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Informist, Wednesday, May 27, 2026

 

By Meera Nair

 

MUMBAI – Rates in the certificates of deposit market remained broadly unchanged Wednesday due to low issuances by banks amid muted participation from mutual funds, major investors in the short-term debt market, dealers said. Market participants engaged only in need-based issuances to roll over their upcoming maturities and meet month-end needs, dealers said.  

 

"There was low activity as it holiday tomorrow (Thursday) which is why there was low participation, particularly from mutual funds, which typically account for over 80% of total activity in short-term debt market," a dealer at a brokerage said. Financial markets will remain closed on Thursday for Id-ul-Zuha.

 

As of 1822 IST, issuances of certificates of deposit Wednesday totalled INR 15.00 billion, sharply lower than INR 52.50 billion on Tuesday. AU Small Finance Bank, Equitas Small Finance Bank, and DBS Bank were the only issuers of CDs. Each of these banks raised INR 5 billion through three-month CDs. 

 

Yields on AAA-rated three-month CD was broadly unchanged Wednesday at 7.55-7.62% from 7.62-7.67% on Tuesday, while that on six-month, and one-year CDs were unchanged at 7.80-7.90%, and 7.85-7.95%, respectively. CDs maturing in one-year were the most actively traded in the secondary market. 

 

Yields on AAA-rated three-month, six-month, and one-year CPs issued by non-banking finance companies were unchanged at 8.00-8.05%, 8.15-8.20%, and 8.20-8.25?ross segments, respectively. "The June segment was the most actively traded in the secondary market due to better liquidity in that tenor," a dealer at a brokerage firm said. 

 

As of 1905 IST, CPs worth INR 110.15 billion were issued on Wednesday, sharply higher than INR 53.45 billion on Tuesday, according to CCIL data. Kotak Securities, Export-Import Bank of India, Larsen & Toubro, and Titan Co. were among the companies that issued CPs on Wednesday. 

 

In the secondary market, certificates of deposit worth INR 125.00 billion were traded as of 1902 IST on Wednesday, sharply higher than INR 68.65 billion on Tuesday, according to data from the Clearing Corp of India Ltd. Commercial papers worth INR 40.00 billion were traded on Wednesday, down from INR 55.40 billion on Tuesday. 

 

--Primary market
* AU Small Finance Bank Ltd., DBS Bank, and Equitas Small Finance Bank Ltd. were the only issuers that raised funds via CDs 

* Kotak Securities, Export-Import Bank of India, Larsen & Toubro, and Titan Co., were among those that raised funds via CPs

 

--Secondary market

* Canara Bank's CD maturing Friday was traded 10 times at a weighted average yield of 5.32%
* Tata Steel Ltd.'s CP maturing Friday was traded three times at a weighted average yield of 5.28%

 

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed on CCIL's F-TRAC platform:

 

Certificates of deposit		Commercial paper
Wednesday	Tuesday	Wednesday	Tuesday
125.00	68.65	40.00	55.40

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

With inputs from Vaishali Tyagi

Edited by Deepshikha Bhardwaj

 

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