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Drivers of Credit Penetration in Eastern India

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  • Rajesh, Raj
  • Das, Anwesha

Abstract

This article highlights that the eastern region of India continues to lag behind other regions in harnessing the potential of bank credit as an instrument to promote growth and development, notwithstanding concerted policy efforts to further financial inclusion in the region. While enhancing access to credit remains critical to strengthen credit penetration in the region, empirical findings suggest that factors influencing demand for credit – per capita income, level of industrial activity and availability of infrastructure such as road network and power supply – also matter.

Suggested Citation

  • Rajesh, Raj & Das, Anwesha, 2019. "Drivers of Credit Penetration in Eastern India," MPRA Paper 100385, University Library of Munich, Germany, revised 08 Oct 2019.
    • Handle: RePEc:pra:mprapa:100385
    as

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    File URL: https://mpra.ub.uni-muenchen.de/100385/1/MPRA_paper_100385.PDF
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    References listed on IDEAS

    as
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    7. Nitin Kumar, 2013. "Financial inclusion and its determinants: evidence from India," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 5(1), pages 4-19, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank Credit; Financial Inclusion; Infrastructure; Income; CD ratio; Eastern India;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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