Banks in Bihar meet credit target for last fiscal

The size of ACP has increased from ₹1,10,000 crore in 2017-18 to over ₹2 lakh crore in the current fiscal.

Banks in Bihar have achieved 99.59% of their annual credit plan ( ACP) for last fiscal 2021-22 and scored a marked improvement in the credit deposit (CD) ratio that rose to 52.96%, according to data shared at the 81st state level bankers’ committee (SLBC) meeting held in Patna on Wednesday.

Officials said the Bihar government in past few years has been put pressure on banks , especially commercial banks, to improve the CD ratio by giving more credit to MSME and small enterprises to boost economic activities in the state. (Picture for representation/HT Archives)

Deputy chief minister and finance minister Tarkishore Prasad, rural development minister Shravan Kumar and top state officials, besides representatives from commercial banks, regional rural banks and private banks, attended the meeting.

“The annual credit plan for the last fiscal (2021-22) was ₹1,61,500 crore, against which the credit disbursement was ₹1,60,837 crore.This is 99.59% of the target, which is a big achievement,” the deputy CM said.

The size of ACP has increased from ₹1,10,000 crore in 2017-18 to over ₹2 lakh crore in the current fiscal.

Expressing satisfaction at the improvement in credit-deposit ratio of banks (the amount of money disbursed by banks as loans against deposits), the deputy CM said he had instructed the bankers to take the CD ratio to 75%, which is the national average.

Officials said the state government in past few years has been put pressure on banks , especially commercial banks, to improve the CD ratio by giving more credit to MSME and small enterprises to boost economic activities in the state. In FY 2017-18, the CD ratio was 45.38 %, which has increased to 52.96% in FY 2021-22.