Bihar’s credit-deposit ratio reached 60.17% in the financial year up to September, marking the highest level recorded in the state in two decades and signalling a significant rise in the share of bank deposits being converted into loans.
The ratio was almost unchanged from the 60.21% recorded in 2025-26, but remained well above the levels seen between 2005 and 2010, when it stayed around 45%. India’s national credit-deposit ratio was around 78.9% in the last financial year, according to the figures reviewed by the state government.
Bihar’s banks held deposits worth Rs 6.49 lakh crore in the current financial year, while credit disbursement stood at Rs 3.90 lakh crore. Compared with the previous financial year, deposits increased by Rs 33,797 crore and credit rose by Rs 20,092 crore.
The figures were reviewed at a meeting chaired by development commissioner Mihir Kumar Singh on Friday. The meeting also assessed the state’s annual credit plan for 2026-27 and the performance of commercial banks in loan disbursement up to September 30.
Bihar has fixed its annual credit plan for 2026-27 at Rs 4.95 lakh crore, nearly four times the state budget of Rs 1.25 lakh crore. The meeting noted that increased credit flow could support gross state domestic product and job creation across sectors.
Banks had disbursed 38.25% of the annual credit plan target by September 30. The amount disbursed was Rs 46,228 crore higher than during the corresponding period of 2025-26. The highest performance against the target was recorded in the micro, small and medium enterprises sector, where disbursement reached 52.68%.
Agriculture and other priority sectors were also identified among the key areas of lending. The figures provide an indication of how the state’s banking network is directing finance towards businesses, farm activity and other segments covered by the annual credit plan.
For the first time in Bihar, banks were also assessed on a mutually agreed 100-point scale. The evaluation considered performance against annual credit plan targets, the credit-deposit ratio and credit flow under identified government schemes.
Banks scoring 50 points or more were placed in the green zone, those scoring between 40 and 50 were placed in the yellow zone, and those scoring below 40 were placed in the red zone. Eleven commercial banks were placed in the green category, seven in the yellow category and nine in the red category. The state’s review of bank performance and credit-plan disbursement will continue as the 2026-27 financial year progresses.
