Indian Bank's performance and Policies & Principles of Financial Inclusion

Abstract

We tie the performance of Indian banks in a broad framework around the policies and principles of financial inclusion. We find that the business aspect of financial inclusion is the biggest psychological barrier in India, though Banks have only recently acknowledged that the poor are indeed bankable, and are working towards creating strong business models that will create sustained financial inclusion as well as make a strong business sense to the bank themselves. This is possible only when financial inclusion is treated as an essential part of strategic financial sector growth and development by the government and the regulators.