District-wise Comparative Study of Banking Penetration and Financial Inclusion in Odisha

Abstract

This article attempts to analyze the economic growth in the districts of Odisha by compiling an index for financial inclusion which included various dimensions of financial inclusion and resulted in a number between 0 and 1, where 0 is the worst condition of a district and 1 gives complete financial inclusion. The indicators used here are banking penetration, availability of banking services and usage of banking system. The study shows that Khurda district leads with the highest value, followed by Ganjam and Cuttack districts. The results were in accordance with the Planning Commission, Government of India, in defining underdeveloped districts. Some empirical findings were also conducted to examine the dynamic relationship between the financial inclusion indicators such as credit flows to the districts of Odisha, deposits in the banking sector and presence of bank branches per 1,000 sq km, and growth indicators like gross domestic product (GDP) in the case of districts of Odisha.