India’s CP issuances hit ₹62,300 crore in September amid festive lending surge

Private-sector commercial-paper (CP) issuances in India reached approximately ₹62,300 crore in September, while bank certificate-of-deposit (CD) raising stood at about ₹1.04 lakh crore, according to industry data. The funding surge was driven by high working-capital demand ahead of the festival season and slower deposit growth, forcing banks to seek alternative short-term funding. Analysts suggest the reliance on CP and CD funding may tighten liquidity and raise short-term yields if deposit momentum does not improve. 

Market watchers will monitor whether this increases pressure on monetary policy and credit cost dynamics.