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Informist, Friday, Jun. 13, 2025

By Siddhi Chauhan

MUMBAI – Borrowing through certificates of deposits rose sharply Friday due to heavy rollover requirements next week, dealers said. According to the data compiled by Informist Media, CDs worth INR 330.25 billion are set to mature in the week ending Jun. 20. 

In light of the heavy redemptions, CDs worth INR 63 billion were raised Friday, sharply up from INR 30 billion Thursday. Meanwhile, fundraising through commercial papers on Friday fell to INR 13 billion from INR 19 billion on the previous day.

"The demand that we have seen today (Friday) was mostly driven by rollover requirements," a dealer at a state-owned bank said. "Most of the issuers raising funds today were not very active this week. But they had to fulfil their requirements, so they tapped the market before the maturity date."

Axis Bank was the largest CD issuer Friday, raising INR 30 billion through a three-month paper at 5.89%, followed by Punjab National Bank, which raised INR 20 billion through a three-month paper at 5.86%. On Thursday, Axis Bank was the sole CD issuer, raising INR 30 billion through a three-month paper at 6.38%.

The demand in the CP market was tepid Friday, with only three issuers tapping the short-term debt market. National Bank for Agriculture and Rural Development was the largest CP issuer, raising INR 6 billion through a three-month paper at 5.89%. ICICI Securities and Axis Securities were the other two issuers raising INR 3 billion each through three-month papers at 6.33% and 6.34%, respectively. 

"The demand was very weak today because issuers were quoting lower levels, which was not acceptable to investors," a dealer at a brokerage firm said. "Trades were also low in the secondary segment as no one would want to keep a carry for two days."

Indicative rates on three-month papers issued by non-bank finance companies were unchanged at Thursday's level of 6.20–6.40%. Similar tenor papers issued by manufacturing companies were also flat at Thursday's level of 5.90–6.10%. Indicative rates on three-month CDs issued by banks were unchanged at 5.80–6.00%. 

--Primary market

* ICICI Securities, Axis Securities and National Bank for Agriculture and Rural Development raised funds through CPs.

* Union Bank, Punjab National Bank and Axis Bank raised funds through CDs.

--Secondary market

* Punjab National Bank's CD maturing Monday was traded once at a weighted average yield of 5.4000%.

* HDFC Securities' CP maturing Tuesday was traded once at a weighted average yield of 5.5854%.

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 Saji George Titus

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