Indian banks, on Tuesday, raised Rs 2,695 crore through Certificates of Deposits (CDs).

A CD is a negotiable money market instrument. CDs are issued in multiples of 1 lakh. The maturity period of CDs issued by banks should neither be less than 7 days nor greater than one year.

HDFC bank raised Rs 2,195 crore in two tranches. It sold Rs. 1,695 crore of three-month notes with an interest rate of 3.5 percent and rest of the amount at 5.28 percent interest rate through one year notes.

Industry and development bank of India (IDBI), sold Rs 200 crore of 5.40 percent one-year notes.

State bank of Hyderabad raised Rs. 200 crore of 5 percent notes maturing in Aug. 20, 2010.

Axis bank sold Rs. 100 crore of 5.46 percent one year notes. Indian banks had issued Rs 1,250 Crore of CDs on Monday.