More Stories

Informist, Wednesday, Oct. 15, 2025

By Vaishali Tyagi

MUMBAI – The short-term debt issuances surged Wednesday on big-ticket borrowing and roll-over requirements for October, dealers said. Issuers rushed to the market to meet their funding needs, they said. Mutual funds were seen actively investing in the debt instruments, they said.

On the certificates of deposit front, issuances surged with Axis Bank and Punjab National Bank cumulatively raising INR 42.5 billion. Axis Bank borrowed INR 35 billion through a one-year paper at 6.44%, while Punjab National Bank raised INR 35 billion through a two-month paper at 5.79%. Canara Bank was the sole CD issuer Tuesday, raising INR 20 billion through an eight-month paper at 6.18%. 

The indicative rates in the CD market remained steady. Indicative rates for three-month CDs were 5.85-5.95%, unchanged from Tuesday. Yields on paper maturing in six months and one year also remained unchanged at 6.15–6.23% and 6.38–6.45%, respectively, dealers said. Dealers said the surplus liquidity in the banking system amid a lack of major scheduled outflows during the day kept most CD issuers on the sidelines. However, traders expect more CD issuances in the coming weeks as more banks are expected to tap the market to meet their festive season disbursement needs and to roll over their upcoming maturities, dealers said.

Borrowing through the commercial paper fell Wednesday owing to requirement-based trading by non-banking financial institutions and manufacturing companies, dealers said. On Wednesday, INR 28.25 billion was raised through commercial paper, down from INR 39.5 billion Tuesday. Bajaj Housing Finance was the largest CP issuer, raising INR 7.5 billion through a three-month paper at 6.02%. The other major issuers included Julius Baer Capital, Aditya Birla Money, ICICI Securities, L&T Finance, and Godrej Consumers. 

The indicative rates in the CP market also remained unchanged Wednesday. Rates on three-month commercial paper issued by manufacturing companies were at 5.95-6.05%, unchanged from Tuesday. Similarly, rates on similar maturity papers issued by non-banking financial companies also remained unchanged at 6.65-6.75%. 

--Primary market

* Godrej Consumers, Redington, Bajaj Housing Finance, Godrej Properties, Godrej Industries, Tata Projects, Axis Securities, Birla Group Holding, Julius Baer Capital, Aditya Birla Money, ICICI Securities, and L&T Finance raised funds through CPs

* Punjab National Bank and Axis Bank raised funds through CDs

--Secondary market

* Indian Bank's CD maturing Thursday was traded thrice at a weighted average yield of 5.4393%

* Tata Communications' CP maturing Thursday was traded thrice at a weighted average yield of 5.3663%

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:

Edited by Saji George Titus

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.