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Informist, Wednesday, Dec. 3, 2025

By Vaishali Tyagi

NEW DELHI – Primary issuances in the ceritificate of deposits market surged Tuesday due to increased borrowing from two banks and one financial institute as they flocked to the market to fulfil their rollover requirements for December, dealers said. Primary borrowing through CDs on Wednesday crossed over INR 100 billion and totalled to INR 116.00 billion, higher than INR 38 billion Tuesday.

Bank of Baroda was the largest CD issuer. The bank raised INR 50 billion through CD maturing in three months at 6.01%. Another state-owned bank, Bank of India raised INR 46 billlion through a three-month maturity CD at 6.05%. Small Industries Development Bank of India borrowed INR 20 billion through one-year maturty CD at 6.55%.  

SIDBI has bonds worth INR 41 billion maturing this Friday, while Bank of India has a maturity of INR 10 billion the same day. Meanwhile, Bank of Baroda needs to meet a maturity of funds worth INR 17 billion by next week, according to data available on Clearing Corp. of India Ltd.

Dealers said that secondary market activity in CDs nearly doubled Wednesday, with rates moving 1-2 basis points higher due to selling. Indicative rates on three-month CDs were 5.96-6.04%, from 5.95-6.02% on Tuesday. Rates on the six-month and the one-year CDs were steady at 6.22–6.25% and 6.41–6.46%, respectively. 

Short-term debt market remained active Wednesday as investors and traders sold bonds, dealers said. After Friday's GDP figures, dealers unwounded their positions Wednesday due to diminshed hopes of a rate cut. India's GDP growth of 8.2% for the September quarter, data for which was released Friday, was 100 basis points higher than the Informist poll estimate, reducing the hope for policy easing.

"Issuances met banks' rollover requirements and activity has picked up as traders are actively trading amid hopes of rate cuts," a dealer at a abrokerage firm said. "Traders who bought earlier, are now unwinding their positions."

Meanwhile, there was no fundraising through commerical paper Wednesday against INR 29.75 billion Tuesday. Most companies stayed on the sidelines Wednesday due to no immediate funding requirement, dealers said. Indicative rates on CPs remained unchanged from Tuesday as demand from issuers was easily met by investors.

Rates on three-month papers issued by manufacturing companies remained broadly unchanged Wednesday from Tuesday at 6.02-6.11%. Rates on papers of similar maturity issued by non-banking finance companies were 6.65-6.75%, also broadly unchanged from Tuesday. Most issuers stayed on sidelines as ahead of the RBI's Monetary Policy Committee meeting decision on Friday. The central bank will hold its bi-monthly policy meeting Wed-Thu.

--Primary market

* No CP was issued to raise funds through CPs

* Bank of Baroda, Bank of India, SIDBI raised funds through CDs

--Secondary market

* HDFC Bank's CD maturing on Thursday was traded eighteen times at a weighted average yield of 5.2963%

* Reliance Retail Venture's CP maturing Thursday was traded seven times at a weighted average yield of 5.3311%

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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