Gujarat ranks 18th in financial inclusion: CRISIL
The CRISIL Inclusix index released recently indicates that Gujarat is ranked 18th amongst 35 States and Union Territories on financial inclusion. Gujarat’s Inclusix score at 38.6 is below the all-India score of 40.1. However, 13 districts out of 26 in Gujarat have an Inclusix score higher than the all-India score.
Other key facts:
- Porbandar exhibits the highest Inclusix score(54.2) among Gujarat’s districts
- The bottom 5 districts are Dahod (Rank: 552), Banas Kantha (541), Panch Mahals (533), Tapi (524) and Narmada (398).
- Overall, Gujarat’s Inclusix score improved by 4.1 during 2009-2011 period compared to the improvement of 4.7 in the all-India score.
- The five districts showing the greatest improvement in Inclusix scores between 2009 and 2011 are: Amreli (Score improved by: 6.5), Mehsana (6.4), Gandhinagar (6.3), Vadodara (5.5)and Kachchh (5.3)
CRISIL Inclusix is a one-of-its-kind tool to measure the extent of inclusion in India, right down to each of the 632 districts. It uses a statistically robust, transparent, and easy-to-understand methodology. CRISIL Inclusix is a relative index on a scale of 0 to 100, and combines three critical parameters of basic banking services — branch penetration, deposit penetration, and credit penetration —into one metric. Over time, as consistent and comprehensive data becomes available, additional services like insurance, microfinance, etc. can be added.
Said Ms. Roopa Kudva, MD and CEO, CRISIL, “In creating this index, we have leveraged our knowledge of the financial services sector and expertise in creating world-class analytical frameworks and indices. The index measures inclusion at the district, state, and national levels and can aid in targeting and evaluating government initiatives for financial inclusion” The index is an outcome of nearly two years’ effort in developing the methodology and rigourous analysis spanning 2,00,000 data points from 165 banks. RBI provides the data used for index computation.
CRISIL Inclusix will enable policy makers, regulators, and bankers to identify priorities to improve financial inclusion, design focused initiatives to push the inclusion agenda, and most importantly, measure the progress made.
The accompanying report highlights many hitherto unknown facets of inclusion in India. It contains the first regional, state-wise, and district-wise assessments of financial inclusion ever published, and the first analysis of trends in inclusion over a three-year timeframe. Some key conclusions from the study are:
- The all-India CRISIL Inclusix score of 40.1 is low, though there are clear signs of progress — this score has improved from 35.4 in 2009.
- Deposit penetration is the key driver of financial inclusion — the number of savings accounts (624 million), is almost four times the number of loan accounts (160 million).
- 618 out of 632 districts reported an improvement in their scores during 2009-2011.
- The top three states and Union Territories are Puducherry, Chandigarh, and Kerala; the top three districts are Pathanamthitta (Kerala), Karaikal (Puducherry), and Thiruvananthapuram (Kerala).
For further information, please contact
Atul Malikram