RBI Grade BNABARD ESISEBI
In one line
Context:
According to CareEdge Ratings, the credit-to-deposit (CD) ratio in Indian banks remains below 80% as credit offtake continues to lag deposit growth.
Credit-to-Deposit (CD) Ratio
- The Credit-to-Deposit (CD) Ratio shows the proportion of a bank’s deposits that have been lent out as credit.
- Formula:
Purpose / Importance
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- Measures how efficiently a bank is using its deposits.
- Indicates the health and liquidity of the banking system.
- Used by RBI as a key financial stability indicator.
