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Informist, Wednesday, Apr. 8, 2026

By Vaishali Tyagi 

MUMBAI – Rates on six-month and one-year certificates of deposit fell in the secondary market due to strong demand driven by improved investor appetite and low supply, dealers said. However, rates on three-month CD remained broadly unchanged due to less demand, they said.

Risk sentiment of investors improved after the sharp fall in crude oil prices and US Treasury yields after reports of a two-week ceasefire in the war between the US and Iran, dealers said. The Reserve Bank of India's Monetary Policy Committee's move to keep the repo rate unchanged at 5.25% was largely in-line with market expectations, dealers said.

Rates on certificates of deposit also fell in the primary market Wednesday due to comfortable liquidity surplus in the banking system as investors showed buying interest due to cash availability with them, dealers said. "There were many factors responsible for fall in rates today (Wednesday)...first, there was ceasefire news even before MPC (monetary policy committee) meeting decision, quoted rates were lower in six-month and one-year segment," a dealer at a brokerage firm said. The net liquidity absorbed by the RBI rose to the highest since Aug. 2 at INR 4.02 trillion Tuesday, compared with INR 3.95 trillion Monday, an indication of the liquidity surplus in the banking system. 

In the secondary market, rates on six-month certificates of deposit fell to 7.00% from 7.25-7.26% Tuesday, while those on one-year CDs were down at 7.10-7.12% from 7.28-7.30%. However, rates remained steady at 6.45-6.50% in the three-month segment as traders avoided placing large bets, dealers said.

The primary CD market was quiet as major banks held back, citing typically low credit demand in April, dealers said. With credit growth expected to be slow this month, banks are unlikely to issue certificates of deposit unless necessary, they said. A total of INR 10 billion worth of certificates of deposit were issued, according to data available on the Clearing Corp. of India F-TRAC platform at 1932 IST. RBL Bank raised INR 10 billion funds via two certificates of deposit. 

Rates on three-month commercial paper issued by non-banking finance companies fell to 6.90-7.10% from 7.30-7.35% Tuesday. In the CP market, total issuances in the primary market were over INR 225.53 billion, significantly up from 49 billion on Tuesday, according to data available on the Clearing Corp. of India F-TRAC platform at the same time. National Bank for Agriculture and Rural Development raised INR 50.00 billion through CP maturing on May. 7 at 6.25%. Other issuers included Reliance Retail Ventures, Bajaj Financial Securities, Kotak Securities, and ICICI Securities.

Trading volume in the secondary market of certificates of deposit was INR 112.90 billion Wednesday, down from INR 152.70 billion Tuesday. The traded volume of commercial papers fell to INR 23.90 billion from INR 18.55 billion Tuesday. 

--Primary market

* RBL Bank raised funds via CDs

* NABARD, Reliance Retail Ventures, Bajaj Financial Securities, Kotak Securities and ICICI Securities raised funds via CPs

--Secondary market

* Axis Bank's CD maturing on Apr. 20 was traded once at a weighted average yield of 5.9993%

* HDFC Securities' CP maturing on Apr. 15 was traded once at a weighted average yield of 6.0528%

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 Deepshikha Bhardwaj

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