Rates on certificates of deposit (CDs) rose for the third straight day On Wednesday because of banks’ year-end rush to issue CDs and boost their deposit base, dealers said.
Today rates went up 10 basis points and have risen a cumulative 30-35 basis points since Monday. Total CD issuances were around Rs 2,500 crore of CDs, as against Rs 4,000 crore on Tuesday.
Andhra Bank’s six-month CDs were placed at 7.52 per cent today compared with 7.42 per cent on Tuesday. Volumes remained subdued in the secondary market due to big supply of CDs through primary issuances.CDs maturing in July were dealt at 6.70-6.80 per cent.