Banks' CD ratio to moderate to 75% over FY25-27: Report

BANKS ARE LIKELY to see some relief on the credit deposit (CD) front as the ratio may to moderate to 75% over FY25-FY27, from nearly 80% in the current fiscal, largely led by a lower credit growth and slightly higher deposit growth, brokerage Emkay Institutional Equities said in a report on Thursday.

- PIYUSH SHUKLA

This assumes significance as the Reserve Bank of India (RBI) has reportedly nudged certain lenders with CD ratios over 100% to lower it to around 70%-80% level.

Private lenders like HDFC Bank, IDFC First Bank and Axis Bank had a CD ratio of 110%, 102% and 93% as on Q3FY24end, respectively, whereas public sector banks' average CD ratio was lower at 72%.