Banks turn to CD issuances in Sep amid deposit woes
Business Standard|September 26, 2024
Raise ₹5.4 trn compared to ₹3.2 trn in same period of last FY
ANJALI KUMARI
Banks turn to CD issuances in Sep amid deposit woes
Facing sluggish deposit growth, banks turned to issuing certificates of deposit (CDs) in September to mobilise funds. Banks have issued ₹1.35 trillion worth of CDs so far this month, marking a 65 per cent increase compared to the amount raised in August, despite a rise in rates, according to data from the Clearing Corporation of India.

The amount raised through CDs in September was the second-highest monthly figure in the current financial year (2024-25), following ₹1.45 trillion raised in June, according to data from PRIME Database.

Banks have issued ₹7.78 trillion worth of CDs in the current calendar year until August 2024, compared to ₹4.9 trillion in the same period of 2023, registering a 59 per cent growth.

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