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Informist, Wednesday, Dec. 17, 2025

By Vaishali Tyagi

MUMBAI – Primary issuances of certificates of deposit surged Wednesday on increased borrowing as banks flocked to the market to meet fund rollover needs, dealers said. Primary borrowing through CDs crossed the INR 100 billion mark and reached INR 111.50 billion, compared with none Tuesday.

HDFC Bank was the largest issuer. The bank raised INR 60 billion through a CD maturing in three months at 6.05%. Axis Bank raised INR 30 billlion through a CD of three-month maturity at the same coupon. The other big issuer was Canara Bank, which raised INR 16 billion through two certificates of different maturities. The state-owned bank raised INR 10 billion through a CD maturing in six months at 6.44% and the rest through a CD maturing in one year at 6.60%. Other issuers included Punjab & Sind Bank and UCO Bank.

HDFC Bank has bonds worth INR 46.25 billion maturing Thursday while Canara Bank has a maturity of nearly INR 30 billion the same day, according to data on Clearing Corp. of India Ltd. "Big CD issuers raised funds to meet rollover requirements as their maturities approached," a dealer at a brokerage firm said. "Lenders raised significant funds as maturities are also big and at the same time a liquidity crunch is there." The RBI's net injection into the banking system--a proxy for the liquidity deficit--was INR 607.88 billion Tuesday, against a net absorption of INR 1.20 trillion Monday.

Dealers said secondary market activity in CDs rose Wednesday, with rates remaining unchanged from Tuesday. Indicative rates on three-month CDs were 5.99-6.04%. Rates on six-month and one-year CDs were 6.29-6.36% and 6.47–6.58%, respectively.

Fundraising through commercial paper fell to INR 41.00 billion against INR 50.50 billion Tuesday. Reliance Jio Infocomm was the largest CP issuer, raising INR 13 billion through a three-month paper at 6.09%. Another big issuer was HDFC Securities, which borrowed INR 12.50 billion by issuing three-month paper at 6.68%. Other issuers were Aditya Birla Capital, ICICI Securities, Tata Capital Housing, and Sundaram Home Finance. Most of the papers issued were of three-month maturity.

Dealers said many non-banking finance companies stayed on the sidelines Wednesday as they had no immediate need for funds. Volumes in the secondary CP market also fell more than 50% from Tuesday. Indicative rates on CP remained unchanged as the demand from issuers was met easily by investors. Rates on three-month paper issued by manufacturing companies were at 6.02-6.21%. Rates on paper of similar maturity by non-bank lenders were at 6.50-6.60%.

--Primary market

* HDFC Securities, Aditya Birla Capital, ICICI Securities, Tata Capital Housing, Sundaram Home Finance raised funds through CP

* HDFC Bank, Axis Bank, Canara Bank, Punjab & Sind Bank, UCO Bank raised funds through CD

--Secondary market

* Axis Bank's CD maturing Thursday was traded 10 times at a weighted average yield of 5.4777%

* National Bank for Agriculture and Rural Development's CP maturing Thursday was traded once at a weighted average yield of 5.5123%

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 Rajeev Pai

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