Source: Reuters (via feed)
Indian lenders are paying the steepest premiums for short-term funds in six years. Deposit growth remains sluggish. This has led to greater dependence on certificates of deposit (CDs). Borrowings via CDs have reached a record high.
The premiums being paid for short-term funds have not been seen since the Covid-19 crisis. These developments occurred amid slow deposit inflows. Indian lenders continue to manage short-term fund costs under these conditions.
BizTrendWire Insight:
Indian lenders are currently paying premiums for short-term funds last seen during the Covid-19 crisis. Borrowings through certificates of deposit have reached record levels.
Indian lenders are currently paying premiums for short-term funds last seen during the Covid-19 crisis. Borrowings through certificates of deposit have reached record levels.
