High Credit-Deposit Ratio Does Not Signal Funding Constraint for Banks: RBI Bulletin

High credit-deposit ratio does not signal funding constraint for banks: RBI bulletin

RBI in its report said the credit-deposit ratio of scheduled commercial banks rose from 68.6 per cent in September 2021 to 82.2 per cent in March 2026. The incremental credit-deposit ratio had peaked at around 114 per cent in May 2026 before declining thereafter.

Deposit per se may not be a binding constraint for credit creation: RBI bulletin

RBI bulletin argues that credit creation and deposit creation are simultaneous, not bounded by initial deposits, and CD ratios alone don’t signal funding constraints.

High credit-deposit ratio doesn’t indicate funding vulnerability of banks: RBI Bulletin

New Delhi, Sep 26 (SocialNews.XYZ) A high credit-deposit (CD) ratio may not, by itself, indicate vulnerability in a banking system witnessing high credit growth, the latest RBI Bulletin has said. Since FY23, growth in bank... - Social News XYZ