Indian lenders are paying the highest premium for short-term funds in six years due to sluggish deposit growth and a surge in borrowing. Outstanding CDs have reached a record high of 6.64 trillion rupees ($71.04 billion) over the past two years, a rise of 75% from the previous year. Despite expectations of interest rates to decrease next month, bankers believe this may be smaller than in previous years. The reliance on CD funding has increased this year as credit growth outpaces deposits. The FBIL three-month CD benchmark rate jumped to 7.41%, while the three-months treasury bill yield stood at 5.31%. The spread that banks pay to access funds has also jumped to 210 basis points, levels last seen in March 2020.