More Stories

Informist, Friday, Apr. 10, 2026

By Vaishali Tyagi

MUMBAI – Rates on certificates of deposits and commercial papers rose slightly Friday, after falling for two days, following the Reserve Bank of India's variable rate reverse repo auction, dealers said. "Money market rates increased as call money rates also rose after the RBI's VRRR announcement," a dealer at a state-owned bank said. 

The interbank call money rates and volumes rose after the central bank announced it would conduct a seven-day variable reverse rate repo auction for INR 2 trillion at 1400-1430 IST. The auction was fully subscribed as the RBI received INR 2.09 trillion bids and accepted INR 2.00 trillion at 5.24%. However, call money rates did not sustain at higher levels. 

The net liquidity absorbed by the RBI, an indication of liquidity surplus in the banking system, was INR 4.55 trillion Thursday, almost unchanged from INR 4.57 trillion. This level of surplus liquidity is at the highest since May 2022.

Throughout the week and even earlier in the day, rates were lower as mutual funds were buying short-term papers, deploying excessive cash available with them after redemption pressures eased and liquidity remained high, dealers said. "MFs are deploying cash in the secondary CD market, as the primary CD market is dry and they have already invested heavily in CPs," the dealer quoted above said.  

In the secondary market, rates for three-month certificates of deposit fell to 6.18-6.22% Friday from 6.15-6.20% Thursday, while those on six-month CDs rose to 6.90-7.00% from 6.70-6.75% in the previous session. Rates on one-year CD were in the range of 6.95-7.70%, up from 6.88-6.95%, dealers said.

"The primary market didn't see any major activity," a dealer at a brokerage firm said. "Issuers who want to raise funds are waiting for the rates to cool down, but I think rates will stay here for some time." 

In the primary market of CDs, no CD was issued in the primary market Friday for the second consecutive day, according to data available on the Clearing Corp. of India F-TRAC platform as major lenders remained on the sidelines, citing typically low credit offtake in April, dealers said. With credit growth expected to be subdued this month, banks are unlikely to issue certificates of deposit unless required, they said. 

Primary issuances in the commercial paper market remained higher due to increased borrowing from large companies and non-banking financial companies as they flocked to the market to fulfil their rollover requirements due this week, dealers said. Primary borrowing through commercial papers on Thursday totalled INR 124.87 billion, lower than 143.40 billion Thursday. National Bank for Agriculture and Rural Development raised INR 28 billion through two CPs of different maturities. ICICI Securities raised INR 14 billion through CP maturing on Jul. 10. Other issuers were Navi Finserv, Julius Baer, Aditya Birla Capital, and Tata Housing Development Co. 

Trading volume in the secondary market of certificates of deposit was INR 142.95 billion Friday, marginally up from INR 140.73 billion Thursday. The traded volume of commercial papers fell more than half to INR 18.50 billion from INR 45.20 billion Thursday. 

--Primary market

* No funds were raised via CD 

* NABARD, ICICI Securities, CEAT, Navi Finserv, Julius Baer, Aditya Birla Capital, and Tata Housing Development Co. raised funds via CPs

--Secondary market

* Canara Bank's CD maturing on Apr. 29 was traded once at a weighted average yield of 5.4694%

* Bajaj Finance's CP maturing on Apr. 30 was traded once at a weighted average yield of 6.3007%

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.