At the beginning of the twenty-first century, India emerged as one of the fastest growing economies in the world. There is a widely shared view that by 2025 India will be the third largest economy in the world (after the United States and China). At the same time, despite its high growth potential, India also continues to have the largest number of persons below the poverty line in the world. As many as 350 million Indians do not earn enough to ensure the minimum intake of food and nutrition. The conditions prevailing in a few of India's urban slums and rural areas are among the worst in the world.

Among the developing countries, India was a pioneer in development planning with the proclaimed objective of removing poverty within a reasonable period after its independence from colonial rule in 1947. India was also among the early proponents of Social Banking as a vital instrument for increasing agricultural productivity and generating employment opportunities. With this specific purpose in view, all large commercial banks were nationalised in 1969 and brought under direct government ownership and control. And yet, the results on the ground have not lived up to the early expectations of the country's planners and decision-makers.

The dichotomy between a ‘shining’ fast-growing India and its persistent poverty is a puzzle which has baffled economists and policy makers. In her new book on Social Banking, Dr Deepali Pant Joshi has attempted to find some answers to this puzzle and outline a programme for the future.