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International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
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Vol. 8, Issue 2 (2025)

Financial Inclusion and Bank Stability in India: An empirical correlation-based study


Prafulla Kumar Dwibedi and Manoj Kumar Sahoo

In order to strengthen the general stability of the banking industry and incorporate unbanked populations into the formal financial system, financial inclusion has become a major policy objective in India. Using secondary data from 2019 to 2025, this study empirically investigates the connection between financial inclusion and bank stability in India. Gross non-performing assets are used to gauge bank stability, while Pradhan Mantri Jan Dhan Yojana serves as proxies for financial inclusion. To determine the direction and intensity of the relationship between inclusion programs and banking stability indicators, the study uses correlation analysis and descriptive statistics. A more resilient banking system may result from increased access to formal financial services, according to the findings, which show a strong correlation between the growth of financial inclusion and improvements in a few stability metrics. The study highlights the significance of inclusive finance in fostering sustainable banking stability in emerging economies like India and provides regulators and banking institutions with policy-relevant information.

Pages : 1345-1349 | 165 Views | 92 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Prafulla Kumar Dwibedi, Manoj Kumar Sahoo. Financial Inclusion and Bank Stability in India: An empirical correlation-based study. Int J Finance Manage Econ 2025;8(2):1345-1349. DOI: 10.33545/26179210.2025.v8.i2.699
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