Even as banking activity in Uttar Pradesh gathers pace, five districts — Ayodhya, Azamgarh, Pratapgarh, Ballia and Unnao — continue to lag in credit disbursal, with their credit-deposit (CD) ratio remaining below 40%.
In contrast, the state’s overall CD ratio rose to 60.39% in the December 2025 quarter, up from 59.56% in September, surpassing the 60% benchmark. A healthy CD ratio, a key indicator of how much of a bank’s deposits are deployed as loans, typically ranges between 60% and 80%.
Data from the State-Level Bankers’ Committee (SLBC), the apex forum for coordinating banking and development programmes in the state, shows a steady improvement in lending trends. In Uttar Pradesh, Bank of Baroda serves as the SLBC convenor and regularly reviews performance, financial inclusion and credit expansion.
The report submitted by the SLBC to the state government shows that the state’s CD ratio improved from 59.56% in September 2025 to 60.39% in December 2025.
The SLBC has now set a target of achieving a 62% CD ratio by March 2026 and 65% in FY 2026-27.
Quarterly improvement
All eight leading banks recorded an increase in their CD ratio during the December quarter.
The Union Bank and Central Bank showed an upward trend and the State Bank of India and Canara Bank performed better on a quarter-on-quarter basis.
Among private sector banks, South Indian Bank’s CD ratio remained below 40%, attributed to a limited branch network and deposit-heavy operations in the state.
The committee has directed banks with a CD ratio between 40% and 50% to formulate strategies to push it above 50%.
The committee has clarified that special focus will be given to districts with low CD ratios by expanding banking outreach, accelerating credit disbursal, and implementing schemes tailored to local needs.
December 2025 quarterly report
Ayodhya: 36.84%
Azamgarh: 38.00%
Pratapgarh: 38.85%
Ballia: 35.29%
Unnao: 33.37%
www.hindustantimes.com
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