India’s overall CRISIL Inclusix score has risen by 2.7 in fiscal 2012 – the highest annual increase since 2009, says Roopa Kudva, MD & CEO, CRISIL
CRISIL today released the latest scores for CRISIL Inclusix, its financial inclusion index, based on the latest data (as on 31 March 2012) provided by the Reserve Bank of India (RBI). The index measures financial inclusion up to the level of each of the 638 districts in India.
According to Roopa Kudva, managing director & CEO, CRISIL, “India’s overall CRISIL Inclusix score has risen by 2.7 in fiscal 2012 – the highest annual increase since 2009. As many as 587 out of a total 638 districts in India and 34 out of 35 states and Union territories improved their scores, reflecting a broad-based improvement in financial inclusion.”
The trends observed by analysing the latest RBI data shows:
(a) A significant rise in new savings accounts across the 5 regions – north, south, east, west and north-east. Overall, 79 million new savings accounts were opened in fiscal 2012, 12.6% more than in fiscal 2011.
(b) Agricultural credit accounts have grown at 11.1%, which is the most since fiscal 2009.
(c) The number of bank branches in the bottom 100 districts has increased by 6%, faster than the all-India growth of 5.6%.
Other inferences include: Just one in two Indians have a savings account and one in seven has access to bank credit. There are wide disparities in access to financial services, too. While India’s six largest cities have 10% of India’s bank branches, the bottom 50 districts have merely 2% of the bank branches.
“To speed up inclusion, financial services need to flow beyond the south and the large cities. Specifically, policy makers will have to incentivise expansion of banking services in the districts that have low CRISIL Inclusix scores through an increase in branch network and partnerships with other players,” Kudva said.
CRISIL Inclusix is an index to measure the extent of financial inclusion in India across its 638 districts. It claims to use a statistically robust, transparent, and easy-to understand methodology. It 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.
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