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.
