Bank Credit-Deposit Ratio Stays Below 80%, Says CareEdge
Why in the news
CareEdge found loan growth still slower than deposit growth, so the system’s CD ratio stays under 80%.
Key facts
- Agency: CareEdge Ratings.
- Reading: CD ratio below 80%.
- Cause: weak credit offtake against deposits.
About the CD ratio
- Proportion of deposits that a bank has converted into loans.
- Shows how efficiently deposits are used and signals system health and liquidity.
- Tracked by RBI for stability.
Exam angle
- Full form: Credit-to-Deposit ratio.
- Agency: CareEdge Ratings.