Banks play a pivotal role in any economy. Banks are the catalyst of all economic activities. The basic functions of banks are firstly to mobilise deposits and secondly to channelise the mobilised deposits into productive activities. In other words, help in capital formation. Moreover, it is through lending banks earns their ‘bread and butter’. Collection of deposits by banks depends on depositors’ confidence on the banks and the return promised by the banks. The more the deposit mobilised, the greater will be the lending power of the banks. The credit deposit ratio, often known as the CD ratio, measures how much a bank lends in relation to the deposits it has raised. The CD ratio indicates the success of the banks in mobilisation of deposits and their contribution to the availability of resources for economic growth of a particular place. This study is an attempt to study the CD ratio in India, among the regions and also select banks. The study reveals that at national level the banks are lending reasonably high percentage of deposits mobilised by them. However, regionally there is wide disparity between the regions. Among the regions North- Eastern Region is having a very poor CD ratio. This region is comparatively less developed than other regions and low CD ratio means banks have a significant role to play to disburse greater credit facilities to borrowers from North- Eastern region.