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Informist, Friday, Oct. 3, 2025

MUMBAI – Issuances in the short term debt market fell further on Friday as companies had met requirements earlier in the week and also as liquidity in the banking system remained comfortable, dealers said. Commercial paper issuances dropped to INR 6 billion Friday from INR 43.75 billion on Thursday while there were no certificate of deposits issued for the third day in a row. 

Indian oil was again the largest borrower in the market for the second consecutive day, raising INR 2.5 billion through a paper maturing mid-december at 5.78%. Tata Projects raised INR 2 billion through a three-month paper at 6.04%. 

Ample liquidity surplus and low funding needs kept banks from tapping the certificates of deposit market for the third day in a row on Friday. The RBI Thursday net absorbed INR 1.77 trillion from the banking system, a proxy for systemic liquidity surplus, higher than INR 1.66 trillion on Wednesday. The government's salary and pension payments are expected to infuse nearly INR 1 trillion worth of liquidity into the system, market participants said. A 25-bps cut in the cash reserve ratio will come into effect Saturday, which is expected to infuse INR 600 billion to INR 700 billion of durable liquidity into the system. This will be second 25-bps cut in the CRR, of the 100 bps of cut announced in August, and will bring down the CRR to 3.50%.

Indicative rates for three-month CDs were 5.85-5.90%, unchanged from Wednesday. 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 6.35–6.40%, 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., ICICI Securities, Tata Projects raised funds through CPs.

* No banks raised funds through CDs.

End

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

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