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Informist, Wednesday, Feb. 11, 2026

By Vaishali Tyagi

NEW DELHI – Rates on certificates of deposit were down slightly Wednesday owing to firm demand and comfortable liquidity in the banking system, dealers said. Surplus funds with mutual funds, which are major investors in short-term debt paper, kept the market active, traders said. "Good liquidity in the banking system boosted investors' sentiments, which pulled rates down," a dealer at a broking firm said.

Rates on one-year CD were 6.90-6.93%, down from 6.92-6.95% Tuesday owing to higher demand from investors, dealers said. Rates on three-month CD fell to 7.04-7.05% from 7.09% Tuesday. Rates on six-month CD fell to 7.07-7.12% from 7.15-7.20% the previous day.

According to the latest data, the net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--rose to INR 3.37 trillion Tuesday from INR 3.11 trillion Monday. Dealers said liquidity rose on account of redemption of state development bonds.

Total CD issuances in the primary market fell to INR 32 billion from INR 91.75 billion Tuesday. Canara Bank raised INR 22 billion through two CD of one-year tenure. The bank raised INR 12 billion at 7.91% and INR 10 billion at 7.92%. Kotak Mahindra Bank raised INR 10 billion at 7.90% via a one-year CD.

Rates on commercial paper also fell owing to strong investor demand. Rates on three-month CP issued by non-banking finance companies fell to 7.55-7.60% from 7.60-7.65% Tuesday. Rates on similar-maturity CP issued by manufacturing companies were broadly unchanged at 7.15-7.20%. In the CP market, total issuances rose to INR 105 billion from INR 17.50 billion, dealers said. National Bank for Agriculture and Rural Development raised INR 32 billion via three-month CP at 7.09%. ICICI Securities raised INR 2.5 billion at 7.64% through a CP maturing in three months. Bajaj Securities borrowed INR 10 billion at 7.65% through the issuance of three-month CP. Most issuances were in the three-month-maturity segment.

The trading volume in CD in the secondary market Wednesday was INR 69.25 billion, up from INR 48.05 billion Tuesday. The trading volume in the CP market was INR 55.35 billion, also up from INR 32.35 billion Tuesday.

--Primary market

* Kotak Mahindra Bank and Canara Bank raised funds through CD

* NABARD, Kotak Securities, ICICI Securities, Poonawala Fincorp, Bajaj Securities, HDFC Securities, Birla Group, Motilal Oswal Financial Services, Cholamandalam Investment and Finance Co., and Export-Import Bank raised funds through CP

--Secondary market

* Small Industries Development Bank of India's CP maturing Thursday was traded seven times at a weighted average yield of 4.6884%

* HDFC Bank's CD maturing Thursday was traded ten times at a weighted average yield of 4.6328%

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 Rajeev Pai

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