Now on the basis of performance, the status of banks will be decided: Bihar government implemented ranking index: Bihar-bank-inste-pyformance-cd-ratio-2025
The Bihar government has taken a big step towards increasing the transparency and accountability of the banking system in the state. Deputy Chief Minister Emperor Chaudhary has informed that now a ranking/scoring index will be implemented for evaluating the performance of banks, which has been approved by the state government.
The main objective of preparing this index is to strengthen the role of banks and make them more effective in state economic development. This ranking system will determine the accountability of banks that participation in government schemes, achievement of annual credit schemes, improvement in credit-sub-report ratio (CD ratio), loans distribution to priority groups in priority sectors like agriculture, animal husbandry, fisheries, providing loans to self-help groups and successful implementation of schemes like Pradhan Mantri Mudra Group and Prime Minister Mudra Scheme, Kisan Credit Card (KCC) like Pradhan Mantra Credit Card (KCC) Whether we descend or not.
Deputy Chief Minister Chaudhary said in clear terms that banks are not limited to the safety of public savings, but they are institutions to give direction to the economic moves of the state. If banks distribute loans properly in areas such as industry, trade, education and service, they can also play an effective role in employment generation. Under this thinking, an annual credit scheme is prepared at the beginning of every financial year through the State Level Bankers Committee (SLBC), in which the targets are given to the banks.
However, Chaudhary also said that in the financial year 2024-25, most banks have failed to achieve their set goals. In particular, Bihar’s CD Ratio is lower than the national average, which is a matter of concern. In view of this decline, it has been decided that now the performance based ranking index has become necessary to ensure the accountability of banks.
Under this index, banks will have to score at least 40 points. Banks who will not be able to achieve this minimum score will neither be allowed to participate in government schemes nor will they be able to conduct banking transactions from government departments, public undertakings, authorities and societies. Also, such banks will not be allowed to accept government deposits.
The Deputy Chief Minister described this ranking as an “alarming signal” for banks. He clarified that this step would inspire banks to bring transparency, activism and efficiency in their functioning.
This decision will compel banks not only for profitable performance, but to work in the widespread interest of society and state.
