Below Quote on Bank`s CD ratio By Ajit Kabi, Banking analyst at LKP Securities
As the deposit growth rate is slower than the credit growth rate; we believe the CDR to rise this quarter. CDR is expected to stay flat for FY24 as the deposit growth is likely to go up. The higher CDR obstructs the banks to grow as the banks have to maintain an adequate regulatory LCR level. We estimate the credit growth to be around 15% for FY24; around 400bps higher of India’s nominal GDP. Deposit growth is expected to be at 11% as the banks are raising the deposit rates.
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