More Stories

Informist, Wednesday, Jan. 7, 2026

By J. Navya Sruthi

MUMBAI – The State Bank of India raised INR 40 billion through certificate of deposits maturing on Mar. 27 at 6.0% Wednesday, after Bank of Baroda's INR 30 billion deal at 6.78% for one-year CDs on Tuesday. On Wednesday, Small Industries and Development Bank of India also raised INR 45 billion through one-year CDs at 6.95%. "After SIDBI's deal, rates on one-year papers shot up to 6.95%," a dealer at a brokerage said. Rates on one-year CDs rose to 6.90-6.95% from 6.75-6.78% Tuesday. 

The three-month CD rate rose to 6.50% on Wednesday from 6.36% on Tuesday due to higher supply in the segment. Rates on the six-month CD were also higher at 6.70-6.75% Wednesday, from 6.35-6.40% Tuesday. Rates on three-month CPs issued by manufacturing rose to 6.10-6.14% Wednesday, from 6.05-6.07% Tuesday. Similarly, rates on three-month CPs by non-banking finance companies rose to 6.90-6.95% Wednesday from 6.76% Tuesday. 

"There are only a few lenders in the market. Mutual funds were seen selling and are sitting on cash," a dealer at a private bank said. 

Trading activity was concentrated primarily in Jan–Mar maturities, dealers said. Yields on CDs maturing in March rose to 5.90-5.95% due to significant demand for Jan-Mar papers amid year-end requirements. "Investors are not very sure about papers maturing in April, or later, as there is the Budget and another MPC (monetary policy committee meeting). So, they (investors) are not taking that risk currently," a dealer at a state-owned bank said. 

The secondary market volume in the CD market was INR 99.00 billion Wednesday, similar to INR 97.65 billion Tuesday. The secondary volume in the CP market was INR 24.05 billion, also similar to INR 25.95 billion. Market participants said that, due to tight liquidity in the banking system, there were only a few buyers. Although the net liquidity absorbed from the banking system by the Reserve Bank of India – a proxy for the liquidity surplus – was INR 801.34 billion Tuesday, higher than INR 648.12 billion Monday, dealers and fund managers said the liquidity remained tight as it is below INR 1 trillion.  

Following were the volumes, in INR billion, in the secondary market for short-term debt at 1731 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Saji George Titus

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. 2026. All rights reserved.