Patna, Oct 24 (IANS) Bihar has set an Annual Credit Plan target of Rs 4.95 lakh crore for the financial year 2026-27, with the state government directing banks to accelerate lending to agriculture, micro, small and medium enterprises (MSMEs), startups and other priority sectors.
Banks have been asked to clear pending loan applications, reduce rejection rates and achieve their targets in mission mode.
The directives were issued during the third review meeting of a high-level committee held at the Old Secretariat on Friday under the chairmanship of Development Commissioner Mihir Kumar Singh.
The meeting reviewed the overall performance of banks, progress under the Annual Credit Plan, the credit-deposit (CD) ratio and lending under various government welfare schemes.
During the meeting, Singh introduced a 100-point scientific measurement index to assess the performance of banks operating in Bihar.
The new system is intended to establish a transparent framework for scoring and ranking banks against specified parameters.
The state government has also incorporated four additional welfare schemes into its credit-monitoring mechanism to improve oversight of financial flows.
Against the Annual Credit Plan target of Rs 4.95 lakh crore, banks disbursed Rs 1,89,343 crore by the end of the September quarter, achieving 38.25 per cent of the annual target.
This represented an increase of Rs 46,228 crore compared with the corresponding period of 2025-26, according to the figures presented at the meeting.
The MSME sector recorded credit disbursement of Rs 84,091 crore against a target of Rs 1,59,632 crore, achieving 52.68 per cent of its target.
In agriculture, banks extended Rs 43,967.17 crore against a target of Rs 1,57,015 crore, representing 28 per cent achievement.
Overall priority-sector lending reached Rs 1,30,619 crore against a target of Rs 3,55,532 crore, or 36.74 per cent.
Bihar’s CD ratio stood at 60.21 per cent at the end of the 2025-26 financial year and was recorded at 60.17 per cent on September 30.
Total deposits in the state reached Rs 6,49,225 crore, while outstanding credit stood at Rs 3,90,655 crore.
Compared with the previous year, deposits increased by Rs 33,797 crore and credit by Rs 20,092 crore.
Reviewing lending under welfare schemes, the Development Commissioner directed banks to accelerate credit delivery under the Kisan Credit Card (KCC), PM Surya Ghar Muft Bijli Yojana, PM SVANidhi and PM Vishwakarma schemes.
Under the KCC scheme, farmers received Rs 8,344.70 crore through 7,37,906 accounts, including the renewal of 7,12,383 accounts.
Lending amounted to Rs 605.01 crore in animal husbandry and Rs 11.12 crore in fisheries.
Under the PM Surya Ghar Muft Bijli Yojana, 13,911 applications were approved, facilitating disbursements of Rs 284.51 crore.
The PM SVANidhi scheme recorded 2,17,731 approved applications, with loans worth Rs 209,959 lakh reported as disbursed.
Meanwhile, 2,748 enterprises were covered under the PM Formalisation of Micro Food Processing Enterprises scheme, while more than 28,625 artisans were brought into the formal financial system under PM Vishwakarma.
Singh expressed concern over banks performing below the state average of 38.25 per cent and those placed in the red zone under the new assessment system.
He directed them to accelerate lending during the remaining months of the financial year.
He also said that a CD ratio below 50 per cent was unacceptable for major banks holding a substantial share of Bihar’s deposits.
The Development Commissioner emphasised that funds deposited by Bihar’s residents should support economic activity within the state, including agriculture, MSMEs, startups and infrastructure development.
Banks were instructed to clear pending applications promptly and reduce loan rejection rates, particularly under KCC, PM Vishwakarma and street-vendor lending schemes.
The meeting was attended by the Finance Department’s Principal Secretary, the State Level Bankers’ Committee’s chief convener, senior officials from public- and private-sector banks and representatives of relevant state government departments.
Banks have been classified into three categories under the new 100-point performance index.
Banks in the ‘Green Zone’ with 50 points or more, excellent performance, are IDFC First Bank (74 points), which tops this list. Other banks in this category include Jammu and Kashmir Bank (68), RBL Bank (68), HDFC Bank (65), Bank of Baroda (64), Ujjivan Small Finance Bank (63), Punjab and Sind Bank (58), Bihar Gramin Bank (57), Bank of Maharashtra (53), AU Small Finance Bank (53), and Union Bank of India (52).
Banks in the Yellow Zone between 40 and 50 points are considered moderate performers. This category includes ICICI Bank (47), Bank of India (47), Punjab National Bank (45), Axis Bank (42), Yes Bank (42), Unity Small Finance Bank (42), and Indian Bank (40).
Banks in the Red Zone with less than 40 points are considered as underperformers. This category includes Indian Overseas Bank (37), Central Bank of India (37), UCO Bank (35), State Bank of India (32), Canara Bank (27), IDBI Bank (26), Bandhan Bank (26), Kotak Mahindra Bank (26), and State Co-operative Bank (26), among others.
–IANS
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