Madhya Pradesh ranks 27th in financial inclusion: CRISIL

INDORE, India - Nov. 18, 2013 - PRLog -- Madhya Pradesh ranks 27^th in financial inclusion: CRISIL

The CRISIL Inclusix index released recently indicates that Madhya Pradesh (MP) ranked 27th amongst 35 States and Union Territories on financial inclusion. MP’s Inclusix score at 29.9is below the all-India score of 40.1. However, 4districts out of 50 in MP have an Inclusix score higher than the all-India score.

Other key facts:

1.      Bhopal exhibits the highest inclusix score (60.4) among Madhya Pradesh’s  districts

2.      Sevenof Madhya Pradesh’s districts are in the bottom 50 of the country. These are Alirajpur (Rank: 619),  Bhind (608), Sheopur (607), Jhabua (599), Morena (597), Barwani (589), Dindori (583)

3.      The 5 districts with the most improvement in the Inclusix score between 2009 and 2011 are: Sagar(Score improved by: 8.5), Anuppur (7.8), Umaria (6.1), Hoshangabad (6.1) and Bhopal (6.0)

4.      The state’s  Inclusix score improved by 3.5 during the 2009-2011 period compared to the all-India improvement of 4.7

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 more details please contact

Ritu@9827092823