Certificates of Deposit (CDs) in India show higher issuances due to credit growth, liquidity needs, and investor dynamics, with PSBs and mutual funds playing key roles.

• Credit growth and tight liquidity boost CD issuances, while volatility and rate hikes reduce them.
• Public sector banks (PSBs) rely more on CDs, offering lower costs, but spreads narrowed post-July 2022.
• Mutual funds dominate CD investments (85%), while small finance banks face higher risk-adjusted rates.