Issuances of Certificate of Deposits (CDs) by banks jumped about 44 per cent per cent (year-on-year) to ₹9.57 lakh crore during April 2024 to February 2025 (up to February 7) from ₹6.66 lakh crore in the corresponding period of the previous year.

The surge in CD issuances comes as banks struggle to attract deposits amid competition from higher-yielding alternatives like mutual funds and bonds.

Similarly, CP (commercial paper) issuances by India Inc stood at ₹12.44 lakh crore during 2024-25 (up to January), up about 15 per cent yoy, from ₹10.84 lakh crore during the corresponding period of the previous year, according to RBI’s latest monthly bulletin.

Corporate bonds issuances at ₹7.25 lakh crore were 19 per cent higher yoy during 2024-25 (up to December) than ₹6.09 lakh crore a year ago.

The aforementioned developments come in the backdrop of banks’ credit growth outpacing deposit growth.

Scheduled commercial banks’ (SCBs’) credit growth was 12.5 per cent as on January 24, 2025 (16.1 per cent a year ago).

SCBs’ deposit growth (excluding the impact of the merger) was at 10.6 per cent as on January 24, 2025, up from 10.2 per cent as at end-December 2024, supported by positive momentum and favourable base effect witnessed in the first fortnight of January 2025.