CD RATIO

Above 50% or less than 69%

CD ratio is an index of the health of banking system in terms of demand for credit in proportion to total

deposit growth in the banking sector. A declining CD ratio implies that banking sector was flush with

funds without any corresponding demand for credit affecting the bank's profitability in the long run as

they have to pay interest to depositors without corresponding income from the credit outflow.

Answered by manish kumar, 07 Apr 03:06 am

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2.

Between 60 & 70 is ideal.

By definition Cash ratio would mean - Total value of cash and marketable securities divided by current

liabilities. For a bank this is the cash held by the bank as a proportion of deposits in the bank. The cash

ratio measures the extent to which a corporation or other entity can quickly liquidate assets and cover

short-term liabilities, and therefore is of interest to short-term creditors, also called liquidity ratio or

cash asset ratio.

Answered by Kavita Prsd, 07 Nov '09 11:10 pm

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2.

It is known as CD Ratio - Credit to Deposit Ratio in banking parlance.

This refers to the percentage of total advances divided by the total deposits of a Bank/ Branch. This

signifies what proportion of total deposit is lent to borrowers.

Answered by S. Ramesh, 07 Nov '09 12:50 pm

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3.

Ratio of cash in banks account and the loans given by it

Answered by Yogita, 07 Nov '09 12:50 pm

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The amount of a bank's loans divided by the amount of its deposits at any given time. The higher the
ratio, the more the bank is relying on borrowed funds, which are generally more costly than most
types of deposits.

Read more: http://www.investorwords.com/2861/loan_deposit_ratio.html#ixzz12FnI1guf

Loan-To-Deposit Ratio - LTD

What Does Loan-To-Deposit Ratio - LTD Mean?

A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. This number,
also known as the LTD ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have
enough liquidity to cover any unforseen fund requirements; if the ratio is too low, banks may not be earning as much as they
could be.

Investopedia explains Loan-To-Deposit Ratio - LTD

In 2008, the FDIC reported that statewide LTD ratios in the United States ranged from a low of 56% in Utah to a high of
170% in North Dakota. The statewide ratios compare all loans to all deposits for all banks with their home base in that state.
These ratios are used to determine whether a bank will be allowed to open or acquire a branch outside of its home state,
and this ratio is often used by policy makers to determine the lending practices of financial institutions.