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Informist, Monday, Aug. 24, 2026

 

By Meera Nair

 

MUMBAI – Certificates of deposit and commercial paper markets saw higher trading activity on Monday as mutual funds turned buyers amid comfortable liquidity conditions, dealers said. Rates on CDs were either steady or lower from Friday's levels, while CP rates were mixed, they said.

 

Three-month CD yields were at 6.50-6.55%, down 10 basis points from 6.60-6.65% on Friday, while six-month CD rates were around 6.90%, compared with 6.90-6.95% previously. One-year CD yields were at 7.40-7.45%, compared with 7.40% on Friday.

 

Three-month yields on AAA-rated non-bank financiers' CP were at 7.15-7.20%, up five basis points from 7.10-7.15% on Friday, while six-month yields were at 7.35-7.40%, down five basis points from 7.40-7.45%. One-year yields were five basis points higher at 7.70-7.75%, compared with 7.65-7.70% previously.

 

Secondary-market turnover in CDs rose to INR 147.15 billion from INR 88.05 billion on Friday, according to Clearing Corp. of India Ltd. data. CD issuances stood at INR 37.00 billion, with Canara Bank and The Karur Vysya Bank as the only issuers, both through 90-day papers. Canara Bank raised INR 32.00 billion at a weighted average yield of 6.48%, while Karur Vysya Bank raised INR 5 billion at a weighted average yield of 6.69%.

 

"Both markets were active and better as expected due to the ample liquidity and mutual funds were on the buying side," a dealer from a brokerage firm said.

 

Secondary-market turnover in CPs also rose to INR 58.40 billion from INR 29.65 billion a day earlier. However, CP issuances fell to INR 55.40 billion as of 1750 IST from INR 63.51 billion on Friday, indicating that primary-market borrowing remained active despite higher secondary-market activity.

 

Tata Steel Ltd., Sharekhan Ltd., Kotak Mahindra Investment Ltd., HSBC InvestDirect Financial Services Ltd., HDB Financial Services Ltd., Hero FinCorp Ltd., and SBICAP Securities Ltd. were among the issuers. Tata Steel raised INR 10 billion through 18-day CPs at a weighted average yield of 6.60%, while Sharekhan raised INR 5.90 billion at 7.23%. Kotak Mahindra Investment raised INR 5.50 billion at a weighted average yield of 7.00%, while HSBC InvestDirect raised INR 2.75 billion at a weighted average yield of 7.14%.

 

Net liquidity absorbed by the Reserve Bank of India—a proxy for liquidity surplus—stood at INR 3.40 trillion on Friday, compared with INR 3.50 trillion on Thursday.

 

"In the coming weeks also I expect the market to be better provided no other global tensions jerk the markets and liquidity comes down to a comfortable level," the dealer said.

 

--Primary market 

* Canara Bank, The Karur Vysya Bank Ltd., were the only CD issuances Monday. 

* Tata Steel Ltd., Sharekhan Ltd., Kotak Mahindra Investment Ltd., HSBC Investdirect Financial Services Ltd., HDB Financial Services Ltd., Hero Fincorp Ltd., SBICAP Securities Ltd. were among the CP issuers on Monday.

 

--Secondary market

* HDFC Bank Ltd.'s CD maturing Tuesday was traded 14 times at a weighted average yield of 5.12%.
* Kotak Securities Ltd.'s CP maturing Tuesday was traded four times at a weighted average yield of 5.12%.

 

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 papers
Monday	Friday	Monday	Friday
147.15	88.05	58.40	29.65

 

End

 

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

 

Edited by Deepshikha Bhardwaj

 

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