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Informist, Friday, Mar. 21, 2025

By Kabir Sharma

MUMBAI – No certificates of deposit were issued in the short-term debt market on Friday as banks had met their demand for funds earlier in the week and as they were occupied with meeting their reserve needs, dealers said. "CD issuances usually ease on Friday and today (Friday) was a reporting day also so banks were focusing on their reserve needs," a dealer at a private bank said. "There is still upcoming CD maturities for banks to redeem so some issuers are also waiting for rates to moderate slightly."

IndusInd Bank, which issued CDs on Wednesday and Thursday, was also missing from action on Friday. Rates on three-month CDs remained unchanged at 7.55-7.65% on Friday. Dealers said rates are still high and are expected to ease in April as liquidity conditions improve. 

In commercial papers, INR 46.00 billion was raised compared to INR 60.00 billion raised on Thursday. "Demand in primary market was a little low today and even redemption pressure has eased so issuances were low,"  a dealer at a brokerage firm said. 

Reliance Jio Infocomm was the largest issuer on Friday, raising INR 20.00 billion via a three-month paper at 7.58%. The  National Bank for Agriculture and Rural Development also raised INR 15.00 billion via a three-month paper at 7.56%. On Thursday, NABARD was the largest issuer of CDs, raising INR 25.00 billion. 

Rates on three-month CPs of non-banking finance companies were unchanged from the previous day at 7.82-8.03%. Rates on CPs issued by manufacturing companies were at 7.65-7.85%.

--Primary market

* National Bank for Agriculture and Rural Development, Reliance Jio Infocomm, Bajaj Housing Finance, HDFC Securities, ICICI Securities, Julius Baer, IGH Holding, and Bajaj Finance Securities raised funds via CPs.

--Secondary market

* Bank of Baroda's CD maturing on Monday was traded eight times at a weighted average yield of 6.4193%.

* Small Industries Development Bank of India's CP maturing on Monday was traded four times at a weighted average yield of 6.4246%.

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Tanima Banerjee

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