What is the CD ratio of Bihar? Samrat Chaudhary government’s ultimatum to banks; There will be strictness on those who give less loans

Bihar Credit Deposit Ratio: In Bihar, the Samrat Chaudhary government has given a direct warning to the banks that if they are negligent in giving loans to people for home and business, then the government will not deposit money in their government accounts. Deputy Chief Minister and Finance Minister Bijendra Prasad Yadav said that the government will not accept deposits from banks with credit-deposit ratio (CD) less than 50%.

Reserve Bank of India considers CD ratio of 60% to 80% to be best for the health of the bank and the market. The strictness of the state government directly means that banks in Bihar will not give loans against public deposits, due to which their CD ratio will worsen further. As soon as the CD ratio falls below 50%, the government will stop transactions with them. Banks in Bihar have also been asked to increase their CD ratio.

Addressed the Joint Quarterly Meeting of the State-Level Bankers Committee

Deputy Chief Minister Bijendra Prasad Yadav addressed the 96th and 97th Joint Quarterly Meeting of the State-Level Bankers Committee on Tuesday. Senior officials of the state government and banks attended the meeting held in a hotel in Patna. The Deputy Chief Minister directed banks to give loans, achieve the Annual Credit Plan (ACP) target and increase the CD ratio. At the meeting, NABARD presented a proposal to increase the ACP to ₹495,000 crore from the previous ₹336,000 crore.

What is CD ratio?

This is called credit-deposit ratio. It measures what portion of public deposits is being returned to the public in the form of loans. Banks provide loans to both common customers and businessmen for home, vehicle and other business needs. Banks earn revenue from lending, which combined with interest on customer deposits, helps the bank grow. Simply put, if a customer has deposited ₹ 100 in a bank under a scheme like savings account, current account, fixed deposit or RD, and the bank distributes ₹ 50 to the people under different loans, then the CD ratio of the bank will be 50 percent.

What is the CD ratio of Bihar?

In the meeting, bank officials told the government that the CD ratio of Bihar is currently 60.21 percent. This means that if people of Bihar deposit ₹100 in banks, they get only ₹60 through various loans. The national average is around 80 percent. CD ratio of 70 to 75 percent is considered best for economy.

The importance of bank loans in the development of a state can be understood from the CD ratio of rich states. This ratio is 98 percent in Maharashtra, 98 percent in Rajasthan and 90 percent in Gujarat. In some states the CD ratio is more than 100, which means that people of that state are given loans more than the amount deposited in that state. For example, the CD ratio in Tamil Nadu is 126, in Telangana is 128, and in Andhra Pradesh is 155.

Prashant Kishore raised the issue of CD ratio

Jan Suraj Party founder Prashant Kishore has been raising the issue of low CD ratio in Bihar. During his tour and the assembly elections, PK strongly criticized the NDA government on this issue. Citing the low CD ratio of Bihar, he alleged that the people of the state are not getting money for jobs or other works, but that money is being used to distribute loans to other states.

Due to this, Bihar is lagging behind while other states are developing. To put PK’s point in the right context, if in Bihar a loan of ₹ 60 is given on depositing ₹ 100, then the remaining ₹ 40 is going to states like Andhra Pradesh and Telangana, where more loans are being distributed than the amount deposited by the people there.

Situation is improving, CD ratio is increasing

In recent years, the CD ratio of Bihar banks has started improving. The CD ratio in 2020 was less than 50%. In 2022 it went above 50% for the first time. Since then it has been increasing and reached above 60% in June 2026. Further improvement is expected after Bihar government’s warning to banks. The government is also working on a large scale to promote industry in the state, for which investors will have to take bank loans.

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