The CCFS Report has laid out a vision for Sufficient Access to Affordable Formal Credit that places a goal of achieving a Credit to GDP ratio for each district of atleast 10% by January 1, 2016, and to cross 50% by January 1, 2020. Presently, based on estimates used in the CCFS Report, 94% of all districts’ urban areas and only 30% of all districts’ rural areas have achieved the 10% target, while only 18% of all districts’ urban areas and 2% of all districts’ rural areas have achieved the 50% target.
Notwithstanding the difficulty in obtaining reliable data1 for measuring Credit to GDP for all districts, we estimate2 and display below the district level variations in Credit to GDP for two States, namely Maharashtra and Bihar. While these two States are comparable in terms of size and population, there exists vast disparities between their financial depth ratios – while Maharashtra has a Credit to GDP ratio of 116%, Bihar has a very low ratio of 16%3. Below are the District-level interactive maps for the two States, displaying both the Rural and Urban Credit to GDP ratios.
Maharashtra (35 Districts) – Please click on the map to swap between Urban & Rural data. To know the value of a particular district, hover your mouse over it to get specific details.
Bihar (38 Districts) – Please click on the map to swap between Urban & Rural data. To know the value of a particular district, hover your mouse over it to get specific details.
While Maharashtra is known to have the highest financial depth among Indian States, a deeper look at the variation across its districts reveals that the districts of Mumbai and Mumbai Suburban have more than 500% Credit to GDP. While this can be attributed to large corporate loans that get booked in the metropolitan city and that get deployed elsewhere across India, the fact remains that in the context of both rural and urban credit, all other districts lag behind tremendously and are in fact at par with the extent of financial depth for the districts of Bihar.
India has a modest overall bank Credit to GDP ratio of around 70%4. Attempting to estimate this metric for all districts reveals regional variations across States and districts and is evidence of poor credit outreach by the formal financial system. The districts in the North-Eastern States have a median Credit to GDP ratio of 6% (for rural) and 18% (for urban) with the lowest values of 0.40% (for rural) and 1.15% (for urban) respectively.
All India map – Please click on the map to swap between Urban & Rural data. To know the value of a particular district, hover your mouse over it to get specific details.
- Latest GDP data is not available for districts. Also, while credit through the Urban Cooperative Banking channel is significant in Maharashtra, district level data for the same is not available. Data in these maps pertains to Scheduled Commercial Banks’ rural and urban credit data made available on the RBI website.
- Refer Footnote 30 of the CCFS Report for Estimation methodology. Additionally, these maps have been prepared for the Census 2011 districts.
Note: Credit to Avinash of Data Stories fame for technical inputs on the Maps visualisation.