Banks in Udupi District Encouraged to Raise Credit‑to‑Deposit Ratio to 50%

Local banking officials in Udupi district have called on banks to raise their credit‑to‑deposit ratio to 50 percent, a key metric of financial stability. The directive follows a review of the banks’ asset quality and the need to balance loan growth with adequate funding sources.

The loan-to-deposit ratio has been below the desired threshold for several years, limiting the sector’s ability to extend new credit. Increasing the ratio is expected to ensure that banks have sufficient deposits to support higher loan volumes while maintaining prudent risk management.

An improved ratio could lead to more credit availability for businesses and households in the district, bolstering local economic development. This guidance aligns with central bank policy to promote resilient banking operations across India. Source: Google News – Udupi District.