More Stories

Informist, Tuesday, Sept. 16, 2025

By Shravani Chandiwade

MUMBAI – Funds raised through certificates of deposit on Tuesday totalled INR 100.00 billion as banks looked to fulfil their funding needs towards the end of the September quarter. Issuances in the commercial paper market were down from Monday as manufacturing and non-banking financial companies had already borrowed aggressively last week, dealers said.

"Only a few banks tapped the market, but they all majorly borrowed large sums of funds as the quarter-end period is nearing," a dealer at a state-owned bank said.

Only three banks tapped the market as the majority of the banks remained on the sidelines due to ample liquidity surplus and some have already met their upcoming maturities, dealers said. Banks are seen raising funds either to meet their roll-over requirements or to fund fresh loans, they said.

Punjab National Bank was the largest issuer, cumulatively raising INR 35.00 billion for three months at varying rates. The bank raised INR 20.00 billion at 5.79% and INR 15.00 billion at 5.78%. Canara Bank had the largest single issuance Tuesday, as it raised INR 30.00 billion via a three-month CD at 5.80%.

"As this month-end will mark the end of the second quarter of this financial year, banks are seen rolling over their CDs...," a dealer at another state-owned bank said. "Lending and redemption takes off during this period plus with the aim of managing their finances prior to quarterly results. It is no surprise that banks are raising funds via big-ticket issuances."

By the end of the week, goods and services tax outflows are expected to start and are likely to drain out around INR 1.8 trillion from the banking system, dealers said. Hence, rates are likely to tick up during that period, they said. As per latest data from the RBI, the central bank net absorbed INR 1.90 trillion from the banking system on Monday, sharply lower than INR 2.66 trillion Sunday.

The indicative rates for CDs of both longer and shorter tenure were unchanged from Monday, dealers said. Rates on three-month CDs were 5.80–5.85%, rates on six-month CDs were 6.15–6.20% and those on one-year papers were 6.35–6.40%, they said.

The total amount raised from the commercial paper market Tuesday was INR 72.75 billion, slightly lower than INR 82.75 billion on Monday. Indian Oil Corp. Ltd. was the largest issuer in the CP market, raising INR 30.00 billion via a three-month paper at 5.82%. The other big issuer was Reliance Retail Ventures Ltd. The company raised INR 20.00 billion through a three-month paper at 5.87%.

On Tuesday, indicative rates for commercial papers issued by non-banking financial companies for a three-month tenure were 6.70–6.75% and rates for manufacturing companies issuing the same tenure paper stood at 5.95–5.98%, dealers said.

The turnover of CDs in the secondary market on Tuesday was INR 94.80 billion, down from INR 114.60 billion Monday. Total trades in commercial papers in the secondary market were INR 50.60 billion, down from INR 53.40 billion on Monday.

--Primary market

* ICICI Securities, Kotak Securities, Godrej Industries, Tata Projects, Indian Oil Corp., Reliance Retail Ventures, Larsen and Toubro Finance, and Birla Group Holdings raised funds through CPs.

* Punjab National Bank, Canara Bank, and Bank of Baroda raised funds through CDs.

--Secondary market

* Punjab National Bank's CD maturing Wednesday was traded four times at a weighted average yield of 5.4983%.

* Larsen and Toubro Finance's CP maturing Wednesday was traded four times at a weighted average yield of 5.4994%.

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

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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.