IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/wp01854.html
   My bibliography  Save this paper

Community at the Core: A Study of Sarvodaya Nano Finance Limited

Author

Listed:
  • Pathak, Akhileshwar
  • Sriram M S

Abstract

The paper traces the evolution of Sarvodaya Nano Finance Limited (SNFL). At the outset we explore the background of SNFL, the motivation for the promoters to set up the organisation and how it has grown from the time it was taken over by the community trusts promoted by ASSEFA. As a part of the study, we examine the unique legal structure set up for federating the small SHGs that were widely spread out in the areas of its operation. The idea of federating the SHGs was to leverage the dispersed savings and interest earned on the initial donor resources that were made available to the SHGs at their early stages. The aggregation of these dispersed resources into SNFL enables the women SHGs to mobilise funds from commercial banks and specialised MFI lenders, for an accelerated growth of the movement. The paper examines the rationale for having this structure, its vulnerabilities and the possibilities for growth within the given structure. We argue that this is not a structure that can be replicated easily. We also argue that it cannot grow aggressively in the long run, unless some basic design changes are made. The paper also discusses the basic question on how to structure resources that are given by the donor community for the larger benefit of the poor; and when to bring in the individual stakes of the beneficiaries if one were to promote long lasting institutions. The paper also raises critical questions on governance and management. While appreciating the impressive result achieved by ASSEFA and BASIX in getting a community owned professionally managed institution into being, it also raises questions on whether there are inbuilt mechanisms of carrying forward this effectively in future – given the structuring of capital and rights of each of the constituents.

Suggested Citation

  • Pathak, Akhileshwar & Sriram M S, 2004. "Community at the Core: A Study of Sarvodaya Nano Finance Limited," IIMA Working Papers WP2004-10-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp01854
    as

    Download full text from publisher

    File URL: https://web.iima.ac.in/assets/snippets/workingpaperpdf/2004-10-04sriram.pdf
    File Function: English Version
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp01854. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/eciimin.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.