In a bid to improve the performance and accountability of banks operating in the state, the Bihar government has approved the creation of a Bank Ranking Index. The index will assess banks based on specific performance parameters and determine their eligibility for participation in state-related financial operations.
The move comes after widespread dissatisfaction was expressed over the poor performance of many public and private sector banks during a recent meeting of the State-Level Bankers' Committee (SLBC). It was observed that several banks failed to meet their credit disbursal targets under the Annual Credit Plan (ACP) for the financial year 2024–25. Bihar's credit-deposit (CD) ratio also remains significantly below the national average.
ALSO READ: Gujarat ATS Busts Al-Qaeda Module, Arrests Four Individuals
Announcing the decision, Deputy Chief Minister and Finance Minister Samrat Choudhary said that banks are not only custodians of public savings but also play a vital role in driving the state’s economic growth. He stressed the need for increased accountability and vigilance to meet development goals.
Recommended For You
The proposed ranking index is being seen as a wake-up call for underperforming banks. Only those institutions that score a minimum of 40 marks on the index will be eligible to handle government schemes, deposits, and transactions involving public sector undertakings (PSUs), authorities, and government-affiliated societies.
Key Parameters of the Bank Ranking Index:
-Achievement of Annual Credit Plan targets
-Improvement in Credit-Deposit Ratio
-Loan disbursement in priority sectors like agriculture, animal husbandry, and fisheries
-Support to Self-Help Groups (SHGs)
ALSO READ: Rajasthan Man Kills 5-Year-Old Nephew In Ritual Sacrifice To Win Back Estranged Wife
-Participation in government-backed schemes such as Mudra Yojana, Kisan Credit Card (KCC), and PMEGP
The index aims to foster a competitive environment among banks while ensuring that government-related financial services are entrusted to institutions committed to supporting economic development in the state.