1. Inclusive Finance India Report
Prof. MS Sriram,
Visiting Faculty, Centre for Public Policy, IIM, Bangalore

2. Changing landscape of Financial Inclusion in India
M s sRIRAM

3. Foundation: Hard Infra (March 2016)

4. Foundation: Hard Infra (March 2016)
New

5. Foundation: Hard Infra (March 2016)

6. Foundation: Hard Infra

7. Commercial Banks
Decrease in the number of accounts and amounts disbursed in small borrowal accounts
Touch points have increased
Offsite touch points have increased
Targets for Priority Sector largely achieved, but sub targets on agriculture and weaker sections has gaps, particularly with public sector banks
Swabhimaan, PMJDY, branch opening, BC and all other initiatives leading to a buzz, with some CASA deposits but not lead to meaningful business. Inclusion is just “pass through” business for banks as of now.

8. RRBs
All were profitable, but we see 5 RRBs have slipped into losses in 2015 and 2016
No information on fresh investments in RRBs after the Act was amended to include a fourth investor, and an independent director representing those interests
Growth of branch network slower than commercial banks, but significant number of ultra small branches opened.
For branches largely in Rural and semi urban areas, RRBs have 1024 ATMs
Marginal increase in “small borrowal accounts” at the sub Rs.200,000 category
Reduction in accounts in the sub category
CD ratios low at 66%, high CASA, but falling to 51% (from 60%)
Agriculture the most significant portfolio (65%); Disbursal to SF/MF is also proportionally highest (69%)
PSL targets 75% (with 15% weaker section)
Challenges in portfolio diversification, credit offtake. Opportunities PSLC Trading.

9. PMJDY: Impressive growth

10. PMJDY: Impressive growth… but….

11. Digital Transactions

12. Mobile Transactions

13. Mobile Transactions… but….

14. Rural Co-operatives

15. Rural Co-operatives

16. Rural Co-operatives

17. UCBs

18. UCBs

19. Post offices: Network

20. SHGs Number of SHGs: Regional spread more even
Credit linkage: Skew towards south continues, more so after AP
Multiple players, approaches
NPA a concern. Interest subvention a concern
Digitisation a big initiative – leading to better information, securitization and deepening of engagement with financial markets
No signs of “individualization”

21. MFIs: Impressive growth, but some concerns

22. New Institutions and their implications
Small Finance Banks
Objectives
Policy direction
Incentives
Design
Challenges

23. New Institutions Payment Banks Objectives Design Focus Economics
Business Models and their implications
Scope for collaboration on the liabilities side?

24. Challenges Real Sector for livelihoods
Basic Real facilities for risk cover
Carrying costs with multiple back end players

25. Thanks