Issuances of certificates of deposit fell On Thursday as mutual funds refrained from purchasing papers at lower rates, dealers said. Banks have placed around Rs 5,000 crore worth of certificates of deposit this week.
A number of banks were looking to place CDs but the rates they were offering were much lower than what the investors were quoting. On Thursday, only one bank placed one-year of certificate of deposit in the market.
Three-month certificates of deposit were quoted at 6.25-6.75 per cent On Thursday, unchanged from Wednesday. Mutual funds received limited inflows in their schemes and therefore, refrained from investing bulk amounts in the primary market.
