The surge in CD issuances comes at a time when banks are grappling with sustained pressure on low-cost deposits.
The bank has raised over Rs 16,500 crore of certificate of deposits this month, so far, against a monthly run-rate of Rs 2,000 – 3,000 crore till February
Moneycontrol reported on March 18 that state-owned banks subscribed to the bulk of Rs 12,850-crore worth of certificates of deposits issued by IndusInd Bank
The liquidity in the banking system, which was in the deficit mode for the so long has started getting in to surplus mode since June 27 due to government spending.
Amid tight liquidity in the banking system, banks have raised Rs 1.50 lakh crore in June.
So far in this month, the central bank conducted seven VRRR auctions to remove excess surplus liquidity from the banking system.
In an interview to CNBC-TV18, SS Mundra, Chairman, Bank of Baroda and Arun Kaul, Chairman, UCO Bank spoke about impact of RBI relief on MTM losses.
CNBC-TV18‘s Gopika Gopakumar reports that money has become cheaper for banks with CD (certificate of deposit) rates crashing by 2 percentage points on repo cut and the RBI assurance on liquidity levels