Credit Deposit Ratio Calculator

✖Total Advances refers to the total amount of loans and advances extended by a financial institution to its customers.ⓘ Total Advances [TAdv]			+10% -10%
✖Total Deposits refers to the aggregate amount of funds held by a financial institution from its customers in the form of deposits.ⓘ Total Deposits [TD]			+10% -10%

✖Credit Deposit Ratio provides insight into how much of a bank's funding is being used to extend loans.ⓘ Credit Deposit Ratio [CDR]

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Formula

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Credit Deposit Ratio

Formula

`"CDR" = ("TAdv"/"TD")*100`

Example

`"60"=("450000"/"750000")*100`

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Credit Deposit Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Credit Deposit Ratio = (Total Advances/Total Deposits)*100
CDR = (TAdv/TD)*100
This formula uses 3 Variables

Variables Used

Credit Deposit Ratio - Credit Deposit Ratio provides insight into how much of a bank's funding is being used to extend loans.
Total Advances - Total Advances refers to the total amount of loans and advances extended by a financial institution to its customers.
Total Deposits - Total Deposits refers to the aggregate amount of funds held by a financial institution from its customers in the form of deposits.

STEP 1: Convert Input(s) to Base Unit

Total Advances: 450000 --> No Conversion Required
Total Deposits: 750000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CDR = (TAdv/TD)*100 --> (450000/750000)*100

Evaluating ... ...

CDR = 60

STEP 3: Convert Result to Output's Unit

60 --> No Conversion Required

FINAL ANSWER

60 <-- Credit Deposit Ratio

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 11 Financial Institutions Management Calculators

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Go Loan Loss Provision Coverage Ratio = (Pre-Tax Income+Loan Loss Provision)/Net Charge Offs

Loan Default Rate

Go Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued)

Capital Adequacy Ratio

Go Capital Adequacy Ratio = (Tier One Capital+Tier Two Capital)/Risk Weighted Asset

Operational Efficiency Ratio

Go Operational Efficiency Ratio = (Operating Expense+Cost of Goods Sold)/Net Sales

Return on Operating Assets

Go Return on Operating Assets = modulus(Net Income)/Operating Assets

Net Interest Margin

Go Net Interest Margin = Net Interest Income/Average Interest Earning Assets

Cash Reserve Ratio

Go Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100

Tier 1 Capital Ratio

Go Tier One Capital Ratio = Tier One Capital/Risk Weighted Asset

Credit Deposit Ratio

Go Credit Deposit Ratio = (Total Advances/Total Deposits)*100

Debt Yield

Go Debt Yield = Net Operating Income/Loan Amount

Net Worth

Go Net Worth = Total Assets-Total Liabilities

Credit Deposit Ratio Formula

Credit Deposit Ratio = (Total Advances/Total Deposits)*100
CDR = (TAdv/TD)*100

What is Credit Deposit Ratio?

The Credit Deposit Ratio indicates the extent to which a bank relies on deposits as a source of funding for its lending activities. A higher CD Ratio suggests that a larger portion of the bank's deposits is being used to provide loans, while a lower ratio indicates a smaller proportion of deposits being utilized for lending.
Banks typically aim to maintain an optimal CD Ratio that balances the need to extend loans with the requirement to maintain liquidity and stability. A high CD Ratio may indicate potential liquidity risks if the bank faces a sudden withdrawal of deposits, while a low ratio may suggest underutilization of available funds for lending, potentially impacting profitability.
Overall, the Credit Deposit Ratio is an essential metric for assessing a bank's lending activities, liquidity position, and overall financial health. It is closely monitored by regulators, investors, and analysts to evaluate the bank's risk profile and performance.

How to Calculate Credit Deposit Ratio?

Credit Deposit Ratio calculator uses Credit Deposit Ratio = (Total Advances/Total Deposits)*100 to calculate the Credit Deposit Ratio, The Credit Deposit Ratio is a financial metric used to measure the proportion of a bank's loans relative to its deposits. Credit Deposit Ratio is denoted by CDR symbol.

How to calculate Credit Deposit Ratio using this online calculator? To use this online calculator for Credit Deposit Ratio, enter Total Advances (TAdv) & Total Deposits (TD) and hit the calculate button. Here is how the Credit Deposit Ratio calculation can be explained with given input values -> 60 = (450000/750000)*100.

FAQ

What is Credit Deposit Ratio?

The Credit Deposit Ratio is a financial metric used to measure the proportion of a bank's loans relative to its deposits and is represented as CDR = (TAdv/TD)*100 or Credit Deposit Ratio = (Total Advances/Total Deposits)*100. Total Advances refers to the total amount of loans and advances extended by a financial institution to its customers & Total Deposits refers to the aggregate amount of funds held by a financial institution from its customers in the form of deposits.

How to calculate Credit Deposit Ratio?

The Credit Deposit Ratio is a financial metric used to measure the proportion of a bank's loans relative to its deposits is calculated using Credit Deposit Ratio = (Total Advances/Total Deposits)*100. To calculate Credit Deposit Ratio, you need Total Advances (TAdv) & Total Deposits (TD). With our tool, you need to enter the respective value for Total Advances & Total Deposits and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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