You are here: Home » Current Affairs » News » National
Business Standard

Poor banking network in Bihar

In Bihar there is only one bank branch to cater to a population of 22,000

Press Trust of India  |  Patna 

Nitish Kumar, Bihar chief minister

Bihar which lags behind the average on development indices like roads, power and per capita income also has a poor banking network that is posing a roadblock in the growth process.

While there is one bank branch for a population of 12,000 at the level, in Bihar there is a bank branch to cater to a population of 22,000.

Of the 8500 gram panchayats in Bihar, around 5000 does not have a bank branch, Chief Minister Nitish Kumar reeled out the figures during a meeting of State Level Banking Committee (SLBC) at Rajgir yesterday.

The second most populous state of the country has a total of 5270 bank branches of which 3143 are in rural areas, 1150 semi urban and 978 in urban locations, he said.

Of the 2509 ATMs in the state, only 395 are in the rural areas, Kumar told the meeting at Rajgir yesterday which was attended by Union Finance Minister P Chidambaram and top officials of the nationalised banks.

The chief minister sought better banking facilities in the state to give momentum to its growth process.

He stressed on the need for opening new bank branches in the left out panchayats and appointment of an official immediately who has power to sanction loan so that needy people get money from bank for starting some venture.

Extending its helping hand to Bihar, Chidambaram laid out ambitious targets for 2014-15 for a strong banking network in the state. He set a target of opening 750 new branches in the state in the next one year.

He instructed banks to liberally give loans particularly for education, food processing and agriculture.

Chidambaram said though the CD (Credit Deposit) ratio in Bihar has improved to 40% in 2012-13 it needs to further go up in the future.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, May 12 2013. 12:36 IST
RECOMMENDED FOR YOU
.