Banks step up borrowing via CDs amid deposit tightness; raise ₹77,875 cr

Outstanding CD issuance tops record ₹5.7 trn during the period

Banks have stepped up borrowing through certificates of deposit (CDs), with the banking system raising nearly ₹78,000 crore through this route in the fortnight ended November 28, reflecting the increasing tightness in deposit accretion, which, in turn, is keeping the credit-deposit ratio of the system elevated. Banks are likely to keep tapping this route in the coming weeks and months as credit growth in the system is showing signs of picking up while deposit growth lags. 

According to the latest data from the Reserve Bank of India (RBI), banks raised ₹77,875 crore through CD issuances in the November