More Stories

Informist, Tuesday, Apr. 21, 2026

 

By Nandini Sinha

MUMBAI – Rates on certificates of deposit and commercial papers ended broadly flat Tuesday amid sufficient liquidity in the banking system despite outflows for goods and services tax payments, dealers said. Mutual funds were the most active participants in the secondary market, buying and selling short-term debt instruments.

 

In the secondary market, rates on three-month CDs were steady at 6.10-6.15%, while those on six-month CDs were at 6.40-6.60%. Rates on one-year CDs were at 6.80-7.15% Tuesday, dealers said. Rates on the one-year CD were slightly higher due to uncertainty over the war in West Asia. Rates on three-month commercial papers were steady at 6.40-6.45% Tuesday, while those on six-month CPs were 6.65-6.70%.

"Even if liquidity levels in the banking system fall due to outflows (for payment of goods and services tax), don't expect the rates (on CD and CP) to harden," a dealer at a private sector bank said. "The reversal of the VRRR (variable rate reverse repo) is on Friday. It will bring back the liquidity (levels up)."

 

Any further rollover of the VRRR auction will depend on liquidity levels after GST outflows are processed, dealers said. The Reserve Bank of India may conduct another VRRR auction depending on the liquidity levels, but for a lesser amount of around INR 1.5 trillion, the dealer said. The RBI held a seven-day VRRR auction for INR 2.00 trillion Friday.

 

Tuesday, the volume in the secondary market of CDs was INR 100.40 billion, sharply up from INR 59.75 billion Monday. The volume of CPs fell to INR 26.25 billion Tuesday from INR 42.85 billion Monday. 

 

In the primary market, NTPC raised INR 26.50 billion through commercial paper maturing on Sept. 9, according to data on the Clearing Corp. of India. Union Bank of India raised INR 22 billion through a three-month CD at 6.11%, a dealer at the bank said. 

--Primary market
* IDBI Bank and Union Bank of India raised funds via CDs

* Hindustan Petroleum Corp., APL Apollo Tubes, and NTPC raised funds via CPs

 

--Secondary market

* Small Industries Development Bank of India's CD maturing on May 5 was traded once at a weighted average yield of 5.6489%

* Export-Import Bank of India's CP maturing on Apr. 24 was traded once at a weighted average yield of 5.4044%

 

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:

 

Certificates of deposit		Commercial paper
Tuesday	Monday	Tuesday	Monday
100.40	59.75	26.25	42.85

 

End

 

Edited by Saji George Titus

 

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.