9/4/2024, 3:19:02 pm

Banks' CD ratio at decadal high but deposit growth outpacing credit growth

The credit-deposit (CD) ratio of banks has been at around 80%, reaching a decadal high, a March 2024 report by CareEdge showed. The ratio shows how much of the money banks have raised as deposits has been lent out. A high CD ratio indicates liquidity and credit risks for banks. But the January-March quarterly updates of some banks showed that deposit growth has been outpacing credit growth.