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Informist, Monday, Jul. 13, 2026

 

By Meera Nair

 

MUMBAI – Yields on certificates of deposit were largely steady across tenors Monday as comfortable liquidity conditions in the banking system reduced funding pressure on lenders, dealers said. Activity in the commercial paper market remained subdued as investors refrained from taking fresh positions amid continuing uncertainty over geopolitical developments.

 

The Reserve Bank of India's liquidity operations continued to show a surplus of over INR 1 trillion, allowing banks to meet their funding requirements without aggressively tapping the money market. Dealers said this kept certificate of deposit yields flat despite some activity in select maturities.

 

Three-month AAA-rated certificates of deposit were quoted at 6.65-6.70%, unchanged from Friday, while six-month yields edged up 5 basis points to 6.90-6.95%. One-year CD yields were steady at 7.05-7.10%, dealers said. Trading in the CD market was largely concentrated in the August-September and January-February-March maturity buckets, with limited movement in other segments.

 

"The system continues to have ample surplus liquidity. Most banks have already met their funding needs and only a few smaller lenders are borrowing to meet fortnightly reserve requirements," a dealer at a private-sector bank said.

 

In the commercial paper segment, market participants adopted a cautious stance amid geopolitical uncertainties. Dealers said investors preferred to wait for greater clarity before deploying fresh funds into CPs.

 

Three-month AAA-rated commercial papers issued by non-banking finance companies were quoted at around 7.25%, while six-month papers traded in the 7.47-7.63% range, according to data from Clearing Corp of India. No one-year CP trades were reported on the CCIL platform on Monday.

 

Secondary market turnover in certificates of deposit eased marginally to INR 70.65 billion from INR 73.65 billion on Friday, according to CCIL data. Commercial paper turnover stood at INR 23.25 billion, compared with INR 13.90 billion on Friday. Dealers, however, said overall trading interest remained weak as investors largely stayed on the sidelines.

 

On the primary side, certificate of deposit issuances increased to INR 34.25 billion from INR 23.00 billion on Friday, with HDFC Bank and Union Bank of India accessing the market. HDFC Bank raised INR 15.50 billion through 79-day CDs at a weighted-average yield of 6.70%, while Union Bank of India raised INR 18.75 billion through two issuances at weighted-average yields of 6.70% and 7.05%, respectively, according to CCIL data.

 

Commercial paper issuances declined to INR 31.95 billion from INR 47.72 billion on Friday. Main CPI issuers were NTPC, Export-Import Bank of India, Can Fin Homes, PNB Housing Finance, and National Bank for Financing Infrastructure and Development.

 

NTPC raised INR 4.75 billion through four-day commercial paper at a weighted average yield of 5.97%, while EXIM raised INR 2.50 billion at 6.27%. Can Fin Homes, PNB Housing Finance, and NaBFID each raised INR 2.00 billion at weighted-average yields of 6.25%, 6.70%, and 6.20%, respectively.

 

The RBI absorbed INR 1.15 trillion under its liquidity adjustment facility on Sunday, broadly unchanged from INR 1.14 trillion on Friday, indicating that surplus liquidity in the banking system remained intact and continued to limit upward pressure on banks' short-term funding costs.

 

--Primary market
* HDFC Bank and Union Bank of India issued CDs Monday.   

* NTPC, EXIM Bank, Can Fin Homes, PNB Housing Finance, NaBFID were among the CP issuers Monday.

 

--Secondary market

* IndusInd Bank's CD maturing on Aug. 10 was traded once at a weighted average yield of 6.38%
* PNB Housing Finance's CP maturing Thursday was traded twice at a weighted average yield of 6.70%

 

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
Monday	Friday	Monday	Friday
70.65	73.65	23.25	13.90

 

End

 

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

 

Edited by Saji George Titus

 

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