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SSCBankingNABARD / RBI

Bank Loan-to-Deposit Ratio at Record 81% in December Quarter

8 January 20261 min read
ECONOMYBankLoan-to-DepositRatio at Record 81%in December Quarter8 January 2026safalsetu.com

Why in the news

Banks lent out a record share of deposits in the December quarter, raising funding worries and the chance of costlier deposits.

Key facts

  • LDR measures the part of deposits used for lending.
  • Higher LDR: aggressive lending. Lower LDR: surplus liquidity.
  • 81% is historically high and signals tighter liquidity.

Drivers

  • Strong demand for retail loans and MSME credit.
  • Slower flow of household savings into deposits.
  • Competition from market-linked instruments and small savings schemes.

Exam angle

  • Record figure: 81%.
  • LDR compares loans with deposits.
  • Implication: pressure on deposit rates.

Test yourself

1. What record level did India's banking loan-to-deposit ratio reach in the December quarter?

The LDR touched an all-time high of 81%.

2. An LDR of 81% means banks lent how much for every ₹100 of deposits?

It means ₹81 of loans per ₹100 of deposits.

3. Which of these is cited as a factor behind the LDR rise?

Savings were diverted to market-linked instruments and small savings schemes.

This topic is part of Daily Current Affairs 6 & 7 January 2026 (19 topics).

All topics of the dayDay quizJanuary 2026

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