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Informist, Monday, Feb. 2, 2026

By J. Navya Sruthi

MUMBAI – Rates on certificates of deposit and commercial papers of all tenors were steady from the previous day due to lack of major cues, dealers said. The Reserve Bank of India's two 90-day variable rate repo auctions kept rates steady despite the government securities and corporate bonds market reacting to the Budget. 

On Monday, rates on three-month CDs were steady from the previous day at 7.20-7.25%, dealers said. Rates on six-month and one-year CDs were also steady at 7.20% and 7.05%, respectively. Rates on three-month CPs issued by non-banking financial companies were at 7.60%, steady from Friday and indicative rates on papers issued by manufacturing companies were unchanged at 7.30%.

The RBI infused INR 1.37 trillion of temporary liquidity through two 90-day variable rate repo auctions on Friday which also kept rates on the lower side. The RBI received bids worth INR 950.62 billion at the first 90-day variable rate repo auction where it accepted bids for INR 250.04 billion and then conducted another 90-day VRR for INR 2 trillion.

However, dealers said corporate bonds market has given away Friday's gains traking government bond market on Monday due to the government's record gross borrowing for 2026-27 (Apr-Mar). The Union Budget Sunday pegged the government's gross market borrowing at a record INR 17.20 trillion, higher than traders had expected. 

The total CD issuances in the primary market on Monday were INR 90 billion, up from INR 71.50 billion Friday. Bank of India raised INR 40 billion through CD maturing in May at a rate of 7.25%

Total CP issuances in the primary market Monday were INR 72.5 billion, up from INR 25.25 billion Friday. ICICI Securities raised INR 2 billion at 7.12% and Small Industries Development Bank of India raised INR 50 billion at 6.7%. Bajaj Housing Finance raised INR 5 billion at 7.21% through one-year CP. Tata Capital Housing Finance issued two one-year CPs and raised INR 3 billion and INR 5 billion at 7.23% and 7.26%, respectively.   

Trading volume of CDs in the secondary market was INR 129.65 billion Monday, up from INR 79.45 billion Friday. Trading volume of CPs was INR 32.15 billion, also up from INR 22.42 billion. 

--Primary market

* Bank of India and Bank of Baroda raised funds through CDs

* Bajaj Housing Finance, Small Industries Development Bank of India, ICICI Securities, Axis Securities, Tata Capital Housing Finance, Hero Fincorp, Motilal Oswal Financial Services, and Bajaj Finance raised funds through CPs

--Secondary market

* Union Bank of India's CD maturing Tuesday was traded six times at a weighted average yield of 5.0990%

* ICICI Securities' CP maturing Tuesday was traded once at a weighted average yield of 5.0012%

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:

End

Edited by Akul Nishant Akhoury

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