Financial inclusion of 14 Orissa districts misses dateline

Business Standard, Feb 19, 2009

The attainment of 100 percent financial inclusion of 14 identified districts in the state has missed the dateline. The target to complete the process was October this year.

The identified districts are Kendarpara, Koraput, Kandhamal, Kalahandi, Nuapara, Bargarh, Jharsuguda, Jagatsinghpur, Bhadrakh, Balasore, Angul, Dhenkanal, Gajapati and Mayurbhanj.

Out of these, the State Bank of India (SBI) was entrusted with the task of financial inclusion in 7 districts- Kendarpara, Koraput, Kandhamal, Nuapada, Kalahandi, Bargarh and Jharsuguda.

Similarly, Uco Bank was assigned the job in 5 districts such as Jagatsinghpur, Bhadrakh, Balasore, Angul, Dhenkanal. While Andhra Bank was assigned the task of cent percent financial inclusion in Gajapati district, Bank of India (BoI) was to do the job in Mayurbhanja district.

The unprecedented flood in September and October and slow pace of work by the banks are said to be the reason for non-attainment of the target in stipulated period, official sources said.

Among the districts taken up by SBI under the financial inclusion plan, 97.75 percent target was achieved in Kendarapada district. Out of the 1,56,080 families identified for financial inclusion ,1,52,578 families were covered by the end of November, 2008.

Similarly, 81.75 percent of the target has been achieved in Nuapara district. About 1,02,510 families have already been covered under the financial inclusion plan against the target of 1,25,390 families. However, the process has not made much progress in other districts assigned to SBI.

Sources said, the rate of achievement in Koraput district was 39.81 percent, Kandhamal (68.49 percent), Kalahandi (59.29 percent), Baragarh (31.19 percent) and Jharsuguda district (49.03 percent).

Among the districts assigned to Uco Bank, the achievement was highest in Angul district (99.77 percent) followed by Balasore (98 percent). Angul district is on the verge of being declared as fully financially included with coverage of 1,98,388 families out of the identified 1,98,851 families. In Balasore district 3,16,395 families have been covered out of the targeted 3,22,852 families.

The rate of achievement for Jagatsinghpur (82.91 percent), Bhadrakh (87.32 percent) and Dhenkanal (83.9 percent), sources added. The rate of achievement of financial inclusion in Gajapati district, entrusted to Andhra Bank was 75 percent. Out of 1,11,405 families identified to be covered under the financial inclusion plan, 83,553 families have already been covered by the end of November.

However, achievement of financial inclusion in Mayurbhanj district, assigned to Bank of India (BoI) was 42.43 percent. About 85,980 families were covered under this plan by the end of November against 2,02,655 families targeted. The total financial inclusion of Cuttack, Ganjam, Puri, Raygada, Nayagarh and Keonjhar has been achieved by the assigned banks.