Several banks are heavily borrowing short-term funds from the debt market amid flight of liquidity from the banking system, which till recently had surplus funds in excess of Rs 100,000 crore.
Tight liquidity conditions have forced several banks to borrow short-term funds through issue of certificate of deposits (CDs). The State Bank of India (SBI), Punjab National Bank (PNB), IDBI Bank, Central Bank of India, Union Bank of India and Uco Bank were the major borrowers in the market this week.
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