Financial Inclusion vis-à-vis Economic Efficiency: The Case of Commercial Banks in India

By : Manju S. Nair

Page No: 338-349

Abstract
After the implementation of Narasimham Committee recommendations the variables of economic efficiency and profitability have occupied the centrestage of all banking activities. But in the recent years there has been a growing realization that while the trickledown effect of economic growth no doubt works, it takes too long a time and hence there is a need to focus on inclusive growth which in turn necessitates the need for an all inclusive financial sector which can act as a catalyst to accelerate the process of inclusive growth. The present study is designed to examine the performance of scheduled commercial banks in India with respect to financial inclusion vis-à-vis economic efficiency. The study develops a methodology using Principal Components Technique to examine the comparative performance of scheduled commercial banks with reference to economic efficiency and financial inclusion. The need of the present hour is to have a judicious blending of these objectives and framing necessary policy strategies for tuning banking sector towards this goal.

Author :
Manju S. Nair : Associate Professor, Department of Economics, University of Kerala.