The Problem
Bharat with nearly 65% of India's population just accounts for 21% of the total credit
Bharat (Semi-urban and Rural) branches account for a third of the total branches for PSU Banks and more than half the branches for private sector Banks. However, of the total credit off-take, these account for just 21%.
Historically, Bharat branches have been looked upon as cost-centres required to meet the regulatory targets by many Banks which explains the lack of credit distribution to Bharat.