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Informist, Friday, Apr. 24, 2026

By Nandini Sinha

MUMBAI – Rates on certificates of deposit and commercial papers rose Friday amid higher crude oil prices, which dampened investor appetite, dealers said. The rates on CDs and CPs also rose due to inflation concerns linked to uncertainty in West Asia, they said.

Dealers expect liquidity to remain at comfortable levels of around INR 2.5 trillion-INR 3 trillion next week. "Today there was a reversal of VRRR (variable rate reverse repo) and GST (goods and services tax) outflows are also over, so liquidity will be sufficient," a dealer at a public sector bank said. The reversal of the VRRR auction worth INR 2 trillion took place Friday, improving liquidity levels in the banking system. The net liquidity absorbed by the Reserve Bank of India, a proxy of surplus liquidity in the banking system, was INR 2.99 trillion Thursday, down from INR 3.30 trillion Wednesday.

In the secondary market, rates on three- and six-month CDs rose 5 basis points each to 6.35-6.40% and 6.85-6.90%, respectively. Rates on one-year CDs also rose by 5 bps to 7.05-7.15%, dealers said. Similarly, rates on three- and six-month CPs rose 5 bps each to 6.60-6.65% and 7.15-7.20%, respectively. One-year CPs were traded in the range of 7.45-7.50%.

Banks were majorly investing in papers maturing between December and March, while mutual funds sold papers across tenors, dealers said. In the secondary market, the volume of CDs fell to INR 104.15 billion Friday from INR 114.05 billion Thursday, while the volume of CPs fell to INR 36.05 billion from INR 54.64 billion. 

IDFC First Bank was the only issuer of CDs, according to data from the Clearing Corp. of India. The private-sector bank raised INR 12.25 billion through two CDs maturing in July at 6.55%. CD issuances in the primary market are expected to pick up pace in the coming two months, the dealer at the public sector bank said.
 

Those who raised money from the CP market Friday included Bharat Heavy Electricals, Titan Company, and NTPC. Bharat Heavy Electricals raised INR 6.5 billion at a rate of 6.1505%, while Titan Company raised INR 10 billion at 5.8001%. Mangalore Refinery and Petrochemicals raised INR 20 billion at 6.0500%, and NTPC raised INR 23.5 billion at 5.8200%. 


--Primary market
* IDFC FIRST Bank raised funds via CDs

* Bharat Heavy Electricals, Titan Company, Mangalore Refinery and Petrochemicals, and NTPC raised funds via CPs

--Secondary market

* IDBI Bank's CD maturing on Apr. 28 was traded once at a weighted average yield of 5.7524%

* Bajaj Finance's CP maturing on Apr. 29 was traded twice at a weighted average yield of 5.9982%

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 Saji George Titus

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