More Stories

Informist, Monday, Dec. 29, 2025

By J. Navya Sruthi and Vaishali Tyagi

MUMBAI – Trading volume in the secondary short-term debt market rose slightly Monday on demand for funds amid tight liquidity in the banking system, while rates were largely steady compared to the previous trading day due to lack of fresh cues, dealers said. The overall activity in the primary market also rose, as mutual funds were seen on the buying side, dealers said. Overall, trading volume remained lower.

Dealers said that while there was quarter-end redemption pressure for mutual funds, they were seen buying simultaneously. In the secondary market, commercial paper trading volume rose to INR 8.15 billion Monday from INR 6.27 billion Friday. In the primary market, fundraising through CPs was INR 26 billion, against nil Friday. Export-Import Bank of India raised INR 15 billion at 6.15% via one-month paper, while Reliance Jio Infocomm raised INR 11 billion by issuing CP maturing in three months at 6.19%

Volume in the secondary market for certificates of deposits was also higher than the previous trading day, but rates remained unchanged. The volume of CD transactions rose to INR 40.25 billion from INR 38.05 billion Friday. 

Similarly, in the primary market, fundraising through CDs was INR 46.50 billion against nil Friday. "Banks are raising funds through CDs as there is more demand for loans as liquidity is in deficit and these papers are being bought by mutual funds," a dealer at a state-owned said.  HDFC Bank issued three CDs of different maturities and raised total amount aggregating to INR 41 billion. Punjab and Sind Bank borrowed INR 5.50 billion at 6.22% via three-month CD. 

Indicative rates on three-month CDs were 6.03-6.07% Monday, unchanged from Friday. Rates on six-month and one-year CDs were 6.38-6.40% and 6.62%, respectively. Similarly, rates on three-month papers issued by manufacturing companies were 6.10-6.15% Monday, unchanged from Friday, dealers said. 

Liquidity in the banking system has remained in deficit since Dec. 16. The RBI's net injection into the banking system – a proxy for the liquidity deficit – was INR 623 billion on Sunday, similar to that on Saturday and Friday.

--Primary market

* Export-Import Bank of India, Reliance Jio Infocomm raised funds through CPs

* HDFC Bank, Punjab and Sind Bank raised funds through CDs

--Secondary market

* Export-Import Bank of India CD maturing Tuesday was traded four times at a weighted average yield of 5.4393%

* Bajaj Finance's CP maturing Jan. 23 was traded once at a weighted average yield of 6.3899%

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 Tanima Banerjee

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.