Which financial metric evaluates the proportion of total deposits that commercial bank branches in Haryana deploy as loans and advances within the state?

💡 Solution & Explanation

The Credit-Deposit ratio measures how much of the money banks mobilize through deposits within a specific region is reinvested locally as credit to spur economic activity. A low CD ratio indicates that banks are siphoning local savings to invest in securities elsewhere rather than funding local enterprises and agriculture. State-level financial reviews closely monitor district-wise CD ratios to ensure equitable credit flow across Haryana.