Abstract
This paper examines the contribution of NGO micro-finance programmes to poverty alleviation with the help of evidence on group formation and savings and credit operations. The paper suggests that the micro-finance programmes often benefit the non-poor, savings amounts are not high enough to reduce vulnerability within member households and loan amounts are not large enough to make a dent on poverty. Many member households do not have significant access to credit. The claim that micro-finance programmes are answer to poverty alleviation is not, therefore, empirically substantiated. This suggests that in addition to micro-finance other interventions such as public expenditure, credit plus activities etc., have to be made.