Bihar Government Introduces 100-Point Performance Assessment Index to Rank Banks

The Bihar government has for the first time introduced a 100-point performance assessment index to rank banks operating within the state, according to a senior official.

Development Commissioner Mihir Kumar Singh stated that IDFC FIRST Bank currently tops the list with 74 points.

As per a statement issued by the state's Finance Department, banks have been classified into three distinct zones based on their scores. The Green Zone signifies excellent performance and includes 11 banks that have scored 50 points or above. Meanwhile, seven banks fall into the Yellow Zone, and several others—including leading public sector banks—are placed in the Red Zone.

The announcement came during a high-level review meeting attended by senior officials of the Finance Department, the State Level Bankers' Committee, and representatives from both public and private sector banks.

During the meeting, Development Commissioner Mihir Kumar Singh directed banks to operate in a mission mode to meet their annual credit plan targets. He emphasized that deposits mobilized within Bihar must be reinvested back into the state's development.

For the 2026-27 fiscal year, Bihar has established an annual credit plan target of ₹4.95 lakh crore. Official data shows that as of September 30, banks had disbursed ₹1.89 lakh crore, achieving 38.25 percent of the overall target. This disbursement figure is ₹46,228.29 crore higher compared to the corresponding period in the previous year.

A breakdown of the sector-wise credit disbursement indicates that the Micro, Small, and Medium Enterprises (MSME) sector achieved 52.68 percent of its target, recording a credit disbursement of ₹84,091.21 crore against an allocated target of ₹1.59 lakh crore. On the other hand, agriculture credit disbursement stood at ₹43,967.17 crore, which accounts for 28 percent of its specific target.

"The introduction of a structured 100-point performance assessment index by the Bihar government is a notable step toward improving credit flow and accountability at the state level. By classifying banks into distinct zones and closely monitoring MSME and agricultural credit targets, the administration is pushing financial institutions to align local deposit mobilization with regional economic development. For businesses and entrepreneurs in the region, increased institutional focus on meeting credit targets—particularly in the MSME sector—could translate to better access to capital and structured financial support." — Dr. Shishir Gupta, Founder & CEO, StartupLanes