More Stories

Informist, Thursday, Aug. 6, 2026

 

By Meera Nair

 

MUMBAI – Rates on certificates of deposit and commercial papers were largely unchanged across tenors on Thursday as market participants turned cautious after the heavy post-policy trading activity seen on Wednesday, while ample banking system liquidity continued to support sentiment, dealers said.

 

Three-month certificate of deposit yields were quoted at 6.60-6.65%, unchanged from Wednesday, while yields on six-month papers were steady at 6.75-6.80%. One-year CD yields were quoted at 7.30-7.35%.

 

Three-month and six-month AAA-rated commercial papers issued by non-banking finance companies were also steady at 6.95-7.00% and 7.20-7.25%, respectively. One-year CPs were dealt at around 7.62%. Dealers said trading activity in both markets remained concentrated in one-month and two-month papers, where issuers and investors continue to find better visibility on rates.

 

"As of now, quantum in the one-year segment is comparatively less than in the shorter tenors because participants have less clarity on the interest rate outlook in that segment. So, over the coming weeks I also expect activity in that tenor to remain limited," a dealer with a public-sector bank said.

 

Secondary market turnover in certificates of deposit rose to INR 134.95 billion from INR 98.55 billion on Wednesday, according to Clearing Corp. of India Ltd. data, indicating healthy trading interest despite muted primary issuance. Fresh CD issuances rose to INR 100.00 billion, sharply up from INR 9.80 billion Wednesday's. 

 

HDFC Bank raised INR 33.00 billion through a 91-day CD at a weighted average yield of 6.65%, while Bank of Baroda raised INR 41.00 billion through two CDs at weighted average yields of 6.55?ch. AU Small Finance Bank raised INR 3.50 billion at 7.40%, while Indian Bank raised INR 12.75 billion at 7.15%.

 

In the commercial paper market, secondary market turnover edged up to INR 35.70 billion from INR 33.25 billion on Wednesday, while fresh issuances fell to INR 75.67 billion from INR 107.41 billion as fewer borrowers tapped the market after the post-policy fundraising seen a day earlier. PNB Housing Finance, Godrej and Boyce Manufacturing Co., ICIC Home Finance Co., and Godrej Finance were among the issuers in the CP market.

 

PNB Housing Finance raised INR 9.00 billion through commercial paper maturing on Sept. 28 at a weighted average yield of 6.40%. Godrej and Boyce Manufacturing raised INR 5.00 billion through 91-day paper at a weighted average yield of 7.03%, while ICIC Home Finance raised INR 4.00 billion at 6.87%. Godrej Finance raised INR 2.00 billion at 7.22%, according to Clearing Corp. of India data. Alembic Pharmaceuticals, Motilal Oswal Financial Services, GIC Housing Finance, IGH Housing, and SBICAP Securities were among the other issuers.

 

Dealers said the RBI's liquidity operations will remain the key factor determining the near-term direction of money market rates. "If more VRRRs (variable rate reverse repo) are conducted in the coming weeks, then rates could be impacted. Otherwise, the market should remain stable at current levels," the dealer with the public-sector bank said.

 

Another dealer said trading activity was likely to remain subdued through the week following Wednesday's policy review. "Today (Thursday), dealers went into a sleeping mode after yesterday's policy meeting. I think this could continue tomorrow (Friday) as well. From Monday onwards, the market should become more active," a dealer from a brokerage said, adding that the liquidity backdrop remains favourable for the money market.

 

The net liquidity absorbed by the RBI — a proxy for surplus liquidity in the banking system — rose to INR 3.44 trillion on Wednesday from INR 3.34 trillion on Tuesday.

 

--Primary market 

*HDFC Bank, Bank of Baroda, AU Small Finance Bank, and Indian Bank issued CDs Thursday.

* PNB Housing Finance, Godrej and Boyce Manufacturing Co., ICIC Home Finance Co., and Godrej Finance were among CP issuers Thursday.

 

--Secondary market

* Union Bank of India's CD maturing Friday was traded twice at a weighted average yield of 5.26%.
* Aditya Birla Real Estate's CP maturing Friday was traded once at a weighted average yield of 5.44%.

 

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
Thursday	Wednesday	Thursday	Wednesday
134.95	98.55	35.70	33.25

 

End

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

 

Edited by Saji George Titus

 

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.