Module 6: Deposits & Credit Expansion Trends in Bihar

📖 Chapter 7 of 10 🧩 Module 7 of 18 ⏱️ ~2 min read 💡 1 MCQs

Topic Part 1 of 2

During the fiscal year 2019-20, aggregate bank deposits in Bihar recorded a growth of 6.3 percent (an absolute increase of Rs. 22,428 crore) over the previous year. During the same period, total bank credit expanded by Rs. 15,392 crore, translating to a significantly higher growth rate of 12.8 percent.

National Growth Benchmarks (2019-20):

All-India growth rate in bank deposits: 9.5 percent
All-India growth rate in bank credit: 7.1 percent
Credit growth in Bihar (12.8%) outpaced the national average (7.1%), while deposit growth (6.3%) remained below national pace (9.5%).

Disproportionate National Shares:

Bihar's share in total deposits of Scheduled Commercial Banks stood at 2.7 percent in 2019-20 (identical to 2018-19).
Bihar's share in total bank credit improved marginally from 1.2 percent to 1.3 percent in 2019-20.
Macro Concern: Despite hosting 8.6 percent of India's population, Bihar accounts for only 2.7% of deposits and a mere 1.3% of national credit. The fact that bank credit in Bihar accounts for just about 1 percent of India's aggregate credit flow is a serious developmental impediment.

⭐ Key Points

Bihar's share in total deposits of Scheduled Commercial Banks stood at 2.7 percent in 2019-20 (identical to 2018-19).
Bihar's share in total bank credit improved marginally from 1.2 percent to 1.3 percent in 2019-20.
Macro Concern: Despite hosting 8.6 percent of India's population, Bihar accounts for only 2.7% of deposits and a mere 1.3% of national credit. The fact that bank credit in Bihar accounts for just about 1 percent of India's aggregate credit flow is a serious developmental impediment.

📌 One-line Q&A

Bihar's share in total deposits of Scheduled Commercial Banks stood at ______ percent in 2019-20 (identical to 2018-19). — 2.7
Bihar's share in total bank credit improved marginally from ______ percent to 1.3 percent in 2019-20. — 1.2
Macro Concern: Despite hosting 8.6 percent of India's population, Bihar accounts for only 2.7% of deposits and a mere 1.3% of national credit. The fact that bank credit in Bihar accounts for just about 1 percent of India's aggregate credit flow is a serious developmental impediment.

Questions 1 MCQs

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What was the annual growth rate of bank credit in Bihar during 2019-20?

Total bank credit expanded by 12.8 percent in Bihar during 2019-20, outpacing the national average of 7.1%.

Question 1 of 1

One-liners

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Bihar's share in total deposits of Scheduled Commercial Banks stood at ______ percent in 2019-20 (identical to 2018-19).

2.7

Bihar's share in total bank credit improved marginally from ______ percent to 1.3 percent in 2019-20.

1.2

Macro Concern: Despite hosting ______, Bihar accounts for only 2.7% of deposits and a mere 1.3% of national credit. The fact that bank credit in Bihar accounts for just about 1 percent of India's aggregate credit flow is a serious developmental impediment.

8.6 percent of India's population