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Informist, Tuesday, Nov. 18, 2025

By Vaishali Tyagi

MUMBAI – Fundraising through short-term debt instruments rose sharply Tuesday as banks and companies sought to meet their rollover requirements ahead of upcoming maturities, dealers said. In the remaining week, commercial papers worth INR 244.64 billion and certificate of deposits worth INR 30.50 billion are set to mature, data available on Clearing Corp. of India and compiled by Informist shows.

A total of INR 65 billion was raised through CDs Tuesday, compared to none issued the previous day. Union Bank of India was the largest CD issuer Tuesday. The bank raised INR 35 billion through CD maturing in six months at 6.22%. The state-owned bank was followed by Axis Bank which raised INR 30 billion through a three-month paper at 5.97%. Of the INR 30.50 billion CDs set to mature this week, INR 2.50 billion worth of CDs issued by Axis Bank matured Tuesday.

"Not many banks have tapped the market as there is enough liquidity in banking system and there is no urgent requirement of funds as no major outflows were scheduled for today (Tuesday) and tomorrow (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 1.88 trillion Monday, slightly higher than INR 1.81 trillion Sunday. The surplus was large enough that some traders expected an overnight variable rate reverse repo auction by the RBI of up to INR 1 trillion on Tuesday. Dealers said indicative rates on CDs remained largely unchanged. Indicative rates on three-month CDs were 6.00-6.08% compared with 5.99-6.07% Monday. Yields on six-month and one-year CDs also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.

Total issuances of commercial papers rose to INR 139.00 billion on Tuesday, significantly higher from INR 18.75 billion on Monday. Small Industries Development Bank of India was the largest CP issuer. It raised INR 60 billion through a three-month paper at 6.00%. The other major CP issuer was Reliance Retail Ventures Ltd., which raised INR 55 billion through a paper maturing in three months at 6.04%. Tata Power Co. Ltd. raised INR 5.00 billion through a three-month paper at 6.09%. Most of the non-banking financial companies tapped the market to roll over upcoming maturities, dealers said. Other CP issuers included Godrej Agrovet Ltd., Axis Securities Ltd., Godrej Properties Ltd., and Kotak Securities Ltd. CPs worth INR 19.75 billion issued by Reliance Retail Ventures are set to mature on Wednesday and Friday.

"A mix of rollover demand and portfolio requirements is driving companies to raise funds as rates are stable and lower these days because mutual funds and other investors are showing good interest as they have good cash in hands and issuers are taking advantage of this," a dealer at a brokerage firm said. Dealers said fundraising through CPs rose, but rates remained steady as investor demand easily met the requirements of borrowers. 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 6.63-6.73%, also broadly unchanged from Monday.

--Primary market

* SIDBI, Reliance Retail Ventures, Tata Power, Godrej Agrovet, Godrej Properties, Aditya Birla Capital, Axis Securities, Angel One, IGH Holding, Federal Bank Financial Services, Kotak Securities, ICICI Securities raised funds through CPs

* Axis Bank and Union Bank of India raised funds through CDs

--Secondary market

* IndusInd Bank's CD maturing on Wednesday was traded thrice at a weighted average yield of 5.3495%

* National Bank for Agriculture and Rural Development's CP maturing Wednesday was traded six times at a weighted average yield of 5.2740%

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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