Bihar has set a Rs 4.95 lakh crore credit target for 2026-27 and introduced a 100-point bank performance index, with lenders urged to speed up lending to agriculture, MSMEs, start-ups and welfare schemes.
Bihar has set an annual credit target of Rs 4.95 lakh crore for 2026-27 and is pressing banks to move faster on lending to agriculture, micro, small and medium-sized enterprises, start-ups and other priority sectors, according to a review meeting chaired by Development Commissioner Mihir Kumar Singh in Patna. The state government said lenders were told to clear pending applications, cut rejection rates and work in mission mode to meet their goals. The figures and directives were presented at the third review meeting of a high-level committee at the Old Secretariat. The meeting also reviewed the state’s
Officials said banks had disbursed Rs 1,89,343 crore by the end of the September quarter, equal to 38.25% of the annual target, and Rs 46,228 crore more than in the same period a year earlier. The MSME segment performed best, with lending of Rs 84,091 crore against a target of Rs 1,59,632 crore, or 52.68% of the goal. Agriculture lagged behind that pace, with Rs 43,967.17 crore disbursed against a target of Rs 1,57,015 crore, or 28% achievement. Overall priority-sector lending stood at Rs 1,30,619 crore, which was 36.74% of the target.
The state’s credit-deposit ratio was recorded at 60.17% on September 30, close to 60.21% at the end of the previous financial year, with deposits at Rs 6,49,225 crore and outstanding credit at Rs 3,90,655 crore. That suggests lending activity remains relatively healthy, but officials in Bihar want a larger share of local deposits to support economic activity within the state, especially in farming, small business, start-ups and infrastructure. The Development Commissioner said banks with a CD ratio below 50% were not performing acceptably.
To sharpen accountability, Bihar has introduced a 100-point performance index for banks, dividing them into green, yellow and red zones. IDFC First Bank topped the list with 74 points, while several major lenders, including State Bank of India, Canara Bank, IDBI Bank and Kotak Mahindra Bank, were placed in the red zone for scoring below 40. The new framework measures progress against annual credit targets, credit-deposit ratios and lending under government schemes, and the state has also added four more welfare schemes to its monitoring system.
The review also highlighted scheme-specific lending, including the Kisan Credit Card programme, PM Surya Ghar Muft Bijli Yojana, PM SVANidhi and PM Vishwakarma. Under KCC, farmers received Rs 8,344.70 crore through more than 7.37 lakh accounts, while lending in animal husbandry and fisheries was also reported. The government said 13,911 applications were approved under the rooftop solar scheme, and more than 2.17 lakh applications were approved under PM SVANidhi. Bihar has also brought thousands of small enterprises and artisans into the formal financial system through other
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