Decline in loan to deposits ratios in banks is because of lower money creation by RBI and substantial increase in banks profits: Nomura

New Delhi [India], August 26 (ANI): The decline in loan-to-deposit ratios (LDR) within the banking system has been attributed to lower money creation by the Reserve Bank of India (RBI) and higher profits accrued by banks over the past two years, according to Nomura report.

One of the contributors to the decline in systemic LDR is the lower net money creation by the RBI over the fiscal year 2023-24. Cumulative net fresh mo