**Policy Summary: Addressing Credit Deposit Ratio Anomaly in Uttar Pradesh**
This document summarizes the Indian government's response to a query regarding a potential anomaly in the Credit Deposit Ratio (CD Ratio) calculation for Noida and Ghaziabad, Uttar Pradesh. The question raised concerned whether loans disbursed to factories in these districts were being properly accounted for in the district's CD Ratio, potentially impacting the overall CD Ratio for Uttar Pradesh.
The Minister of State for Finance clarified that the Reserve Bank of India (RBI) Lead Bank Scheme Master Circular RBI2025 2604FIDD.CO.LBS.BC. No.0302.01.001202526, dated 1.4.2025, stipulates that CD Ratios are monitored at the state level based on credit utilization and at the district level based on credit sanction. The circular addresses situations where loans are sanctioned outside the district but utilized within, ensuring they are factored into the district's CD Ratio.
The State Level Bankers Committee (SLBC) of Uttar Pradesh has confirmed that loans disbursed to factories in Gautam Budh Nagar (GB Nagar) and Ghaziabad are included in the CD Ratio of Uttar Pradesh, as advances are accounted for based on the place of utilization. Data indicates an improvement in the CD Ratio of Uttar Pradesh, rising from 51.7% on March 31, 2021, to 59.04% on March 31, 2025. The CD Ratios for GB Nagar and Ghaziabad also improved during the same period, from 54.3% to 60.7% and from 48.5% to 58.6%, respectively.
Key Entities Referenced
Ministry of Finance: A department of the Government of India.
Department of Financial Services: A department under the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
Arun Govil: Member of Parliament who raised the question about Credit Deposit Ratio anomaly.
Pankaj Chaudhary: Minister of State for Finance, who provided the answer to the question.
Reserve Bank of India: The central bank of India (RBI).
Uttar Pradesh: A state in India, where Noida and Ghaziabad are located.
Ghaziabad, Uttar Pradesh: A district in Uttar Pradesh, India, mentioned in the context of Credit Deposit Ratio.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 3549
ANSWERED ON MONDAY, AUGUST 11, 2025/ SRAVANA 20, 1947 (SAKA)
ANOMALY IN CREDIT DEPOSIT RATIO
† 3549. SHRI ARUN GOVIL:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware of the anomaly that the loans disbursed to the factories engaged
in production activities in Noida, Ghaziabad are not accounted for in the Credit Deposit Ratio of
these districts due to which the Credit Deposit Ratio of Uttar Pradesh is comparatively subdued;
and
(b) if so, the steps taken/ being taken by the Government to address the said anomaly?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b): The RBI Lead Bank Scheme – Master Circular RBI/2025- 26/04FIDD.CO.LBS.BC.
No.03/02.01.001/2025-26, dated 1.4.2025, based on the recommendations of Expert Group, constituted
by the Government of India, states that the Credit Deposit (CD) Ratio of banks at State level be
monitored as “Credit as per place of Utilization + Total resource support provided to States under Rural
Infrastructure Development Fund”, and at district level as “Credit as per place of Sanction”. It further
states that, in case of credit proposals received at district level but not sanctionable there due to
limitations of the sanctioning power and sanctioned at bank’s Head office/ controlling offices and the
loan utilised/ disbursed in districts through branches, are treated as loan sanctioned and utilised at
district level. Such loans are factored in the CD ratio of the district. While all loans being utilized for
factories in the State are included in the CD ratio of that State, the loans which are sanctioned and
disbursed outside the district, even though being utilized for factories in the same district, may not be
included in the CD ratio of that district.
State Level Banker’s Committee (SLBC), Uttar Pradesh has informed that the loans disbursed to the
factories engaged in production activities in GB Nagar and Ghaziabad are accounted in the Credit
Deposit Ratio of Uttar Pradesh since advances are accounted as per place of Utilization.
Further, there has been an improvement in the CD Ratio of Uttar Pradesh as well as GB Nagar and
Ghaziabad in last 5 years. CD Ratio of the State has risen from 51.7% as on 31.03.2021 to 59.04% as
on 31.03.2025. The CD ratio of GB Nagar and Ghaziabad during the same period improved from 54.3%
to 60.7% and from 48.5% to 58.6% respectively.
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