More Stories

Informist, Friday, Dec. 12, 2025

By Vaishali Tyagi

NEW DELHI – Fundraising via certificates of deposit and commercial papers was down on Friday, with borrowers involved in requirement-based deals and lack of any major need for funds keeping borrowers on the sidelines. Mutual funds, key investors in short-term debt, traded actively in the secondary market, both buying and selling papers, dealers said.

Total issuances of commercial papers declined to INR 13 billion on Friday sharply lower from INR 65.25 billion on Thursday. Angle One was the largest issuer. It raised INR 7.5 billion through a three-month CP at 7.59%. Another big issuer was Axis Securities, which issued CPs maturing in three months and borrowed INR 2.5 billion at 6.62%. Other issuers included Kotak Securities, Kotak Mahindra Prime and Aditya Birla Money.

"Most traders were largely present to meet their immediate funding needs and aren't taking aggressive positions to book profits," a dealer at a brokerage firm said. Dealers added that short-term rates are currently stable and even if rates are moving they are in range. Rates on three-month paper issued by manufacturing companies remained unchanged at 6.00-6.20% Thursday. Rates on paper of similar maturity issued by non-banking finance companies were at 6.52-6.62%, broadly unchanged from the previous session.

On certificates of deposit side, most banks stayed on the sidelines Friday due to comfortable liquidity in the banking system. Only two banks raised funds through CDs worth INR 25 billion, though significantly lower than INR 115 billion on Thursday. State-owned Bank of Baroda was the largest issuer, raising INR 14 billion through a three-month paper at 6.05%. HDFC Bank borrowed INR 11 billion through three-month CD at 6.05%. Indicative CD rates were steady because mutual funds met demand. Indicative rates on three-month CDs were in the range of 5.96-6.01%, compared with 5.95-6.00% Thursday. Rates on six-month and one-year CDs were steady at 6.26-6.32% and 6.43–6.50%, respectively.

The central bank's net absorption from the banking system--a proxy for the liquidity surplus--was INR 1.84 trillion Thursday, higher than INR 1.66 trillion Wednesday. 

--Primary market

* Kotak Securities, Aditya Birla Money, Axis Securities, Angel One and Kotak Mahindra Prime raised funds through CP

* Bank of Baroda, HDFC Bank raised funds through CD

--Secondary market

* Punjab and Sind Bank's CD maturing Monday was traded thrice at a weighted average yield of 5.1974%

* HDFC Securities CP maturing Tuesday was traded once at a weighted average yield of 5.9140%

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 Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.