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Informist, Wednesday, Dec. 10, 2025

 

By Vaishali Tyagi

 

NEW DELHI – Issuances of certificates of deposit and commercial paper Wednesday rose from the previous day but remained subdued overall as borrowers tapped the short-term debt only to meet their rollover requirements, dealers said. Some participants abstained from tapping the market as rates remained on the higher side, they said.

 

Dealers said some mutual funds, which are major investors in short-term debt, were active on both the buying and selling fronts in the secondary market. "Mutual funds were there but most were switching by selling some CD and CP to lock in other high-yielding papers," said a dealer at a broking firm. "Today (Wednesday), most trades were need-based to meet their portfolio requirements."

 

Like on Tuesday, some issuances were scrapped following disagreements on rates. These included issuances from big corporations and non-banking finance companies, dealers said.

 

Three banks together raised INR 35 billion via CD, up from CD issuances of just INR 6.0 billion Tuesday. Bank of Baroda was the largest issuer, borrowing INR 25 billion through two CD. It raised INR 15 billion through a three-month CD at 6.03% and INR 10 billion through CD maturing in six months at 6.35%.

 

Another state-owned lender, UCO Bank, borrowed INR 5 billion through paper maturing in one month. Karur Vysya Bank also tapped the market to raise INR 5 billion through three-month paper at 6.18%. Indicative rates on three-month CD were in the range of 5.96-6.01%, against 5.95-6.00% Tuesday. Rates on six-month and one-year CD were steady at 6.26-6.32% and 6.43–6.50%, respectively.

 

Fundraising through CP rose to INR 40.00 billion from INR 37.95 billion Tuesday but this, too, remained on the lower side. Four companies tapped the market, with Bajaj Finance Securities being the largest issuer, raising INR 34 billion through paper maturing in three months at 6.63%. Bajaj Finance raised INR 3 billion through threee-month paper at 6.38%. Other issuers included Aditya Birla Money and ICICI Securities.

 

Rates on three-month paper issued by manufacturing companies remained unchanged at 6.00-6.20% Wednesday. Rates on paper of similar maturity issued by non-banking finance companies were at 6.53-6.63%, broadly unchanged from Tuesday.

 

--Primary market

* Bajaj Finance Securities, Bajaj Finance, Aditya Birla Money, ICICI Securities, raised funds through CP

* Bank of Baroda, UCO Bank, Karur Vysya Bank raised funds through CD

 

--Secondary market

* Punjab National Bank's CD maturing Thursday was traded 11 times at a weighted average yield of 5.1892%

* Reliance Retail Ventures CP maturing Thursday was traded five times at a weighted average yield of 5.1889%

 

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:

 

Certificates of deposit		Commercial paper
Wednesday	Tuesday	Wednesday	Tuesday
83.60	75.55	49.35	72.65

 

End

 

Edited by Rajeev Pai

 

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