Karnataka Grameena Bank has received the National Award for Outstanding Performance in SHG Bank Linkage 2024-25 from the Union Ministry of Rural Development. The award recognises the bank’s role in rural economic empowerment, especially through credit support to self-help groups (SHGs). It was presented at the National Conference on Financial Literacy and Capacity Building and the 25th Central Level Coordination Committee meeting in Hyderabad.
Recognition for SHG Support
The award marks the bank’s performance in linking SHGs with formal banking services. Such linkage is central to rural credit access, women’s empowerment, and livelihood generation. The bank has been active in extending institutional credit to SHGs across Karnataka.
Credit Outreach to Rural Groups
Karnataka Grameena Bank has extended ₹2,835 crore in credit to 80,904 SHGs so far. This reflects the scale of its outreach in rural areas. The support has helped strengthen income-generation activities and improve financial inclusion among rural households.
Role in Rural Development Policy
The bank’s work is aligned with the Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY-NRLM). The mission aims to reduce rural poverty through self-help group-based livelihoods. The bank has also benefited from the merger of two regional rural banks in Karnataka under the Government’s ‘One State One Rural Bank’ policy, which has strengthened its institutional capacity.
Broader Significance
The award underlines the importance of regional rural banks in delivering credit to underserved communities. It also reflects the growing policy focus on women-led rural development, financial literacy, and sustainable livelihood creation through SHG-bank linkage.
Last Modified: April 29, 2026