More Stories

Informist, Friday, Mar. 28, 2025

By Kabir Sharma

MUMBAI – The last trading day of the financial year was a muted one for the short-term debt market as no funds were raised through certificates of deposit. "Mostly issuers have met their funding needs for the month and also there is a gap of 5 days, so that also reduced some borrowing interest," a dealer at a state-owned bank Friday said. "Liquidity is at a better condition now, that is also an added factor."

Indian financial markets are closed Monday for Eid and on Tuesday for year-end closing of accounts of banks. Banks were absent from the market on Friday after raising INR 65.00 billion on Thursday.

Banks were also missing from action as liquidity conditions in the system improved. According to RBI data, banks parked INR 2.02 trillion at the RBI's Standing Deposit Facility on Thursday, while the liquidity deficit shrank as the government's month-end spending likely added at least INR 1.50 trillion into the banking system since Tuesday, dealers said. Net liquidity injected by the central bank, a proxy for the liquidity deficit, dropped to a mere INR 130.30 billion from INR 1.57 trillion on Tuesday. 

In commercial papers, INR 12.00 billion was raised on Friday. LIC Housing Finance raised INR 10.00 billion via a 6-month paper at 7.55% and HDB Financial Services raised INR 2.00 billion via one-year paper at 7.42%. 

--Primary market

* LIC Housing Finance and HDB Financial Services raised funds via CPs.

--Secondary market

* Punjab National Bank's CD maturing on Tuesday was traded 17 times at a weighted average yield of 9.2224%.

* Export Import Bank of India's CP maturing on May 7 was traded four times at a weighted average yield of 8.0001%

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 Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.