Mumbai, Jan. 8 -- State Bank of India on Wednesday tapped the short-term debt market to raise around Rs.6,000 crore through certificates of deposit (CDs) at a rate of 6%, a rare move by India's largest lender, amid tight liquidity and mounting pressure on banks to mobilize deposits, five fixed-income traders told Mint.

SBI's presence in the CD market has raised eyebrows, traders said, as it signals growing difficulty among banks in raising deposits to fund rising credit demand.

The funds were raised through CDs maturing in March 2026. Union Bank of India also raised Rs.200 crore via May maturity paper at 6.45%, while Small Industries Development Bank of India raised Rs.4,500 crore through one-year paper at 6.95%.

Certificates of deposi...