It is the lotto de gewinnzahlen quoten ratio of how much a bank lends out of the deposits it has mobilised.
RBI does not stipulate a minimum or maximum level for the ratio, but a very low ratio indicates banks are not making full use of their resources.
In the case of Indian banks, a credit-deposit ratio of over 70 per cent indicates pressure on resources as they have to set aside funds to maintain a cash reserve ratio.5 per cent and a statutory liquidity ratio of 23 per cent.
Banks can lend out of their capital, but it is not considered prudent to.The stands-2019 stands4 LLC.A very high ratio could have implications at the systemic level.CD ratio helps in assessing a bank's liquidity and indicates its health - if the ratio is too low, banks may not be earning as much as they could.The ratio has hardened above 75 in the past 2 years as high inflation has dented deposit activity.Expressed as a percentage, CD ratio is computed as under: Credit-Deposit Ratio, total Advances * 100, total Deposits, as of end of FY13, CD ratio for Indian banking industry stood.1.WHY IS IT considereey parameter?Images Illustrations of credit-deposit ratio.What IS credit-deposit ratio?But such a situation is considered extreme as there are not many known instances of banks overstreching themselves.But, the Reserve Bank has voiced concerns over the current ratio of banks as it could have financial stability implication at the systemic level.
Wiktionary(0.00 / 0 votes)Rate this definition: credit-deposit ratio(Noun) (in India) the proportion of loan-assets created by banks from the deposits received.
As of 6th September 2013, CD ratio was.52, implying that for every Rs 100 of deposits, banks are lending as much as.5.
At present, the credit-deposit ratio for the banking sector as a whole is 75 per cent.
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The regulator does not stipulate a minimum or maximum level for the ratio.But, a very low ratio indicates banks are not making full use of their resources.Translation, find a translation for the credit-deposit ratio definition in other languages: Select another language: - Select - (Chinese - Simplified) (Chinese - Traditional español (Spanish) (Japanese português (Portuguese deutsch (German) (Arabic).Thus,.52 indicates that banks are borrowing from the market to lend for projects and working capital rather than from lower-cost deposits.Credit-deposit ratio of banks is a gauge of industry health, as it's the ratio of how much a bank lends out of the deposits it has mobilised.If the reserve requirements such as the statutory liquidity ratio of 23 and cash reserve ratio of 4 are factored in, the CD ratio should not cross.Don't keep it to yourself.It indicates how much of a bank's core funds are being used for lending, the main banking activity.With deposits growing at a lower rate of 14 vis-à-vis credit growth.9, for fortnight ended 20th September 2013, the incremental credit deposit ratio has risen to 83, indicating that for every new Rs 100 deposit, Rs 83 is being lent.Moreover, the balance sheet would also be unhealthy with asset-liability mismatches.Nearby related entries: Alternative searches for credit-deposit ratio : Thanks for your vote!Alternatively, a high ratio indicates more reliance on deposits for lending and a likely pressure on resources.