1. Banking Infrastructure in Bihar

• Bihar has 7485 commercial bank branches, up from 7453 last year.
• Banking density (branches per lakh population): 6.1 in 2022–23, slightly lower than 6.2 in 2021–22.
• ATM density: 5.8 per lakh persons.
• Priority Sector Lending forms 63.3% of total advances.

2. Credit Flow and CD Ratio

• Total Bank Credit (March 2023): ₹2,70,832 crore
  • Priority Sector Loans: ₹1,71,390 crore
  • Non-Priority Sector Loans: ₹99,441 crore
• Credit-Deposit (CD) Ratio:
  • Bihar: 47.6% (2022–23), among the lowest in India.
  • Urban CD Ratio: 60.1% vs Rural CD Ratio: 35.3%
  • Despite an increase in banking presence, low CD ratio reflects limited credit penetration, especially in rural Bihar.

3. Cooperative Credit Institutions

• Cooperative Banks: Bihar State Cooperative Bank and 22 District Central Cooperative Banks.
  • They disbursed ₹5,011 crore in 2023–24 (target: ₹7,000 crore).
• Primary Agricultural Credit Societies (PACS):
  • Total: 8463
  • Functional: 8145
  • Total Loans disbursed: ₹2500 crore
• Bihar State Cooperative Bank’s net profit: ₹50 crore (2023–24), up from ₹42 crore in previous year.

4. Microfinance Institutions (MFIs)

• Client Base: 88.25 lakh active borrowers
• Loan Portfolio: ₹29,265 crore (March 2023)
• Loan Size: Mostly small-ticket loans for self-employment, group-based lending model.

5. Self-Help Groups (SHGs) and JEEViKA

• Under BRLPS-JEEViKA, 12.33 lakh SHGs formed.
• Bank linkage of SHGs:
  • Cumulative loan sanctioned: ₹18,500 crore
  • Outstanding: ₹10,332 crore
• SHG NPA (Non-performing assets): only 2.01%, showing strong repayment culture.

6. Financial Inclusion Measures

• 3.32 crore accounts opened under PM Jan Dhan Yojana.
• 86.5% accounts are Aadhaar seeded.
• Bank Mitra Model: Functional in 1,688 Gram Panchayats.

Conclusion

Bihar’s banking network is expanding steadily, but issues such as low credit penetration, rural credit deficit, and low CD ratio persist. However, SHGs, MFIs, and cooperative banks play a vital role in grassroots financial inclusion. Strengthening credit delivery, especially in rural areas, remains essential for inclusive economic development.