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Informist, Friday, Dec. 19, 2025

By Vaishali Tyagi

MUMBAI – Fundraising through certificates of deposit and commercial papers fell Friday as requirement-based deals and lack of major need for funds kept borrowers on the sidelines. Mutual funds, which are 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 24.5 billion on Friday from INR 67.50 billion on Thursday. Bajaj Finance raised INR 5 billion at 6.51% through three-month CP. Cholamandalam Finance and Investment and Birla Group Holding also raised INR 5 billion each through three-month papers. Other issuers included Kotak Securities, Axis Securities, SBI Capital Securities, and IGH Holdings.

Only Punjab National Bank raised funds through certificates of deposit. The state-owned bank raised INR 2 billion through CD maturing in mid-February. Most other banks stayed on the sidelines as they had already met their roll-over requirement.

Dealers said activity in the secondary market of CDs was low due to a liquidity crunch. Rates have been unchanged for last two days. 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.

Dealers said many non-banking finance companies tapped the market to meet their rollover requirements. Indicative rates on CP remained unchanged as demand from issuers was met easily by investors. Rates on three-month CP issued by manufacturing companies were 6.02-6.21%. Rates on CP of similar maturity issued by non-bank lenders were 6.50-6.60%. 

--Primary market

* Kotak Securities, Cholamandalam Investment and Finance, Tata Capital, Bajaj Finance, Small Industries Development Bank of India raised funds through CPs

* Punjab National Bank raised funds through CDs

--Secondary market

* HDFC Bank's CD maturing Monday was traded seven times at a weighted average yield of 5.2561%

* Tata Power Co.'s CP maturing Monday was traded once at a weighted average yield of 5.3557%

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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