The banks’ CD ratio crossed the 80 percent mark in March 2024 and March 2025 and has been above 80 percent since September 2025, data from CAREEDge Ratings shows. Private banks have relatively higher CD ratio than public sector lenders. Banks are facing a challenge in mobilizing deposits due to the shift of customers to other, higher-yielding products. This also limits their ability to further cut deposit rates even as lending rates have fallen following the repo rate cuts, leading to shrinking margins, according to analysts.
As of October 31, total loan offtake rose to ₹193.9 lakh crore, up 11 per cent year-on-year (yoy). Holiday demand, GST rate cuts, continued retail and SME activity and some corporate lending amid rising bond yields all contributed to the rise.
Strong vehicle financing during the festive period is also expected to further boost credit growth. Meanwhile, this growth was lower than the 12 percent growth in the same period last year due to weaker corporate demand and reduced lending to certain segments.
Bank deposits, meanwhile, rose 10 percent year-on-year to ₹241.7 lakh crore, a moderation from the 11 percent growth a year earlier. The softer expansion reflects the impact of the ongoing rate cut cycle, which has made alternative investment options relatively more attractive than traditional bank deposits.
Published on November 21, 2025
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