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Informist, Tuesday, Oct. 28, 2025

By Vaishali Tyagi

MUMBAI – Primary issuances in the certificates of deposit market rose Tuesday on big-ticket borrowing by Bank of Baroda and Indian Bank, dealers said. Issuances of CDs rose to INR 46.00 billion from INR 35.00 billion Monday as Bank of Baroda raised INR 20.00 billion through papers maturing in May at 6.25% and Indian Bank borrowed INR 15.0 billion by issuing three-month CDs at 5.95%. 

Punjab National Bank raised INR 6.00 billion through three-month CDs at 5.96%, while Union Bank of India raised INR 5.00 billion through the issuance of CDs maturing in three months at 5.97%. Banks tapped the short-term debt market to fulfil their funding requirements amid lower liquidity in the banking system, dealers said. Mutual funds were seen actively investing in the debt instruments, they said.

Indicative rates for three-month CDs were 5.93-6.03%, unchanged from Monday. Yields on papers with six-month and one-year maturities also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively, dealers said.

In contrast, commercial paper issuances fell Tuesday, dealers said. CP issuances fell sharply to INR 40.25 billion on Tuesday, compared to INR 103.00 billion Monday. Motilal Oswal Financial Services was the biggest CP issuer, borrowing INR 12.00 billion at 7.06% through papers maturing in three months. Tata Capital Housing and ICICI Securities raised INR 5.00 billion each through three-month papers. 

Godrej Industries, Godrej Properties, Kotak Securities, and Cholamandalam Finance also issued CPs. Most companies raised funds through three-month papers. The indicative rates for CP remained unchanged amid low issuances. Rates on three-month CPs issued by manufacturing companies were 5.98-6.07% on Tuesday, the same as Monday. Rates on similar maturity papers issued by non-banking financial companies were at 6.66-6.77%, broadly unchanged from 6.65-6.77% Monday, dealers said.

--Primary market

* Tata Capital Housing, Godrej Industries, Godrej Properties, Kotak Securities, ICICI Securities, Cholamandalam Finance, and Motilal Oswal Financial Services raised funds through CPs

* Indian Bank, Punjab National Bank, Union Bank of India, and Bank of Baroda raised funds through CDs

End

Edited by Saji George Titus

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