Banks continued to issue certificates of deposit (CDs) on expectations the Reserve Bank of India might hike the cash reserve ratio (CRR) in its policy on January 29, dealers said.
This month banks placed around Rs 17,500 crore of CDs. Rates on short-term papers rose by 30 basis points this month. State Bank of Travancore’s December maturity CDs were dealt at 5.90 per cent, up from 5.61 per cent on January 1.
Three-month CDs were quoted at 4.50-4.60 per cent, unchanged from Friday.
Three-month commercial papers (CPs) were quoted at 4.80-5 per cent, compared with 4.90-5.10 per cent on Friday.
One-year CDs were quoted at 5.95-6.10 per cent, unchanged from Friday.
