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Informist, Wednesday, Apr. 15, 2026

By Nandini Sinha

MUMBAI – Rates on three-month and one-year certificates of deposit fell further Wednesday due to ample liquidity in the banking system and with market participants preferring Treasury bills over CD and CP, dealers said.

The net liquidity absorbed by the Reserve Bank of India, a proxy for the liquidity surplus in the banking system, was INR 5.13 trillion Tuesday, down from INR 5.24 trillion Monday. The Reserve Bank of India Wednesday set the cut-off yield on the 91-day T-bill at 5.2097%, on the 182-day T-bill at 5.4779%, and on the 364-day T-bill at 5.5923%.

Flush with liquidity, mutual funds lent mostly in CD. Mutual funds booked profits as the price of the 10-year benchmark 6.48%, 2035 bond rose nearly 50 paise Wednesday to INR 97.3400, dealer said. "The 10-year (government bond) trade panned out well. They made good money," a dealer from a private sector bank said about mutual funds.

In the secondary market, rates for three-month CD were at 6.10-6.15% Wednesday, according to a dealer at a state-owned bank. Rates on six-month CD were flat at 6.45-6.50%, while those on one-year CD were in the range of 6.90-6.95% from 6.95-7.00% Monday, dealers said.

Only banks issued CD in the primary market Wednesday. Bank of India raised INR 40 billion through CD maturing on Jun. 25 at 5.90%, while HDFC Bank Ltd. raised INR 5 billion through CD maturing on Jul. 1 at 6.12%. Indian Bank raised INR 10 billion through CD maturing on Jul. 16 at 6.08%. In the commercial paper market, Astec Lifesciences Ltd. raised INR 250 million through paper maturing Jun. 3 at 7.0002%. 

Trading volume in the secondary market of CD was INR 122.35 billion Wednesday, sharply up from INR 68 billion Monday. The traded volume of CP rose to INR 35.90 billion from INR 28.75 billion Monday.

--Primary market

* Indian Bank, HDFC Bank, and Bank of India raised funds via CD

* Astec Lifesciences Ltd., Nxtra Data Ltd. raised funds via CP

--Secondary market

* Indian Bank's CD maturing on Apr. 30 was traded four times at a weighted average yield of 5.5143%

* Godrej Industries Ltd.'s CP maturing on Apr. 16 was traded once at a weighted average yield of 5.1472%

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

With inputs from Meera Nair

Edited by Akul Nishant Akhoury

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