Expressing concern over the gradual decline in loan disbursement by banks in Bihar under annual credit plan, Deputy Chief Minister Sushil Kumar Modi on Friday asked banks to increase the ACP's target to 90 to 95 per cent from the existing 54.58 per cent in the current fiscal.
As per the ACP target, Rs 1.45 lakh crore loan has to be disbursed by various banks in Bihar in 2019-20.
"The gradual decline in the ACP is a cause of concern. Banks have been asked to increase up to 90 to 95 per cent of ACP's target of Rs 1.45 lakh crore by the end of the current financial year. Banks have, till December 2019, disbursed 54.58 per cent of the target fixed for 2019-20," Modi said.
Addressing the 71st quarterly State Level Bankers Committee (SLBC) meeting here, the state's finance and commercial taxes minister said banks had distributed loans up to 66.56 per cent of the ACP's target till December 2017, which declined to 57.40 per cent by December 2018.
Till December 2019, a total of Rs 79,138 crore of loans was distributed and the figure is 54.58 per cent of the target, he added.
There are only 3677 bank branches in rural Bihar, Modi asked banks to appoint "Business Correspondent" in all the 8,400 odd panchayats of the state.
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Banks have also been asked to come up with a 'roadmap' giving details of the total number of ATMs, number of Business Correspondents, number of brick and mortar branches in the state at next SLBC meeting which is likely to be held in April or May.
Modi said this would give a clear picture of the banking facilities in the state.
The distribution of new Kisan Credit Card (KCC) has also come down to 1.20 lakh by December 2019 from 3.93 lakh cards distributed by December 2017, Modi said.
The state government has taken a decision to hold a 15-day drive beginning February 12 to provide KCC to farmers who have already been registered under PM-KISAN scheme, the finance minister said.
Under the PM-KISAN scheme, an annual income support of Rs 6,000 is provided to all farmer families across the country in three equal instalments of Rs 2,000 each every four months.
There are around 60 lakh farmers registered under PM Kisan schene, he said adding that government will make its efforts to provide KCC to farmers as much as possible.
The deputy chief minister non-performing assets of banks in Bihar is around 11.50 per cent which close to the national average of 12 per cent.