mba(2007-09)

1. Identification of Factors Influencing Financial Inclusion in Agriculture – An Application of Artificial Neural Networks Vishnuprasad Nagadevara Indian Institute of Management Bangalore [email_address]

4. Share of Credit (percentage) 38.9 30.6 36.8 68.3 81.3 92.7 Non-Institutional Sources 12.1 13.1 20.7 32.2 32.1 23.0 Other Non-Institutional Sources 26.8 17.5 16.1 36.1 49.2 69.7 Money Lenders 61.1 69.4 63.2 31.7 18.7 7.3 Total Institutional Sources 4.6 4.2 4.6 7.3 15.5 3.1 Others 26.3 35.2 28.8 2.4 0.6 0.9 Commercial Banks 30.2 30.0 29.8 22.0 2.6 3.3 Cooperative Societies 2002 1991 1981 1971 1961 1951

11. Neural Network Model Age Region Call Rate Service Income Loyal Hopper Lost

13. Sample Profile 6.2 430 Female 93.8 6518 Male Gender 100 6948 Total 26.2 1821 51 & Above 54.4 3782 31-50 19.4 1345 Up to 30 Age Group Percent Frequency Characteristic

14. Sample Profile 0.4 30 Divorced / Separated/Deserted 4.5 316 Widow/Widower 5.9 413 Never Married 89.1 6189 Currently Married Marital Status 5.2 361 Graduation & Above 42.9 2984 Up to Intermediate Education Level 74.1 5148 Others 25.9 1800 SC/ST Social Category

15. Sample Profile 4.8 331 No 95.2 6617 Yes Ownership of Occupied House 100 6948 Total 6.6 458 Large 19.1 1326 Medium 23.4 1626 Small 40.7 2829 Marginal 10.2 709 Landless Agricultural Landholding

16. Savings Instruments 6.9 482 Recurring Deposits 4.8 332 Fixed Deposits 44.9 3118 Savings Account Banking Products 0.2 11 Gratuity Scheme 0.2 12 Government Provident Fund 0.2 11 Government Pension Scheme 0 3 Employees Pension Scheme 0.1 5 Employee Provident Fund Percent Frequency

17. 0.7 47 Non-Life General Insurance 0.2 15 Health Insurance 0.5 32 Personal Accident Insurance 2.4 166 Life Insurance (Non Endowment) 14.6 1013 Life Insurance (Endowment) Insurance Products 3.1 216 KVP 0.4 30 NSC 0.1 4 PPF Post Office Products 6.9 482 Recurring Deposits 4.8 332 Fixed Deposits 44.9 3118 Savings Account Banking Products

18. Sources of Credit 100.00 2058 Total number of loans 1.18 82 More than 3 1.09 76 Three Sources 5.35 372 Two Sources 21.99 1528 Single Source 70.38 4890 No Credit Percent Frequency

19. Important Sources of Credit 5.64 1.7 116 SHG 30.27 9 623 Relatives/Friends 4.81 1.4 99 Govt. 14.72 4.4 303 Cooperative Society 16.38 4.9 337 Cooperative Bank 18.76 5.6 386 Nationalized Banks 4.18 1.2 86 Private Financial Institutions 46.02 13.6 947 Money Lender Percent Percent Frequency Source of Credit

20. Prediction Accuracies 61.90% 37.99% Debt 96.13% 0.76% 99.24% No Debt Nationalized Banks 77.02% 22.77% Debt 99.21% 0.07% 99.93% No Debt Private Financial Institutions 82.98% 17.00% Debt 84.71% 13.93% 86.07% No Debt Money Lender Debt No Debt Actual Source Overall Forecast

21. Prediction Accuracies 59.83% 39.89% Debt 98.49% 0.16% 99.84% No Debt SHG 62.90% 37.03% Debt 93.80% 1.65% 98.35% No Debt Relatives/Friends 85.68% 14.26% Debt 98.34% 0.50% 99.50% No Debt Cooperative Society 53.18% 46.70% Debt 95.89% 0.58% 99.42% No Debt Cooperative Bank Debt No Debt Actual Source Overall Forecast

22. 2 3 8 3 2 1 1 Awareness of Alternative Investment Options 1 6 Annual Investable Surplus 1 5 10 9 5 Annual Income 2 1 3 8 Annual Expenditure 9 All Savings 5 4 9 2 1 3 6 Agricultural Landholding 6 10 7 7 7 5 8 Age Group SHG RF PI NB ML CS CB Variable

23. 4 Marital Status 3 4 8 2 Insurance Products 8 4 Exposure to TV 10 10 Exposure to Radio 9 Exposure to Newspaper 2 4 3 Education Level 7 7 10 Banking Products SHG RF PI NB ML CS CB Variable

24. 6 5 4 Language Proficiency [Local] 10 8 5 6 9 Language Proficiency [Hindi] 3 8 Language Proficiency [English] 6 Social Category 1 6 4 10 7 Primary Savings Need 9 Post Office Instruments 5 7 Owner of Other Real Estates 9 2 Media Exposure SHG RF PI NB ML CS CB Variable