Cash Deposit Ratio (CDR) of Scheduled Commercial Banks during 2000-2012

Cash Deposit ratio (CDR) indicates how much of a banks core funds are being used for lending, the main banking activity. A higher ratio indicates more reliance on deposits for lending and vice-versa . Scheduled Commercial Banks are those banks, which carry on business of banking in India and which are included in the second schedule to the Reserve Bank of India Act, 1934. These include the State Bank of India, other Indian Banks and Foreign Banks.

During 2000-12, CDR of State Bank of India declined by 31.6% from 7.6 in 2000-01 to 5.2 in 2011-12. During this period , CDR of foreign banks increased by 27.3% from 6.6 in 2000-01 to 8.4 in 2011-12 and CDR of other scheduled banks declined by 29.3% from 8.2 in 2000-01 to 5.8 in 2011-12.

In 2010-11, State Bank of India reached to its highest CDR (10.1) of last ten years and it was also highest among all the scheduled banks for this particular year. In 2007-08, Foreign Banks reached to its highest CDR (11.5) of last ten years. In 2011-12, CDR of Foreign Banks was lying above all other scheduled banks with CDR of 8.4.