Patna: Bihar Deputy Chief Minister and Finance Minister Bijendra Prasad Yadav on Tuesday warned that a formal complaint could be sent to Prime Minister Narendra Modi over what he described as continued poor performance by banks in the state, particularly in credit disbursement.
The remarks were made during the State Level Bankers’ Committee (SLBC) meeting, where senior officials reviewed banking performance indicators for the financial year 2025–26.
Credit Performance Under Scrutiny
Officials presented data showing Bihar’s credit-deposit (CD) ratio at 58.68 percent, which was described as below expectations. Against an annual credit target of Rs 3,36,000 crore, banks achieved Rs 2,84,632 crore, or 84.71 percent of the target.
The Finance Minister said repeated warnings had not resulted in visible improvement in lending behaviour by banks operating in the state.
Development Commissioner Mihir Kumar Singh also criticised the performance of the convenor bank, State Bank of India, stating that overall progress remained unsatisfactory.
Sector-wise Lending Performance
The review showed uneven sectoral performance. Agricultural credit achievement stood at 68.03 percent, while the MSME sector recorded 84.26 percent achievement for the year.
Officials said such gaps indicated slow credit flow into key productive sectors of the state economy.
Divergence in Bank Performance
Among different categories of banks, commercial banks reported a CD ratio of 55.33 percent, significantly lower than expectations.
In contrast, cooperative banks recorded a CD ratio of 168.78 percent, while small finance banks reported a ratio exceeding 200 percent. Officials noted this wide divergence during the review.
Warning and Administrative Response
The Finance Minister said the situation was “unacceptable” and indicated that continued underperformance could lead to escalation at the highest level.
Officials present at the meeting expressed concern over the lack of improvement despite earlier directions, signalling the possibility of stricter monitoring measures in the coming months.
Digital Initiative Launched
During the meeting, the state also launched the Bihar Agriculture Credit Portal, developed by the Finance Department to improve access to institutional credit for farmers.
Authorities said the platform is aimed at streamlining loan processes and improving transparency in agricultural lending.
