Udupi Banks Urged to Raise Credit‑to‑Deposit Ratio to 50%

Banking regulators have urged banks operating in Udupi district to raise their credit‑to‑deposit (CD) ratio to 50% in order to expand lending for local enterprises.

The CD ratio measures how much lending a bank does against the deposits it holds; while the national target is 50%, Udupi’s banks have hovered around 38% in the last fiscal year, constraining credit to SMEs and the agricultural sector.

An increase in the ratio would free up more capital for small‑scale entrepreneurs and farmers to obtain affordable loans, potentially spurring local economic growth and job creation. Source: Google News – Udupi District.