Plunge in Bank Paper Signals Sluggish India Loan Market: Chart

(Bloomberg) -- Here’s another sign that Indian corporate lending is unlikely to recover soon. The outstanding amount of certificates of deposit issued by banks has slid to a decade low as poor demand for loans in Asia’s third-largest economy and an overhang of money in the banking system is limiting the need for fresh funds. With overall loan-growth near the lowest since the 1980s, CD volumes are expected to remain subdued, Karthik Srinivasan, group head of financial sector ratings at ICRA Ltd., the Indian unit of Moody’s Investors Service, said in an Oct. 16 report.