Short-Question

# What is good CD ratio in banking?

## What is good CD ratio in banking?

What is a good range? A typical range in the Indian banking sector has been between 73-78 percent, going up to 79-80 percent at times. The credit-deposit ratio tells you the condition of the credit demand in the country or the ability of banks to lend.

Which CD ratio is best?

Typically, the ideal loan-to-deposit ratio is 80% to 90%. A loan-to-deposit ratio of 100% means a bank loaned one dollar to customers for every dollar received in deposits it received.

### Is high CD ratio good?

A low CD ratio suggests relatively poor credit growth compared with deposit growth. A high CD ratio would mean strong demand for credit in an environment of relatively slower deposit growth.

What is CD ratio of bank?

Credit-deposit ratio, popularly CD ratio, is the ratio of how much a bank lends out of the deposits it has mobilized. 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 be.

## What is CD ratio as per RBI?

Banks have been advised to achieve a CD Ratio of 60 percent in respect of their rural and semi-urban branches separately on an All-India basis.

Can a bank have too many deposits?

If a bank has excess deposits, it can place these in its reserve account with the central bank (usually earning low or no income), or it can lend them to other banks in the interbank markets. Whilst this will generate some revenue, margins are low.

### What is eye CD ratio?

The cup-to-disc ratio (often notated CDR) is a measurement used in ophthalmology and optometry to assess the progression of glaucoma. The cup-to-disc ratio compares the diameter of the “cup” portion of the optic disc with the total diameter of the optic disc.

What is Rafa in banking?

RAFA stands for Recurring Deposit Account Fixed Deposit Account. The RAFA ratio shows how much deposit a bank has in the form of Recurring and fixed deposits.

## What is LDM bank?

The Lead District Manager (LDM) of the district is the Chairman of the Block Level Bankers’ Committee.