LIST OF CONTENTS

Certificate………………………………………………………...i
Declaration……………………………………………………….ii
Acknowledgement………………………………………………iii
List of contents…………………………………………………..iv
List of tables, flowcharts and figures…………………………..viii
List of acronyms and abbreviations……………………………..xi
Abstract………………………………………………………...xiii

Chapter-1 Introduction Page No

1.1. Background of the study 01
1.2. Motivation of the study 04
1.3. Framework of Literature Studies 05
1.4. Research Gap 05
1.5. Statement of the Problem and Research Questions 05
1.6. Research Objectives 06
1.7. Research Methodology 07
1.8. Methods of Data Collection 07
1.8.1. Primary Data 08
1.8.2. Secondary data 08
1.9. Rationales to Select the State of Kerala 09
1.9.1. Selected districts for the study 09
1.9.2. Population of the study 10
1.10. Sampling Methods 10
1.11. Determination of Sample Size 11
1.11.1. Sample Size of Customers of Business Correspondents 11
1.11.2. Sample Size of Business Correspondents 12
1.12. Pre-Testing of the Survey Instruments 13
1.13. Data Analysis Methods 13
1.14. Summary 13

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Chapter-2 Review of Literature Page No
2.1. Introduction 14
2.2. Studies on financial inclusion 15
2.3. Financial inclusion of Banks 21
2.4. Microfinance 23
2.5. Financial Inclusion through Microfinance 28
2.6. Research gap 34

Chapter-3 Financial Inclusion through Microfinance Page No

3.1. Introduction 35
3.2. Major Financial Inclusion Initiatives in India 36
3.3. Microfinance in India 38
3.4. Banking Initiatives in Microfinance Sector 40
3.4.1. Business Correspondents 41
3.4.2. SHG Bank Linkage Programs (SHG-BLP) 47
3.4.3. Primary Agricultural Credit Societies (PACS) 48
3.4.4. Specialized Microfinance Branches 51
3.4.5. NABFINS (NABARD Financial Services Limited) 51
3.4.6. SIDBI Foundation for Micro Credit (SFMC) 52
3.4.7. Apna Savings Account 52
3.5. Paradigm Shifts in Banks 52
3.6. Niche Banking in the Microfinance Sector 53
3.6.1. Small finance Bank 53
3.6.2. Local Area Banks 54
3.6.3. Payment Banks 55
3.6.4. CriSidEx - An Index to Measure MSEs 56
3.7. Factors of derived trends in Microfinance Sector 56
3.7.1. Priority Sector Lending 57
3.7.2. RBI Roadmap to Cover Villages 60
3.7.3. Divestment and Expansion Strategy 61
3.7.4. Corporate Social Responsibility 61

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 3.8. Microfinance based Banking Activities in Kerala 61
3.8.1. Role of Akshaya based BC operations in the state of Kerala 63
3.9. Summary 64

Chapter-4 Preliminary Analysis of the Data Page No

4.1. Initial Validity Tests 65
4.2. Univariate Analysis 66
4.2.1. Deletion of missing data 66
4.2.2. Detection of the outliers 66
4.2.3. Reliability Test (Internal consistency) 66
4.2.4. Normality Test 67
4.3. Multivariate Analysis 67
4.4. Factor Analysis 68
4.5. Factor Analysis:-1 68
4.5.1. Confirmatory Factor Analysis (CFA) 70
4.6. Construct Validity 74
4.6.1. Convergent Validity 74
4.6.2. Discriminant validity 75
4.7. Factor Analysis-2 76
4.8. Factor Analysis-3 81
4.9. Factor Analysis-4 85
4.10. Summary 88

Chapter-5 Data Analysis and Interpretation Page No

5.1. Introduction 89
5.2. Phase-1: Demographic Profile 89
5.2.1. Demography of Business Correspondents 90
5.2.2. Frequency Analysis of Forms of BC Operation 91
5.2.3. Services Rendered by Business Correspondents 92
5.2.4. Year of Services of BCs 93
5.2.5. Average Income and Expenses of BCs 93
5.2.6. Demography of BC Customers 94

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 5.2.7. Services avail by BC Customers 95
5.3. Phase-2: Multivariate Analysis 96
5.3.1. Inferential Test-1 97
5.3.2. Inferential Test-2 99
5.3.3. Inferential Test-3 101
5.3.4. Post Hoc Test (Multiple comparisons) 102
5.3.5. Inferential Test-4 103
5.3.6. Inferential Test-5 105
5.3.7. Inferential Test-6 106
5.3.8. Inferential Test-7 111
5.3.9. Inferential Test-8 112
5.4. Phase-3: Analysis on Demand and Supply side Issues 115
5.4.1. Inferential Test-9 117
5.4.2. Inferential Test-10 118
5.4.3. Inferential Test-11 120
5.5. Summary of the Analyses 121

Chapter-6 Findings, Suggestions and Conclusions Page No

6.1. Introduction 125

6.2. Major Findings 125
6.2.1. Findings based on the second objective of the study 125
6.2.2. Findings from the third objective of the study 127
6.2.3. Findings from the analyses on the fourth objective of the study 128
6.2.4. Findings from qualitative analysis on the first objective 129
6.3. Recommendations 130
6.4. Limitations and Scope of Further Study 132
6.5. Conclusions 132
Bibliography 134
Appendixes/Annexures 147
List of Publications 163

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