Banks cut CD borrowings by Rs 1.3 lakh crore amid RBI liquidity boost
Outstanding certificates of deposit at Indian banks fell to Rs 5.60 lakh crore as of September 15 from about Rs 6.90 lakh crore in mid-August, a decline of Rs 1.306 lakh crore or 19%, RBI data showed. Liquidity from the FCNR(B) swap window, which pushed system surplus to around Rs 11.2 lakh crore in early September, reduced the need for short-term funding. The call rate fell to 4.97%, said Vineet Jain, senior director, Care Ratings.