semi-urban India.
Credit as a Catalyst for Women-Led Growth
The SHG financing model has been instrumental in unlocking economic participation among rural women, many of whom lack access to traditional banking. By setting a ₹20,000 crore target for FY26, Indian Bank is aligning itself with the national mission to empower one crore SHG women with formal credit.
The presence of DFS Secretary M Nagaraju, Indian Bank MD & CEO Binod Kumar, and Executive Director Mahesh Kumar Bajaj at the outreach event highlights the strategic importance of this initiative. It also reaffirms Indian Bank’s position as a key partner in implementing the government’s financial inclusion agenda.
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Aligning with Viksit Bharat 2047 Vision
This outreach programme contributes meaningfully to the Viksit Bharat 2047 roadmap, a long-term vision that prioritises inclusive growth and the upliftment of women at the grassroots. SHGs supported through this programme are likely to engage in sectors such as handicrafts, agri-processing, rural retail, and services—paving the way for microenterprise expansion and job creation in underserved regions.
Access to timely and adequate financing allows SHG members to improve creditworthiness, expand operations, and achieve financial independence. With focused institutional support, many of these collectives have the potential to evolve into formal MSMEs, contributing to India’s rural economic base.
A Boost for India’s SHG Ecosystem
As India looks to strengthen its microfinance ecosystem, public sector banks play a crucial role in mainstreaming informal groups into the formal financial system. Indian Bank’s disbursal strategy for FY26 not only supports existing SHGs but also encourages the formation of new collectives under government-linked livelihood missions.
For SMEs, rural entrepreneurs, and support agencies, this move opens opportunities for collaboration, supply chain integration, and shared development goals.