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Informist, Friday, Nov. 7, 2025

By Vaishali Tyagi

NEW DELHI – Issuances in the short-term debt market rose Friday as banks and companies sought to meet their rollover requirements for November, dealers said. Mutual funds were active buyers of these debt instruments. "Companies and banks are tapping the market for rollover and portfolio needs," a dealer at a brokerage firm said.

On the certificates of deposit front, four banks together raised INR 33.00 billion. Bank of Baroda borrowed INR 10.00 billion through a six-month paper at 6.43%. Karur Vysya Bank also raised INR 10.00 billion by issuing a three-month paper at 6.14%. Bank of India raised INR 8.00 billion through a three-month paper at 6.04% and HDFC Bank borrowed INR 5.00 billion by issuing a six-month paper at 6.25%.

Dealers said that even though issuances rose, indicative rates on CDs were steady due to strong demand from mutual funds, which are major investors in this market. Indicative rates for three-month CDs were 6.00-6.10%, unchanged from Thursday. Yields on six-month and one-year CDs also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.

"Liquidity is back to comfortable levels, and investors with cash (mostly mutual funds) are investing it in these instruments," the dealer quoted above said. "Issuers are getting a good response, meeting their rollover needs smoothly," the dealer said. The Reserve Bank of India's net absorption from the banking system – a proxy for liquidity surplus – was INR 2.32 trillion on Thursday, up from INR 2.11 trillion the previous day.

Total issuances of commercial papers rose to INR 33.75 billion on Friday. Tata Capital was the largest CP issuer. It raised INR 6.50 billion through a three-month paper at 6.50%. The other major CP issuer was Bajaj Housing Finance Ltd., which raised INR 5.00 billion through paper maturing in three months at 6.07%. Kotak Securities Ltd. raised INR 5.00 billion through a three-month paper at 6.66%. Most of the non-banking financial companies tapped the market to roll over upcoming maturities, dealers said. Other CP issuers included Julius Baer Capital Ltd., Network 18 Ltd., Godrej Properties Ltd., and Motilal Oswal Financial Services Ltd.

Indicative rates on CPs remained unchanged Friday as most of the demand from issuers was easily met by investors. Rates on three-month papers issued by manufacturing companies remained unchanged from Thursday at 6.03-6.13%. Rates on papers of similar maturity issued by non-banking finance companies were at 6.66-6.77%, also broadly unchanged from Thursday.

--Primary market

* Bajaj Housing Finance, Network 18, Godrej Properties, Tata Capital, Kotak Securities, Bajaj Finance Securities, Julius Baer Capital, Motilal Oswal Financial Services raised funds through CPs

* Bank of India, Karur Vysya Bank, Bank of Baroda, and HDFC Bank raised funds through CD

--Secondary market

* IDFC First Bank's CD maturing on Monday was traded once at a weighted average yield of 5.2948%

* HDFC Securities' CP maturing Monday was traded thrice at a weighted average yield of 5.2704%

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 Ashish Shirke

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