PSU Banks’ share in CD issuance rises to 69% from 6% in three years

June 26, 2025

Public sector banks increased certificate of deposit issuance since 2022. Their market share rose significantly. Private banks initially led CD issuance during Covid. PSBs dominated after February 2022. Liquidity drives CD issuance. CD issuance reached a high in early 2025 due to credit demand. Private banks have longer CD tenors. PSBs use CDs for short-term funding.

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