UP’s credit-deposit ratio crosses 60%, but five districts remain below 40%

The article reporting these findings and the December 2025 quarterly performance was published, detailing the state of UP’s CD ratio and the SLBC’s directives.

The SLBC set targets of reaching a 62% CD ratio by March 2026 and 65% in FY 2026-27, outlining the road map for sustained credit expansion.

The committee announced special focus on districts with low CD ratios by expanding banking outreach, accelerating credit disbursal, and implementing schemes tailored to local needs.

The SLBC directed banks with CD ratios between 40% and 50% to formulate strategies to push their ratios above 50%.

Among private sector banks, South Indian Bank’s CD ratio remained below 40%, attributed to a limited branch network and a deposit-heavy business model in Uttar Pradesh.

The December 2025 quarterly report notes that all eight leading banks recorded an increase in their CD ratios; Union Bank and Central Bank showed an upward trend, while the State Bank of India and Canara Bank registered stronger quarter-on-quarter improvements.

The December 2025 quarterly report identifies five districts—Ayodhya, Azamgarh, Pratapgarh, Ballia and Unnao—that continue to lag in credit disbursal, with their CD ratio remaining below 40%, highlighting persistent district-level lending gaps.

The December 2025 quarter saw UP’s CD ratio rise to 60.39% from 59.56% in September, crossing the 60% benchmark and signaling improved lending activity across the state.

According to the SLBC report, Uttar Pradesh’s credit-deposit ratio stood at 59.56% in September 2025, reflecting the preceding quarter’s level before the December improvement.