Bihar: A Financial Overview

Socio-economic Profile

Bihar

India

Population

103 million

1.15 billion

Poverty ratio

42.56%

37.2%

Overall literacy rate

47.50%

65.20%

SC population

15.70%

16.20%

ST population

0.90%

8.20%

Avg. land holding

0.75 ha

1.57 ha

Human development index

0.367

0.472

Infrastructure development index

91.31

100

*Source census of India 2011

 Potential Microfinance Clients

Estimate of No. of Poor Households in Bihar (2011)
Population of Bihar in 2011*

103 million

Total no of Households**

20.61 million

Number of Rural Households (89.54% of total)

18.46 million

Number of Urban Households (10.46% of total)

2.15 million

No. of Rural BPL Households ( 42.1%  of rural population)***

7.76 million

Urban BPL Households (34.6% of urban population)****

746,167

Total BPL Households

8.50 million

*Assumed annual growth rate of 1.63% p.a. during 2001-11 as per national average for India 1991-2001, All India census data 2011.
** Assuming five person per Households.
*** Rural poverty ratio in rural Bihar is 42.1% for 2004-05 (Source: CSO, NSSO Survey Reports)
**** Rural poverty ratio in urban Bihar is 34.6% for 2004-05 (Source: CSO, NSSO Survey Reports)

Microfinance Outreach

A. SHG Coverage
Total Number of SHGs credit linked in the state[1]

92,008

Total Number of Households Covered (13 members/households per SHG)

1,196,104

Percentage of BPL Households as SHG members#

15.61%

B. MFI Coverage
Total Number of clients/households covered by MFIs(Assuming one client per household)*

236,343

Percentage of BPL Households as MFI clients#

3.1%

C. Percentage of Poor Households covered by Microfinance

18.7%

[1] Source: NABARD data for March 2008. Note: Total BPL households estimated to be 7.67million in 2008.
# assuming all SHG members and MFI clients are BPL
* Source: SADHAN, The Microfinance Quick Report, 2008 & MFI Reports.
Credit Demand of Poor Households in Bihar and the Supply Gap

Demand
Credit requirement per poor HH per annum (Assumed)  
(a) Rural Rs. 6,000
(b) Urban Rs. 10,000
Total Credit Demand for Rural BPL households per annum Rs. 41,945 million
Total Credit Demand for Urban BPL households per annum Rs. 6,730 million
Total Credit Demand for all BPL households per annum Rs. 48,675 million
Supply  

Estimated Annual credit supply from Banks and MFIs during 2007-08*

Rs. 2,128 million
Demand-Supply Gap

96%

 


 

 

 

 

 

 

 

 

*  Data Source: Reserve Bank of India

  • Bihar’s investment cum credit – deposit ratio is 37% vis-a-vis the National Average of 80%.
  • Total deposits of all banks in Bihar in June 2010 were INR 996,360 million, the loan was 321,090 million, and the credit deposit ratio was 32.23%.
  • The credit deposit ration has shown a steady increase w.e.f. 2008-09.
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