In a first, commercial banks' credit-deposit ratio breaches 80% mark

Another rate cut will make mobilising resources tough

Commercial banks’ credit-deposit (CD) ratio has, for the first time, topped the 80 per cent mark — the upper end of the regulatory comfort zone — signalling resource mobilisation challenges for lenders at a time when loan demand seems to be picking up in the economy. Commercial banks’ CD ratio was 80.21 per cent for the fortnight ended October 31, RBI data showed. 

The crucial banking ratio was over 80 per cent at the end of the last two reporting fortnights in October, Reserve Bank of India (RBI) data showed. In September too, it had crossed the 80 per cent