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Informist, Monday, Feb. 16, 2026

 

By J. Navya Sruthi

 

MUMBAI – Rates on certificates of deposit fell in the primary market Monday due to a comfortable liquidity surplus in the banking system, dealers said. Firm demand from mutual funds also weighed on the rates in the primary market, dealers said.

 

Indian Bank raised INR 15 billion through CD maturing in December at 6.88% and Bank of India raised INR 5 billion through CD with the same maturity at 6.92%. Details regarding other CD and commercial paper issuances in the primary market were not available at the time of writing the report.

 

"After SIDBI, PFC, and NABARD, rates in primary market fell as we can see firm demand from mutual funds," a dealer at a state-owned bank said. Systemic liquidity stayed above the INR 3-trillion level over the weekend despite outflows for excise duty payment last week, dealers said.

 

According to latest data, the net liquidity absorbed from the banking system by the Reserve Bank of India--a proxy for the liquidity surplus--fell to INR 3.18 trillion on Sunday, from INR 3.19 trillion on Saturday and INR 3.24 trillion on Friday.

In the secondary market, indicative rates on CDs rose slightly due to thin trade. Indicative rates on three-month CDs were largely steady from the previous day at 6.9%. Rates on six-month CDs were slightly up at 7.02-7.05%, from 6.98-7.00% Friday. Indicative rates on one-year CD were 6.82-6.85%, as against 6.85-6.88% Friday. Similarly, rates on commercial papers were up due to higher supply, experts said.

 

--Secondary market

* Punjab National Bank's CD maturing Tuesday was traded once at a weighted average yield of 4.9647%

* Kotak Securities' CP maturing Tuesday was traded twice at a weighted average yield of 4.9647%

 

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
Monday	Friday	Monday	Friday
127.45	76.55	48.90	18.65

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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