Indian banks to stick with certificates of deposit after 2024 supply jumps 50%
1 week, 2 days ago

Indian banks to stick with certificates of deposit after 2024 supply jumps 50%

Live Mint  

By Dharamraj Dhutia MUMBAI, Dec 31 - Indian banks will continue to rely on certificates of deposit for meeting short-term cash needs in the next quarter amid tight liquidity conditions, after fundraising through these instruments rose 50% year-on-year in 2024. BY THE NUMBERS Banks issued CDs worth 12.23 trillion rupees in 2024 till Dec. 27, data from information provider Prime Database showed. Banks are rolling over CDs to manage redemption pressures and also leveraging them as a quicker funding tool to supplement deposit growth for supporting economic expansion. The reliance on CDs may continue in the last quarter of the fiscal year, as liquidity is expected to be tighter due to factors such as increased lending, asset-liability mismatches and higher statutory outflows, said Mataprasad Pandey, vice president at financial advisory firm Arete Capital.

Indian Liquidity Banks Deposit Deposit Growth Cds  supply  liquidity  jumps  deposit  indian  2024  banks  cds  stick  shortterm  50  rupees  tight  quarter  certificates  growth  higher

History of this topic

SBI Dismisses Concerns About Flagging In Banking Sector's Deposit Growth
4 months, 2 weeks ago

SBI Dismisses Concerns About Flagging In Banking Sector's Deposit Growth

News 18  

State Bank of India, India’s largest lender and public sector bank, in its report, has dismissed the concerns about the flagging in the banking sector’s deposit growth. The report highlighted that in the Financial Year 23, the banking sector, particularly All Scheduled Commercial Banks, registered the highest absolute growth in both deposits and credit since 1951-52. Meanwhile, the credit expanded …

As Deposit Growth Slows, Banks Innovate with Alternative Funding: RBI
4 months, 2 weeks ago

As Deposit Growth Slows, Banks Innovate with Alternative Funding: RBI

News 18  

Banks are tapping alternative sources like commercial paper and certificates of deposit as deposit growth lags credit growth, RBI August Bulletin said on Monday. This increase amid deposit growth lagging credit expansion prompted banks to rely on alternative funding sources, as per the RBI article. While unveiling bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das expressed concern over household savings …

Indian banks to see record credit growth of over ₹19 trillion in FY23: Icra
2 years ago

Indian banks to see record credit growth of over ₹19 trillion in FY23: Icra

Live Mint  

New Delhi: Indian banks are likely to witness a record high credit growth, surpassing the ₹19 trillion in the current fiscal year, domestic rating agency Icra said on Monday. Further, the growth momentum is expected to remain strong in FY2024 as well, even though rising interest rates and tight liquidity conditions could moderate the growth,” said Anil Gupta, senior vice …

Bank deposit rates set to rise sharply soon: Report
2 years, 5 months ago

Bank deposit rates set to rise sharply soon: Report

The Hindu  

Given the rising interest rate regime along with increasing credit demand, banks will be forced to sharply hike their deposit rates in coming months, a report said on July 28. While banks have been more calibrated in hiking their card rates on deposits, interest rate hike on deposits will be aggressive in the coming months as credit growth picks up …

Discover Related