Patna. Rural banks are lagging behind in keeping pace with scheduled public and private banks due to lack of capital. Compared to other banks, non-performing assets (NPAs) of rural banks are continuously increasing. Rural banks also need capital to compete with other banks in rural areas. For this reason, now the state government will give Rs 84.87 crore to North and South Gramin Banks of Bihar.
Bihar government will give Rs 84.87 crore to rural banks
Along with increasing its share capital in rural banks, the central government had also asked the state government to increase its capital. In view of this, the Bihar government has decided to give 84.87 crores for the recapitalization of both North and South Bihar Gramin Bank of the state. The state government will give this amount to the Gramin Bank from the contingency fund. In this, 57.79 crore will be given to South Bihar Gramin Bank and 28.06 crore to North Bihar Gramin Bank.
South Bihar Gramin Bank’s NPA is 50 percent of the total loan
Non-performing assets (NPAs) of both North and South Bihar Gramin Bank in Bihar are continuously increasing. The NPA of Dakshin Bihar Gramin Bank (SBGB) is about 50 per cent of the total loans of the bank and NPA of North Bihar Gramin Bank (UBGB) is more than 23 per cent. Because of which the financial health of both the banks has deteriorated. Bihar is an agricultural state, in such a situation, rural banks have a special importance.
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