Bank credit-deposit ratio: Work to restore normalcy in system continues

RBI wants banks to explain how they plan to bring it down but has set no specific target

Last week, CRISIL Ratings said that securitisation volumes rose to Rs 45,000 crore in Q1 FY24, up 17 per cent year-on-year (Y-o-Y); over 95 originators tapped this route, compared to 80 in FY23. Of this lot, the majority were non-banking financial companies (NBFCs) seeking to diversify funding sources. This follows the Reserve Bank of India (RBI) increasing risk weights on credit exposures to NBFCs.
 

But what went largely unnoticed was that banks were also more active in this market: Their transaction volumes reached Rs 8,500 crore in this period compared to Rs 10,000 crore in for the