Banks were major investors for certificates of deposit on Monday as liquidity condition in the banking system is comfortable, dealers said.
Liquidity condition in the banking system is also comfortable, as there were no bids in the Repo window on Monday. Banks parked Rs 2,300 crore at Reserve Bank of India’s first Reverse Repo tender on Monday and expect banks to park another Rs 10,000-15,000 crore in the second Reverse Repo tender.
Three-month CPs were quoted at 11.00-11.50 per cent compared with 10.25-11.50 per cent on Friday, while three-month CDs were quoted at 7.70-7.80 per cent compared with 7.60-7.70 per cent.
Secondary market
Punjab National Bank’s June maturity paper was dealt at 8.60 per cent. CDS maturing in March were quoted at 7.75-7.95 per cent, unchanged from Friday.