Limited Reach

FOCUS Graphiti Rural India is home to some Rural India accounts for a minuscule share of the total credit disbursed by banks LIMITED REACH 83 crore people, about 70 per cent of the population. Ensuring rural access to bank credit is one of the Urban I Rural Semi Urban Figures in per cent 6/8 8/10 10 keys to poverty alleviation. But financial inclusion is 86 82 84 82 still a distant dream. Rural DEC 2009 DEC 2010 DEC 2011 DEC 2012 India gets only a small fraction of the total credit disbursed by banks. 2 Even in urban India, bank credit is largely disbursed in the metropolitan cities South India does better than the rest of the 4 country at financial inclusion. Its credit to deposit ratio in rural districts is higher than in the urban centres Graphic by Santosh Kushwaha Research by Jyotindra Dubey Figures in per cent for Oct-Dec 2012 Rest of India Rural credit disbursed 19 4 98,365 100-200* Northern Region Though the majority of Indians live in villages, the number of branches in rural and urban India is almost the same 50,983 53,570 7-100* • 23 54 Top 6 cities Western Region Eastern Region IRural Bank Branches IUrban Bank Branches Semi Urban Bank Branches 1,41,066 *Urban/semi urban centers ranked by amount of credit disbursed Figures in ? crore until December 31, 2012 Southern Region Private sector banks, in particular, are the laggards at providing credit to rural India Rural Credit-to-deposit Ratio* IRural I Semi Urban IUrban 2,05,724 1.20 1.00 0.80 1,19,174 0.60 R 83,673 0.40 0.20 Western Region Northern Eastern Region Southern DEC/09 17,393 Region Region BANK Private Sector Banks SBI and Associates * Credit disbursed for every 1 deposited Nationalised Banks Regional Rural Banks Figures in ? crore until December 31, 2012 DEC/10 DEC/11 DEC/12 32,024 30,646 |19,841 | 32,870 | 32,730 21,552 34,208 34,713 23,769 |37,159 37,488 26,920