Banks keep term deposit rates unchanged as CDs rise
In short
Banks did not raise term deposit rates in October and instead used more certificate of deposit funding. The summary said net incremental CD issuance was ₹19,905 crore, and the weighted average rate went up to 6.93%.
This matters because it shows how banks are raising money without lifting deposit rates. The report does not say which banks led the move or how long it may last.
What the reporting says
Banks held off increasing term deposit rates in October while relying more on certificate of deposit issuance for resource mobilisation. BusinessLine’s summary said net incremental CD issuance was ₹19,905 crore and the weighted average rate rose to 6.93%, while term deposit rates stayed unchanged. The immediate takeaway is cheaper funding for banks, but the source does not name which lenders moved or whether the trend will continue.
Why it matters
Banks held term deposit rates steady and leaned on certificate of deposit issuance for funding in October. The publisher summary says net incremental CD issuance was ₹19,905 crore and the weighted average rate rose to 6.93%. That points to a bank funding shift, but the reporting does not name individual lenders or say whether deposit pricing pressure will build later.