IndusInd bank raises additional Rs 2,750 crore via CDs, says CCIL data

IndusInd Bank on Wednesday raised an additional Rs 2,750 crore by issuing certificates of deposit (CDs) across a range of maturities at a coupon rate of 7.90 per cent, according to data by Clearing Corporation of India Limited (CCIL).

 

On Monday, the lender had raised Rs 11,000 crore by issuing CDs across a range of maturities, with coupon rates varying between 7.80 per cent and 7.90 per cent, which included Rs 2,000 crore via a 12-month CD at 7.9 per cent.

 

This marked a 15 basis points (bps) increase from the rates the bank offered on its CDs in the previous week. On March 10, the bank raised Rs 1,890 crore by issuing 12-month CDs at a coupon rate of 7.75 per cent.

 

 

The bank’s fundraising through CDs comes at a time when it is actively working to bolster its funding position. The bank’s liquidity coverage ratio (LCR) fell to 113 per cent as of March 9, 2025, compared to 118 per cent at the end of December 2024.

 

LCR remained above the regulatory requirement of 100 per cent.

 

The spike in the cost of deposits put further pressure on the net interest margins (NIMs) of the bank in the current quarter. The bank’s NIM fell from 4.25 per cent in Q1 of the current financial year to 4.08 per cent in Q2, and then dipped to 3.93 per cent in Q3.

 

According to the Reserve Bank of India (RBI), IndusInd Bank’s capital adequacy ratio stood at 16.46 per cent, while the provision coverage ratio (PCR) was 70.2 per cent for the quarter ending December 31, 2024.