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Informist, Thursday, Apr. 30, 2026

By Nandini Sinha

MUMBAI – Trading volumes of certificates of deposit and commercial paper were low Thursday on the month end following the variable rate repo auction by the Reserve Bank of India for INR 1 trillion, dealers said.

The volume of trade in CDs in the secondary market fell sharply to INR 45.50 billion from INR 104.30 billion Wednesday. The volume of trade in CP fell to INR 33.60 billion from INR 42.85 billion the previous day. The net liquidity absorbed by the RBI, an indicator of the surplus liquidity in the banking system, was INR 2.15 trillion Wednesday, down from INR 2.58 trillion Tuesday.

One-month, two-month, and one-year instruments were traded the most, a dealer at a broking firm said. "There are no buyers for six-month instruments," the dealer said. "Banks want to buy shorter-term segments, whereas mutual funds want to sell shorter-term segments."

Rates on CDs and CP were down across most segments after the VRR auction. In the secondary market, CDs maturing in June were traded at 6.22-6.39% while rates on those maturing in September were at 6.79-6.82%, according to data from the Clearing Corp. of India. CDs maturing in March were traded at 7.15-7.21%.

CP maturing in June were dealt at 6.25% while those maturing in January were dealt at 7.80%. No CP with maturity of around six months was traded in the secondary market, according to data from Clearing Corp. of India Ltd.

Only Union Bank of India raised CDs in the primary market Thursday, according to data from CCIL. The public-sector bank raised INR 1 billion at 7.35% through a CD maturing on May 4, 2027. Bajaj Financial Securities Ltd., Tata Power Renewable Energy Ltd., The Ramco Cements Ltd., and Aditya Birla Capital Ltd. were among those who raised CP in the primary market. Bajaj Financial Securities raised INR 750 million at 6.5694%. Tata Power Renewable Energy raised INR 4 billion at 6.22%.

Any development in the situation in West Asia could weigh on the rates Monday, dealers said, referring to crude oil prices. "Three days is a long time. Anything can happen," a dealer at a public-sector bank said, referring to attempts to get the US and Iran to the negotiating table. Rates could fall if the liquidity surplus in the banking system rises Monday, the dealer at the broking firm said. "It all depends on liquidity for CDs and CPs."

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

* Bajaj Financial Securities, Tata Power Renewable Energy were among those who raised funds via CP

--Secondary market

* Axis Bank Ltd.'s CD maturing on May 15 was traded once at a weighted average yield of 6.0008%
* Bajaj Finance Ltd.'s CP maturing on May 7 was traded thrice at a weighted average yield of 6.25%

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by 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 Rajeev Pai

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