Udupi Banks Called to Boost Credit-to-Deposit Ratio to 50%

In a recent directive, banking regulators in Udupi District have urged local banks to lift their credit-to-deposit ratio to 50%, a move aimed at tightening loan quality and strengthening the banking sector’s resilience.

The target ratio, which reflects the proportion of loans issued relative to deposits received, is intended to curb an uptick in non-performing assets and ensure that banks maintain a healthy loan portfolio. By tightening credit standards and encouraging prudent lending, regulators hope to reduce default risk and safeguard depositor funds.

With banks across the district now expected to comply, depositors may see more stable banking services and a lower risk of liquidity crunches, while the broader economy benefits from a more robust financial infrastructure. Source: Google News – Udupi District.