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Banks Rush to Borrow Rs 55,000 Crore! Why This Record CD Surge Signals Trouble Ahead for Indian Finance.

Banking/Finance

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Published on 23rd November 2025, 12:31 PM

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Author

Simar Singh | Whalesbook News Team

Overview

Indian banks are dramatically increasing borrowing via Certificates of Deposit (CDs), with issuances hitting a record Rs 55,000 crore in a recent fortnight. This surge, driven by sluggish deposit growth and a high credit-deposit ratio crossing 80%, signals banks' struggle to fund rising loan demand. It highlights liquidity challenges and a growing reliance on wholesale funding as credit expansion outpaces deposit accretion.