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The Bihar government has for the first time introduced a 100-point performance assessment index to rank banks operating in the state, a senior official said on Saturday. IDFC FIRST Bank currently tops the list with 74 points, Development Commissioner Mihir Kumar Singh said.
Banks classified in 3 zones
Banks have been classified into three zones based on their score – Yellow Zone, Green Zone and Red Zone. The Green Zone indicates excellent performance and includes 11 banks scoring 50 or above. Seven banks fall in the Yellow Zone and other banks fall in the Red Zone. The Red Zone includes leading public sector banks,” a statement issued by the state’s Finance Department said.
Top Rankings & Zone Classifications
- Top Performer: IDFC FIRST Bank leads the index with a score of 74 points.
- Other High Scorers: Jammu & Kashmir Bank and RBL Bank follow closely with 68 points each.
- Green Zone (Score of 50 or above / Strong Performance): Comprises 11 banks.
- Yellow Zone (Score of 40 to 49 / Moderate Performance): Comprises 7 banks.
- Red Zone (Score below 40 / Performance below expectations): Includes several major public sector banks, such as the State Bank of India (SBI).
- HDFC Bank (Score: 65) & Bank of Baroda (Score: 64): Maintained their positions safely within the “Green Zone” by meeting benchmark credit requirements.
- State Bank of India (SBI) (Score: 32): Placed in the “Red Zone” alongside other public lenders. The state flagged these institutions for having a CD ratio below 50%, high loan rejection frequencies, and slow processing of public schemes like PM Vishwakarma.
Credit Target
Bihar has set an annual credit plan target of ₹4.95 lakh crore for the 2026-27 fiscal. As of September 30, banks disbursed ₹1.89 lakh crore, achieving 38.25 per cent of the target, officials said. The figure was ₹46,228.29 crore higher than that of the corresponding period last year.
The Micro, Small, and Medium Enterprises (MSME) sector recorded 52.68 per cent achievement, with credit disbursement of ₹84,091.21 crore against a target of ₹1.59 lakh crore. Agriculture credit disbursement stood at ₹43,967.17 crore, or 28 per cent of the target.
Meeting with Banks
At a high-level review meeting here, Singh directed banks to work in mission mode to achieve their annual credit plan targets, stressing that deposits mobilised in Bihar must be reinvested in the state’s development. Senior officials of the Finance Department, the State Level Bankers’ Committee, and public and private sector banks were also part of the meeting.
Singh also issued instructions to banks performing below the state’s average achievement rate of 38.25 per cent in terms of the annual credit plan, particularly major public sector lenders placed in the ‘Red Zone’ of the state index.
Bihar’s credit-deposit ratio (CDR) stood at 60.17 per cent as of September 30, compared with 60.21 per cent at the end of 2025-26, the statement said. Singh expressed concern over several major banks maintaining a CDR below 50 per cent, and asked them to expedite lending, clear pending applications and reduce loan rejection rates, particularly under the Kisan Credit Card and PM Vishwakarma schemes.
According to figures presented at the meeting, loans amounting to ₹8,344.70 crore have been provided to farmers through 7,37,906 Kisan Credit Card accounts, the officials said.
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