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Informist, Friday, Aug. 14, 2026

 

By Meera Nair

 

MUMBAI – Rates on certificates of deposit and commercial papers were range-bound across key tenors on Friday as banks continued to have surplus liquidity, aided by inflows from foreign currency non-resident (banks) deposits, while trading in CDs was largely driven by rollovers, dealers said.

 

Three-month CD yields were quoted at 6.35-6.40%, unchanged from Thursday, while six-month yields were at 6.70-6.75%. One-year CD yields were also steady at around 7.20%. Rates have remained range-bound for the third consecutive day.

 

"Activity is happening in all the major segments but rates have been consolidated here because there was a sharp fall in yields after RBI's policy meeting and currently, we are at sufficient levels," a dealer at a brokerage firm said.

 

Three-month 'AAA'-rated commercial papers issued by non-banking finance companies was quoted at 6.75-6.80%, while six-month CPs were at 7.10-7.15%, up 5 basis points from 7.05-7.10% Thursday. Rates on one-year CPs were unchanged at 7.45-7.50%.

 

Trading activity in both the CD and CP markets was concentrated mainly in the three-month segment, where banks were able to secure comparatively attractive levels, the dealer said.

 

The net liquidity absorbed by the Reserve Bank of India, a proxy for liquidity surplus, rose to INR 3.54 trillion Thursday from INR 3.43 trillion Wednesday. The central bank is conducting a large variable rate reverse repo auction, as earlier tenders worth INR 1.23 trillion mature on Friday, dealers said.

 

The liquidity surplus increased slightly as banks converted dollar-denominated inflows from foreign currency non-resident (bank) deposits into rupee liquidity, dealers said. However, regular dollar sales by the RBI in the spot market limited the rise in systemic liquidity despite robust inflows of dollar deposits, they said.

 

The secondary market turnover in CDs declined to INR 134.50 billion Friday from INR 143.40 billion Thursday, according to Clearing Corp. of India Ltd. data. Primary market CD issuances were at INR 6.50 billion, against INR 35 billion a day earlier. Karur Vysya Bank Ltd. and AU Small Finance Bank Ltd. were the only issuers. Karur Vysya Bank raised INR 2.5 billion at a weighted average yield of 6.60%, while AU Small Finance Bank raised INR 4 billion at 7.32%.

 

Secondary market turnover in CPs fell to INR 40.55 billion from INR 50.15 billion Thursday. Fresh issuances, however, rose sharply to INR 105.56 billion as of 1710 IST from INR 72.93 billion a day earlier. Bharat Petroleum Corp. Ltd., National Bank for Agriculture and Rural Development Ltd., Hindustan Petroleum Corp. Ltd., HDFC Securities Ltd., Titan Co. Ltd. and Manappuram Finance were among the issuers.

 

Bharat Petroleum Corp. raised INR 30 billion through a CP maturing Nov. 13 at a weighted average yield of 6.37%, while NABARD raised INR 14.50 billion at 6.38%. Hindustan Petroleum Corp. raised INR 9 billion through a 91-day paper at a weighted average yield of 6.44%. HDFC Securities raised INR 5.5 billion at 6.90%, while Titan Co. raised INR 10 billion through a 90-day paper at 6.50%. Manappuram Finance raised INR 3 billion through a 91-day paper at 7.23%.

 

--Primary market 

* Karuru Vysya Bank and AU Small Finance Bank Ltd., were the only CD issuers Friday.

* Bharat Petroleum Corp. Ltd., National Bank for Agriculture and Rural Development Ltd., Hindustan Petroleum Corp. Ltd., HDFC Securities, Titan Co. Ltd., Manappuram Finance, were among the CP issuers Friday.

 

--Secondary market

* Canara Bank's CD maturing Monday was traded eight times at a weighted average yield of 5.19%.
* Manappuram Finance's CP maturing Monday was traded once at a weighted average yield of 5.40%.

 

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
Friday	Thursday	Friday	Thursday
124.25	143.40	37.55	50.15

 

End

 

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

 

Edited by Avishek Dutta

 

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