Bihar Finance Minister Warns PM Over Banks’ Poor Credit Performance

Brief By Newsbrief / 3:12 PM on 23 Jun 2026

Bihar Deputy Chief Minister and Finance Minister Bijendra Prasad Yadav has expressed serious concern over the performance of banks in the state, warning that the issue could be escalated to Prime Minister Narendra Modi if lending indicators do not improve. The remarks were made during the State Level Bankers’ Committee (SLBC) meeting, where officials reviewed banking performance for the 2025–26 financial year.

According to data presented at the meeting, Bihar’s credit-deposit ratio stood at 35.68 percent, significantly below expectations. Against an annual credit target of ₹3.36 lakh crore, banks had disbursed only ₹2.84 lakh crore, achieving about 84.7 percent of the target.

The Finance Minister said repeated warnings had failed to bring meaningful improvement. Officials also highlighted weak lending in key sectors, including agriculture and MSMEs. The government has indicated stricter monitoring of banks in the coming months to improve credit flow and support economic growth across Bihar.