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Informist, Monday, Dec. 22, 2025

By Vaishali Tyagi 

MUMBAI – Issuances of certificates of deposit surged Monday, driven by big-ticket issuances, as banks flocked to the short-term debt market to roll over their maturing papers, dealers said. Primary borrowing through CDs rose to INR 69 billion Monday compared with one issuance of INR 2 billion Friday.

HDFC Bank was the largest issuer. The bank raised INR 58 billion through two CDs maturing of different maturities. The private sector bank raised INR 33 billion through the issuance of CD maturing in one-month at 6.10%, while it raised rest INR 25 billion via CD maturing in three-month at 6.07%. Other two issuers were, Punjab National Bank borrowed INR 6 billion at 6.05% through issuance of three-month CD and Canara Bank tapped the market to raise INR 5 billion at 6.44% through CD maturing in six-month.

"Banks are gradually meeting their rollover requirements," a dealer at a mid-size brokerage firm said. "As quarter-end (Oct-Dec) will approach, the rates can rise due to redemption pressure on mutual funds so they will try to meet their borrowing target before that." HDFC Bank had bonds worth INR 23 billion maturing Monday while Canara Bank has CDs worth INR 23 billion maturing this week, according to data on Clearing Corp. of India Ltd. 

Dealers said secondary market activity in CDs nearly halved on Monday due to tight liquidity in the banking system, with rates remaining broadly in a narrow range, moving 1-2 basis points higher in three-month segment. Indicative rates on three-month CDs were 6.00-6.05% Monday from Friday's 5.99-6.04%. Rates on six-month and one-year CDs were 6.35-6.44% and 6.50–6.65%, respectively. The RBI's net liquidity injected into the banking system – a proxy for the liquidity deficit – was INR 577.21 billion Sunday, similar to INR 570.18 billion Saturday and higher than INR 374.10 billion Friday.

Fundraising through commercial paper rose marginally to INR 29.25 billion against 24.5 billion on Friday. Godrej Consumer Products was the largest CP issuer, raising INR 8 billion through a three-month paper at 6.10%. Another key issuers were ICICI Securities, which borrowed INR 5 billion by issuing three-month paper at 6.75% and JIO Credit borrowed INR 5 billion at 6.50% through CP maturing in three-month. Other issuers were Redington, SBI Capital Securities, Birla Group Holding, and Kotak Securities. 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. 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 6.02-6.15%. Rates on CP of similar maturity issued by non-bank lenders were 6.50-6.60%. 

--Primary market

*  Redington, Axis Securities, SBI Capital Securities, Kotak Securities, ICICI Securities, Birla Group Holding, Jio Credit, Godrej Consumer Products, raised funds through CPs

*  HDFC Bank, Canara Bank, Punjab National Bank raised funds through CDs

--Secondary market

* Punjab and Sind Bank's CD maturing Tuesday was traded twice at a weighted average yield of 5.5854%

* L&T Metro Rail (Hyderabad)'s CP maturing Tuesday was traded twice at a weighted average yield of 5.7679%

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:

Edited by Deepshikha Bhardwaj

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