South India sizzles with a financial inclusion index score of 62.2, while Central India falters.
The much-hyped financial outreach programme has a lot of miles to go.
The denouement was clear from the reading of Inclusix, the country’s first-ever financial inclusion index constructed by Crisil, the credit rating agency.
The index was formally rolled out by finance minister P Chidambaram in New Delhi on Tuesday.
Mindful of the gravity of the situation, Chidambaram asked banks to roll up their sleeves since there’s a lot at stake and government schemes such as Aadhar-based direct benefit transfer (DBT) rest on it.
Crisil has been working on the index for quite some time now.
For 2011, the Inclusix score reads a paltry 40.1 and it’s the central Indian states that have fared the worst.
The index is on a scale of 100. And anything below 25 is low, 25 to 40 below average, 40.1 to 55 above average and above 55 high.
“We need to work on central India. Central Indian states seem to be holding back India’s growth. An interesting part of the report is the six largest cities have 11% of bank branches. And some 40% of the population lack access to banking.
Unless banks improve, we cannot ensure success of other schemes such as direct benefit transfer and Aadhar,” said Chidambaram while speaking at the event.
With a score of 62.2 in 2011, South India leads the pack, followed by the Western region (38.2), North (37.1), East (28.6) and the North-East (28.5). The first report is based on two lakh data collected from 165 banks spread over 632 districts, for which the penetration of branch, credit and deposit serves as the vital parameters. This index is set to widen its ambit once it gets on board other services like insurance.
The star performers, according to the report, are Puducherry, Chandigarh, Kerala, Goa and Delhi. Arunanchal Pradesh, Chhattisgarh, Bihar, Nagaland and Manipur bring up the rear.
Gujarat may have notched up an above average reading when it comes to branch and deposit penetration, but leaves a lot to be desired on the credit front. Even Madhya Pradesh, Chhattisgarh, Jharkhand, West Bengal, all seven north-eastern states and Jammu and Kashmir are no better, which sputter with a low credit penetration score.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}