Banks raise over Rs 1 trn through CDs in Dec amid liquidity crunch

In an effort to fortify their balance sheets before this quarter’s end, commercial banks have raised Rs 1.16 trillion through certificates of deposit (CDs) in December -- a period marked by tight liquidity conditions.

This is the first time in the ongoing financial year that CD issuances have surpassed the Rs 1 trillion threshold in a month, according to data from the Clearing Corporation of India (CCIL). 

CDs, which are short-term debt instruments, are utilised by banks to raise funds. In November, banks had raised Rs 75,884 crore via these instruments.

This surge in CD issuances comes as deposit growth