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Informist, Friday, Feb. 27, 2026

By J. Navya Sruthi

MUMBAI – Rates on certificates of deposits and commercial papers were steady Friday due to lack of new cues and lower volume in the secondary market, dealers said.

The trading volume of CDs in the secondary market Friday was INR 108.20 billion, significantly down from INR 177.20 billion Thursday. The trading volume in the CP market was at INR 34.20 billion, also down from INR 57.20 billion Thursday.

In the secondary market, rates on three-month CDs were steady at 7.05-7.10% from the previous day, dealers said. Rates on one-year and six-month CDs were largely steady from the previous day at 6.90% and 7.00-7.05%, respectively. Indicative rates on CPs issued by non-banking finance and manufacturing companies were also steady at 7.50-7.65% and 7.25-7.30%, respectively, dealers said.  

"Usually, volume is low on Fridays and the market is yet to take cues from the GDP data," a dealer at a state-owned bank said. "We can expect yields to rally by 5 bps (fall by 5 basis points) in three-year and five-year segments after positive GDP data but rates will remain rangebound in short-term market," the dealer said. 

The Indian economy grew faster than expected in the December quarter with the new GDP series showing growth of 7.8%. Growth in the last quarter of 2025 was driven by private consumption, the services sector, and manufacturing. Economists polled by Informist had estimated the December quarter GDP growth at 7.5%. 

"Entering into March, CD supply will increase as there are maturities lined-up and given ample surplus liquidity, rates will remain rangebound," the dealer said. According to the latest data, the net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--was INR 2.11 trillion Thursday, slightly down from INR 2.25 trillion Wednesday. 

According to market sources, Canara Bank issued a CD maturing in one year at 6.85% Friday. However, there was no confirmation about the quantum.  

--Secondary market

* Bank of Baroda's CD maturing Monday was traded twice at a weighted average yield of 5.0513%

* Manappuram Finance's CP maturing Monday was traded once at a weighted average yield of 5.6967%

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

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