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Informist, Wednesday, Nov. 12, 2025

By Vaishali Tyagi

NEW DELHI – Borrowing through the short-term debt market fell Wednesday owing to low requirement of funds amid comfortable liquidity, dealers said. Wednesday, INR 39.75 billion was raised through commercial paper, down from INR 73.25 billion on Tuesday, while INR 15.00 billion was mobilised through certificates of deposit against INR 96.50 billion the previous day. Some mutual funds, which were major investors in the short-term debt papers, were active on both buying and selling fronts in the secondary market, dealers said.

"Many traders were absent due to low funding needs and good liquidity in the system, while some are investing where it suits them, but most rollover requirements have already been met which kept the issuances low today (Wednesday)," a dealer at a brokerage firm said. The central bank's net absorption from the banking system--a proxy for liquidity surplus--was INR 2.11 trillion Tuesday, up from INR 2.01 trillion Monday. 

Bajaj Finance was the biggest CP issuer Wednesday, raising INR 15 billion through the issuance of a three-month paper at 6.50%. ONGC Petro Additions raised INR 4 billion through the issuance of paper maturing in six months at 6.58%. Kotak Securities also issued CP to raise INR 3 billion through three-month paper at 6.64%. Sundaram Finance also raised funds through CP. 

Due to balanced demand and supply, rates in the secondary market remained unchanged. The indicative rates on CP remained unchanged Wednesday as demand from issuers was easily met by mutual funds, dealers said. Rates on three-month papers issued by manufacturing companies remained steady at 6.03-6.13%. Rates on papers of similar maturity issued by non-banking finance companies were at 6.65-6.75%, also broadly unchanged from Tuesday. 

On the CD side, most banks stayed on the sidelines Wednesday after fulfilling their rollover requirements, dealers said. With ample liquidity surplus and low funding needs, dealers are avoiding borrowing from the market, keeping indicative CD rates unchanged, they said. Wednesday, Punjab National Bank raised INR 15 billion through three-month CD at 5.98%.

Dealers said indicative rates on CDs remained largely unchanged Wednesday. Indicative rates on three-month CDs were 6.00-6.08% on Wednesday compared with 5.99-6.07% from Tuesday. Yields on six-month and one-year CDs remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.

--Primary market

* Bajaj Finance, Kotak Securities, ONGC Petro Additions, Sundaram Finance raised funds through CPs

* Punjab National Bank raised funds through CD

--Secondary market

* Punjab National Bank's CD maturing on Thursday was traded five times at a weighted average yield of 5.2568%

* Reliance Retail Ventures' CP maturing Thursday was traded eight times at a weighted average yield of 5.2806%

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 Akul Nishant Akhoury

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