Credit-to-deposit ratio of banks falls 50 bps since March as deposit growth slows

The credit-to-deposit ratio (CD ratio) of commercial banks has decreased by 50 bps since March, indicating a slowdown in credit growth due to slower deposit growth. Despite expectations of stable rates and stagnant deposit rates, there may be further pressure on loan growth. The latest data from the Reserve Bank of India shows a decline in the CD ratio, suggesting that banks are lending less in proportion to the deposits they collect.
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