More Stories

Informist, Friday, Feb. 20, 2026

By J. Navya Sruthi

MUMBAI – Rates on certificates of deposit and commercial papers rose slightly from the previous day due to muted participation, traders and dealers said. Most dealers expect rates to rise further as liquidity in the banking system shrinks amid outflows for goods and services tax payments. 

In the secondary market, indicative rates on one-year CDs were up at 6.95-7.02% from 6.90-6.92% Wednesday. Rates on three-month and six-month CDs rose around five basis points from the previous day to 7.05-7.10% and 7.00-7.05%, respectively, dealers said. Indicative rates on CPs issued by non-banking finance companies were up 5 bps at 7.50-7.55% and those by manufacturing companies were also up 5 bps at 7.25-7.30%, dealers said.

"Currently there is GST (payments) stress and so liquidity outflows because of which rates are higher," a dealer at a state-owned bank said. Dealers said outflows for GST payments have started Friday and INR 1.5 trillion to INR 1.8 trillion worth outflows are likely for GST payments.

According to the latest data, the net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--was at INR 2.52 trillion Wednesday, slightly down from INR 2.62 trillion Tuesday.

The trading volume of CDs in the secondary market Friday was INR 107.10 billion, significantly down from INR 153.35 billion Wednesday. The trading volume in the CP market was also down at INR 44.60 billion from INR 53.25 billion Wednesday.

In the primary market of CDs, Indian Bank raised INR 36 billion Friday through two CDs, one maturing in December and another in January 2027 at 6.95% and 6.92%, respectively. On Monday, the bank had issued a CD maturing in December at 6.88%, which was seven basis points lower than the CD issued Friday by the bank at 6.95%.    

Bank of Baroda was also seen issuing a CD maturing in December in the primary market at 6.94%, dealers said. According to them, the bank was planning to raise INR 10 billion to INR 15 billion, however, the bank did not confirm the amount. 

--Primary Market

* Indian Bank raised raised funds through CDs.

--Secondary market

* Bank of baroda's CD maturing Monday was traded six times at a weighted average yield of 5.0210%

* Can Fin Homes' CP maturing Monday was traded twice at a weighted average yield of 5.1000%

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

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

Edited by Akul Nishant Akhoury

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.