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Informist, Wednesday, Oct. 1, 2025

By Kabir Sharma

MUMBAI – In an otherwise bleak short-term debt market on Wednesday, Indian Oil Corp. raised INR 35 billion through a commercial paper maturing in mid-December at 5.77%. Dealers said issuances were muted as market participants were waiting for rates to adjust after the Reserve Bank of India's Monetary Policy Committee meeting concluded earlier in the day. In a unanimous decision, the committee left the policy repo rate unchanged at 5.50%, the central bank's Governor Sanjay Malhotra said. It also retained its 'neutral' policy stance.

Bajaj Fianance Securities was the second-largest issuer, raising INR 4 billion through a commercial paper maturing at December-end at 5.51%. Godrej Properties raised INR 1.75 billion through a mid-December paper at 5.99%, and INR 1.5 billion through a three-month paper at 6.00%.

Ample liquidity surplus and low funding needs kept banks from tapping the certificates of deposit market for the second day in a row on Wednesday. The RBI Tuesday net absorbed INR 780.21 billion from the banking system, which is a proxy for systemic liquidity surplus, higher than INR 550.06 billion on Monday. The liquidity improved due to the government's salary and pension payouts, which is expected to add a total of INR 1.00 trillion to INR 1.50 trillion to the systemic liquidity this week.

Indicative rates for three-month CDs were 5.85-5.90%, unchanged from Tuesday. Yields on papers with six-month and one-year maturities also remained unchanged. Yields on six-month tenure CDs were 6.10–6.15%, and those on one-year papers were 6.35–6.40a%, dealers said.

Indicative rates for three-month papers issued by non-banking financial companies were at 6.65-6.70%, and yields on similar-term papers issued by manufacturing companies were at 5.95-6.00%.   

--Primary market

* Indian Oil Corp., Godrej Properties, Bajaj Finance Securities, and Godrej Industries raised funds through CPs.

* No banks raised funds through CDs.

--Secondary market

* Union Bank of India's CD maturing Friday was traded four times at a weighted average yield of 5.4036%.

* Godrej Properties' CP maturing Friday was traded twice at a weighted average yield of 5.6045%.

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 Avishek Dutta

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