Banks step up CD issuances sharply

Outstanding issuances touch all-time high at %5.70 lakh cr

- CHRISTINA TITUS

BANKS ARE RUSHING to garner short-term funds through certificate of deposits (CDs) on the back to rising credit demand and sluggish deposit mobilisation.This has seen CD rates scaling higher as banks continue to rely on CDs to plug short-term funding gaps, as the market is witnessing sustained pressure on rates, despite recent 25 basis points (bps) monetary easing.