The JD(U) has won just two of Bihar's 40 Lok Sabha seats. His former partner the BJP has won 31 along with its allies in the polls that saw Mr Kumar's arch political rival Narendra Modi winning a decisive mandate to become Prime Minister.
Yesterday, Mr Kumar, 63, said, "I respect the mandate of the people."
His resignation may precipitate snap polls in the state that is due for assembly elections only in November next year.
After the split with the BJP and several senior members of his party leaving the JD(U) before the election, Nitish Kumar was running a minority government in the state. There was speculation the dissent within his party will grow, with support from the opposition.
Yesterday, six ministers who had been critical of his decision to part ways with the BJP last year did not attend a cabinet meeting that Mr Kumar had called.
In the 243-seat Assembly, the JD(U) has 115 members and has been propped up by the controversial support of two LJP members, five from Lalu Prasad's RJD and two Independents.
As news of the drubbing for Mr Kumar's party came in on Friday, BJP leader Sushil Kumar Modi, his former deputy, said, "Nitish Kumar should take moral responsibility and resign. He has lost the confidence of the people."
Mr Kumar's defeat is seen by many as the fallout of his decision to snap ties with 17-year-old ally BJP last year over Mr Modi's elevation.
The Bihar chief minister is among those who faults the BJP leader for not doing enough to stop the 2002 riots on his watch in Gujarat, in which more than 1000 people were killed, most of them Muslims.
A Supreme Court inquiry has found no evidence to prosecute Mr Modi.
"The people of Bihar have rejected his campaign against Modi," said BJP spokesperson Nalin Kohli.
In 2009, Nitish Kumar's party, in alliance with the BJP, had won 20 seats. Then junior partner BJP had won 12 that year.
Source: NDTV
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