Banks, financial institutions raise Rs 1.17 trillion via CDs in two weeks

Banks and financial institutions (FIs) raised over ₹1.17 trillion through certificates of deposit (CDs) during March 7-21, the highest in a fortnight since May 2021, according to Reserve Bank of India (RBI) data.

 

This period saw IndusInd Bank aggressively tapping the CD market with its liquidity coverage ratio declining after its disclosure of discrepancies in its derivatives portfolio. The bank’s liquidity coverage ratio fell to 113 per cent as of March 9, 2025, compared to 118 per cent at the end of December.

 

The surge in CD issuances also highlights tightening deposit conditions in the banking system, prompting banks to