More Stories

Informist, Tuesday, Nov. 4, 2025

By Vaishali Tyagi

MUMBAI – Primary market issuances through certificates of deposit doubled on Tuesday on big-ticket borrowing by Bank of Baroda, HDFC Bank, and Indian Bank, dealers said. Issuances of CDs rose to INR 64.0 billion from INR 32.0 billion on Monday as Bank of Baroda raised INR 40.0 billion through papers maturing in one year at 6.43% and HDFC Bank borrowed INR 12.0 billion by issuing one-year CDs at 6.45%. 

Indian Bank raised INR 10.0 billion through one-year paper at 6.42%, while Small Industries Development Bank of India raised INR 2.0 billion by issuing CDs maturing in one year at 6.49%. Banks tapped the short-term debt market to fulfil their funding requirements and rollover requirements, dealers said. 

Indicative rates for three-month CDs were 6.00-6.10%, unchanged from Monday. Yields on six-month and one-year papers also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.

Dealers said that investors, particularly mutual funds, showed strong interest in issuances amid easing liquidity conditions. The central bank's net absorption from the banking system--a proxy for liquidity surplus--was INR 1.11 trillion Sunday. The liquidity surplus has been above the INR 1 trillion mark since Friday due to the government's month-end inflows for salaries and pension payments, dealers said. Additionally, a cut in the cash reserve ratio to 3.25% of net demand and time liabilities of banks came into effect Saturday and freed up INR 700 billion of liquidity.

In contrast, commercial paper issuances fell on Tuesday, dealers said. CP issuances fell to INR 9.0 billion on Tuesday from INR 44.0 billion the previous day. Kotak Securities was the biggest CP issuer, borrowing INR 5.0 billion at 6.78% through papers maturing in four months. Aditya Birla Money raised INR 1.5 billion, while Aseem Infrastructure Finance borrowed INR 2.5 billion. Both of these companies raised funds through three-month papers. 

Dealers said due to requirement-based participation, rates in the three-month papers issued by manufacturing remained unchanged at 6.03-6.13% from Monday. Rates on similar maturity papers issued by non-banking financial companies were 6.66-6.77%, broadly unchanged from Monday.

--Primary market

* Aseem Infrastructure Finance, Kotak Securities, and Aditya Birla Money raised funds through CPs

* Bank of Baroda, Indian Bank, HDFC Bank, and SIDBI raised funds through CDs

--Secondary market

* Canara Bank's CD maturing on Thursday was traded thrice at a weighted average yield of 5.2758%

* Sikka Ports and Terminals' CP maturing Thursday was traded four times at a weighted average yield of 5.2940%

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 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.