Published Paper Details:

It is the ratio of how much a bank lends out of the deposits it has mobilised. It indicates how much of a bank's core funds are being used for lending, the main banking activity. A higher ratio indicates more reliance on deposits for lending and vice-versa . CD ratio helps in assessing a bank's liquidity and indicates its health - if the ratio is too low, banks may not be earning as much as they could be. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforeseen fund requirements, may affect capital adequacy and asset liability mis-match. A very high ratio could have implications at the systemic level. Expressed as a percentage, CD ratio is computed as under:- Total Advances Credit Deposit Ratio= ----------------- *100 Total deposit The study has carried out with a purpose to present the performance of public sector banks through the c-d ratio in last decades by classifying credits and deposits along with the percentage. The current study is an attempt to find out the various factors that justify the performance of commercial banking in Bihar through c-d ratio. In the current scenario the credit-deposit (C-D) ratio of the banking system remained around 78 per cent, it was significantly higher at 90.3 per cent for PVBs as at end-March 2016. Keywords: - Per capita Deposits and Credits, CD ratio of Schedule Commercial Bank, CD Ratio of Districts