More Stories

Informist, Friday, Jul. 10, 2026

 

By Meera Nair

 

MUMBAI – Yields on certificates of deposit rose by up to 5 basis points across shorter tenors on Friday as banks rolled over maturing papers, while activity in commercial papers in the secondary market remained subdued with investors staying on the sidelines amid uncertainty about the conflict in West Asia and the transition into a new quarter, dealers said.

 

The movement in the CD market contrasted with the CP segment, where trading volumes nearly halved as market participants preferred to wait for more clarity on geopolitical developments before taking fresh positions.

 

Yields on three-month AAA-rated certificates of deposit rose to 6.65-6.70% from 6.60-6.70% on Thursday, while six-month yields climbed to 6.85-6.90% from 6.80-6.85%, dealers said. One-year CD yields, however, eased by 5 bps to 7.05-7.10%, reflecting better demand for the longer-tenure debt instrument.

 

Dealers said activity in the CD market was largely concentrated in the August-September segments, where banks were rolling over maturing certificates of deposit by issuing fresh papers. Mutual funds were largely seen selling these papers, while banks emerged as buyers in the secondary market.

 

In contrast, there were no trades in three-month and six-month AAA-rated commercial papers issued by non-banking finance companies. One-year CPs were dealt at around 7.42%.

 

The turnover in certificates of deposit rose to INR 73.65 billion as of 1729 IST from INR 62.20 billion on Thursday, according to data from the Clearing Corp of India Ltd. Commercial paper turnover, however, fell sharply to INR 13.90 billion from INR 25.85 billion Thursday.

 

Certificate of deposit issuancees was largely unchanged at INR 23.00 billion as of 1731 IST, compared with INR 23.50 billion on Thursday. Union Bank of India, Federal Bank and Ujjivan Small Finance Bank were the only issuers, according to data from CCIL. Union Bank raised INR 16.75 billion through two certificates of deposit. Federal Bank raised INR 5.00 billion through a 91-day CD at 6.85%, while Ujjivan Small Finance Bank raised INR 1.25 billion at 6.95%, according to CCIL data.

 

"I think CD issuances next week will remain modest because banks are adequately funded. However, the secondary market has been quite active this week and that activity should continue," a dealer at a brokerage firm said.

 

Commercial paper issuances, however, rose to INR 47.72 billion as of 1733 IST from INR 23.33 billion on Thursday, led by issuances from Indian Oil Corp Ltd., Grasim Industries Ltd., SRF Ltd., Titan Company Ltd., Aditya Birla Money Ltd., Tata Capital Housing Finance Ltd., and Mirae Asset Financial Services India Pvt. Ltd. Indian Oil raised INR 10.00 billion through a 60-day CP at a weighted average yield of 6.43%, while Titan Co. raised INR 8.25 billion at 6.75%. Grasim Industries raised INR 5.00 billion at 6.55%, and Aditya Birla Money raised INR 1.50 billion at 7.38%.

 

"People are not trading much in the CP market because investors are uncertain due to the West Asia conflict," the dealer said. Trading in the three-month segment of commercial papers is expected to begin next week after escalating geopolitical tensions weighed on investor sentiment during the last two sessions.

 

The Reserve Bank of India's net liquidity absorption – a proxy for surplus liquidity in the banking system — rose to INR 1.11 trillion on Thursday from INR 741.81 billion on Wednesday. Dealers attributed the increase mainly to the inflow of around INR 330 billion from government securities redemption and state bond coupon payments, which kept system liquidity comfortably in surplus.

 

--Primary market
* Union Bank of India, Federal Bank and Ujjivan Small Finance Bank were the only issuers of CD Friday.   

* Indian Oil Corp Ltd., Grasim Industries Ltd., SRF Ltd., Titan Company Ltd., Aditya Birla Money Ltd., Tata Capital Housing Finance Ltd., and Mirae Asset Financial Services India Pvt. Ltd. were among the CP issuers Friday.

 

--Secondary market

* Union Bank of India Ltd.'s CD maturing on Jul. 28 was traded once at a weighted average yield of 6.09%
* ICIC Securities Ltd.'s CP maturing Monday was traded three times at a weighted average yield of 5.30%

 

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
Friday	Thursday	Friday	Thursday
73.65	62.20	13.90	25.85

 

End

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

 

Edited by Avishek Dutta

 

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.