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Informist, Thursday, Jan. 29, 2026

 

By J. Navya Sruthi

 

MUMBAI – Rates on certificates of deposit and commercial papers rose by four to five basis points Thursday due to muted demand, dealers said. This is the third consecutive day that the yields in the short-term market have risen, they said. 

 

Rates on three-month CDs rose to 7.20-7.25% Thursday from 7.15-7.20% Wednesday, dealers said. Rates on six-month CDs were up at 7.28-7.32% from 7.20-7.25% the previous day. Rates on one-year CDs were also higher, at 7.15-7.20%, up from 7.10% the previous day.

 

"SIDBI (Small Industries Development Bank of India) was planning to raise today (Thursday), but it did not because of high rates... if it had then it would have raised around 7.30%," a dealer at a state-owned bank said. The Small Industries Development Bank of India Wednesday issued a one-year CD worth INR 70 billion at 7.25%, which was 5 basis points higher than the rate on the INR-75-billion one-year CD issued a week ago.

 

Dealers said there were no CD issuances in the primary market Thursday as major banks raised earlier this week, which led to higher yields. "More banks are likely to come after the budget and the MPC (monetary policy committee meeting)," the dealer said

 

Meanwhile, rates on three-month CPs issued by non-banking financial companies rose to 7.80% Thursday from 7.75%, while indicative rates on papers issued by manufacturing companies increased by four basis points from the previous day to 7.40%. Bajaj Finance and Aditya Birla Capital issued three-month CPs at 7.75?ch. 

 

A total of INR 24.25 billion was raised through CPs Thursday. Birla Group Holding, Pilani Investments, HDFC Securities, Network18, and Axis Finance were amongst the key issuers. Most CPs were issued in the three-month segment. 

 

Trading volume of CDs in the secondary market was INR 106.95 billion Thursday, lower than INR 189.60 billion Wednesday and that of CPs was INR 45.00 billion, down from INR 53.43 billion Wednesday. 

 

--Primary market

* HDFC Securities, Network18, Axis Finance, ICICI Securities, Axis Securities, Aditya Birla Money, Axis Finance, Aditya Birla Capital, Birla Group Holding, and Pilani Investments raised funds through CPs. 

 

--Secondary market

* Indian Bank's CD, maturing Friday, was traded thrice at a weighted average yield of 5.3225%

* ICICI Securities's CP, maturing Friday, was traded twice at a weighted average yield of 5.4028%

 

The 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:

 

Certificates of deposit		Commercial paper
Thursday	Wednesday	Thursday	Wednesday
106.95	189.60	45.00	53.43

 

End

 

Edited by Saji George Titus

 

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