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Informist, Friday, Apr. 17, 2026

By Nandini Sinha
 

MUMBAI – Rates on three-month certificates of deposit were a tad down Friday on buying by mutual funds that had surplus funds, dealers said. The decline in rates is despite a reduction in the banking system's liquidity surplus and the Reserve Bank of India draining INR 2 trillion through a seven-day variable-rate reverse repo auction on Friday.

The net liquidity absorbed by the Reserve Bank of India, a proxy for surplus liquidity in the banking system, declined to INR 4.09 trillion Thursday from INR 5.21 trillion Wednesday. In the variable rate reverse repo auction Friday, banks parked INR 2 trillion at a cut-off of 5.24%.

Liquidity is expected to remain comfortable in the coming weeks, dealers said. "Advance tax outflows for the first quarter could impact liquidity in June. We expect more CD issuances then," a dealer from a private sector bank said.

In the secondary market, rates for three-month CDs were at 6.05-6.30% Friday from 6.10-6.15% Thursday, while rates on six-month CDs were at 6.40-6.70%, up from 6.30-6.40% Thursday. Rates on one-year CDs were in the range of 6.80-7.10% Friday compared with 6.90-6.95% Thursday, dealers said. The rates on three-month commercial paper were 6.15-6.40%, while those on six-month CP were between 6.50-6.80%. 

In the primary market, Indian Bank raised INR 500 million through CDs maturing on Jul. 16 at 6.08% and DBS Bank raised INR 10 billion through two CDs maturing in August at 6.55%. In the commercial paper market, Kotak Securities raised INR 11 billion through paper maturing on Apr. 24 at 5.7173%. 

The volumes in the secondary market of CDs were INR 72.25 billion Friday, sharply down from INR 119.75 billion Thursday. The volumes in CPs were almost unchanged at INR 36.10 billion compared with INR 36.55 billion Thursday.

--Primary market

* Indian Bank, DBS Bank raised funds via CDs

* Kotak Securities, Indian Oil Corp. raised funds via CPs

--Secondary market

* IDBI Bank's CD maturing on Apr. 28 was traded once at a weighted average yield of 5.6505%

* Bajaj Finance's CP maturing on Apr. 20 was traded thrice at a weighted average yield of 5.0269%

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

With inputs from Meera Nair

Edited by Saji George Titus

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