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Informist, Thursday, Apr. 23, 2026

By Nandini Sinha

MUMBAI – Rates on certificates of deposit and commercial papers rose Thursday due to selling by mutual funds as they churned their portfolios, dealers said. Trade volume for CDs and CPs was up from Wednesday mainly due to the portfolio rotation by mutual funds, dealers said.

A rise in triparty repo rate also pushed up rates, dealers said. The one-day tri-party repo ended at 5.0% Thursday, up from 4.98% Wednesday. "The impact of (rise in) TREPS (rate) was seen on CD/CP," a dealer at a private sector bank said. The net liquidity absorbed by the Reserve Bank of India, a proxy of surplus liquidity in the banking system, was INR 3.30 trillion Wednesday, up from INR 3.28 trillion Tuesday. 

The uncertainty over how long the ceasefire in the war between the US and Iran would last also pushed the rates up, a dealer from a brokerage firm said. "Today rates were up majorly because of the geopolitical tensions and liquidity crunch in the system. This might continue in the coming weeks as well", the dealer said. 

In the secondary market, rates on three-month and six-month CDs were up 10 basis points at 6.30-6.35% and 6.80-6.85%, respectively. Rates on one-year CDs were at 7.00-7.10% from 6.80-7.15% Wednesday, dealers said. Rates on three-month and six-month commercial papers were up 15 bps at 6.55-6.60% and 7.10-7.15%, respectively. One-year CPs were dealt at 7.40-7.45% Thursday, up 20 bps from 7.20-7.25% Wednesday.

The volume in the secondary market of CDs nearly doubled to INR 114.05 billion Thursday from INR 60.75 billion Wednesday. The volume of CPs nearly tripled to INR 54.64 billion from INR 19.90 billion Wednesday. 

In the primary market, Union Bank of India was the only issuer of CDs, according to data from the Clearing Corp. of India. The state-owned bank raised a total of INR 32.50 billion through two CDs at 6.1098% and 6.1901%. Tata Housing Development Co. Ltd. raised INR 1.05 billion through CP in the primary market at 6.0700%, while Bajaj Finance Ltd. raised INR 3 billion through CP at 7.20%.

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

* Tata Housing Development Co., The Ramco Cements, Bajaj Finance raised funds via CPs

--Secondary market

* Axis Bank's CD maturing on Apr. 30 was traded once at a weighted average yield of 5.5774%

* Export Import Bank of India's CP maturing on Apr. 24 was traded four times at a weighted average yield of 5.1667%

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

With inputs from Meera Nair

Edited by Deepshikha Bhardwaj

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