Banks Tap Record Rs 13.17 Lakh Cr via CDs in 2025 Amid Weak Deposit Growth

• Banks raised a record Rs 13.17 lakh crore through Certificates of Deposit (CDs) in 2025, up from Rs 12.34 lakh crore in 2024.
• The surge is driven by weak deposit growth, particularly low-cost CASA deposits, and strong credit demand.
• Bank of Baroda, HDFC Bank, and Punjab National Bank were among the top issuers of CDs.
• Most CD issuances are short-tenor rollovers, not long-term funding, influenced by interest rate expectations.
• CD yields initially moderated but are now firming up due to tight liquidity and anticipated end of rate-cut cycle.

Why It Matters: Banks rely heavily on record CD issuances to fund credit amid weak deposit growth and liquidity challenges.