Bihar ranks among the poor states in the country. Now, the scenario is being changed in Bihar under the governance of Nitish Kumar government.

According to the report, the Banks in Bihar have achieved record deposits of more than Rs 56,000 crore during the financial year 2006-07. The figure has gone up by Rs 14,000 crore compared to the last financial year 2005-06.

The Deputy Chief Minister and Finance Minister Sushil Kumar Modi said on this increasing deposits in banks that this is, in fact, a good news for state’s economy. This is an indication of the budding economic activity in the state that was rare in previous government in Bihar.

However, the bigger question is that would the deposits in banks be helpful for state and its economic health in real sense. The report says further that banks have not registered any improvement in the Credit-Deposit Ratio (CDR) in banks. The CDR is remained as low as at less than 40.

Banks pay high rate of interest to the customers on the deposits in the banks during the end of the last financial year. This is being called as the primary reason behind the record deposits in banks this year.

Despite having few branches in the state, the private banks have also got big deposits in the remarkable portion of the total deposit of Rs 56,341 crore.

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