Bihar's Credit-Deposit Ratio Holds Above 60%

The credit‑deposit ratio, a key indicator of a state’s banking health, measures the proportion of credit extended by banks to the deposits they hold. In Bihar, the ratio has stayed above the 60% threshold in the most recent quarterly assessment. This level suggests that banks in the state are efficiently channeling deposits into productive lending. Economists view a ratio above 60% as a sign of robust credit flow, which can support economic growth and infrastructure development. The state’s Department of Finance has noted the sustained ratio as a positive sign for investors and has urged banks to maintain prudent lending practices.