The Crisil Inclusix, which was released by finance minister P Chidambaram on Tuesday, however, said that efforts at financial inclusion are bearing fruit and are having an impact over the past three years with deposit and branch penetration on the rise.
The Crisil Inclusix score at an all-India level has improved to 40.1 in 2011, from 37.6 in 2010 and 35.4 in 2009, a statement by the company said, adding that the Inclusix measures financial inclusion at both the national as well as state specific level. The current report is based on analysis of data for the year ended March 2011.
Further, the improvement of credit penetration has also been crucial in the improvement of scores of the 50 most backward districts. The increase in number of borrower accounts in these districts accounted for about 30 per cent of the aggregate incremental borrower accounts, while accounting for just 8 per cent of the population, Crisil said.
The findings also show that the southern region leads in financial inclusion, followed by the western states and then the northern states. The eastern and north-eastern region stood at the fourth and fifth place respectively in the Inclusix and the report stressed on the need to enhance deposit, credit and branch penetration in these states.
Puducherry, Chandigarh, and Kerala are the top three states in terms of financial inclusion while the top three districts are Pathanamthitta (Kerala), Karaikal (Puducherry), and Thiruvananthapuram (Kerala). In terms of regions, the urban areas, perhaps not surprisingly, outperform the rural areas, and state capitals score significantly higher than the respective states, the report noted.