Banks Raise Rs 55K Crore via CDs Amid Deposit Slowdown

Banks in India have been borrowing a lot of money by issuing something called certificates of deposit (CDs).

In the two weeks ending November 14, they raised Rs 55,000 crore through CDs, which is double what they borrowed in the previous two fortnights.

This is the highest amount since September.

The total amount of CDs outstanding is now at a record high of Rs 5.34 trillion.

Banks are doing this because they need more money to lend out, but people are not depositing as much money in banks as before.

The credit-deposit ratio, which shows how much banks lend compared to how much they have in deposits, has gone above 80%, which is higher than the comfortable limit.

This means banks are facing challenges in getting enough deposits to cover their lending.

CDs help banks manage their money better and are a cheaper option than other ways of borrowing.