Indian banks raise Rs 1,610 crore through CDs

Written by Reuters | Mumbai | Updated: Dec 31 2009, 04:42am hrs
Indian banks on Tuesday raised Rs 1,610 crore via certificates of deposit (CDs), a Thomson Reuters data showed.

United Bank of India raised Rs 625 crore in two tranches. It sold Rs 400 crore of notes yielding 3.92% and maturing on March 23, 2010, and Rs 225 crore of 4.92% notes maturing June 21, 2010.

State Bank of Patiala raised Rs 250 crore via two tranches of 5.75% notes. It sold Rs 150 crore of notes maturing November 15, 2010, and Rs 100 crore of notes maturing November 20, 2010. Canara Bank raised Rs 435 crore in two tranches. It sold Rs 285 crore of 4.55% notes maturing April 7, 2010, and Rs 150 crore of 4.78% notes maturing June 15, 2010.

Andhra Bank sold Rs 200 crore of 4.82% notes maturing June 20, 2010.

Union Bank sold Rs 100 crore of 3.85% notes maturing March 30, 2010.

The yield on the Reuters benchmark three-month certificates of deposit was unchanged at Thursday's 3.9%. The market was shut on Friday and Monday for religious holidays.

Secondary volumes rose to Rs 610 crore on Tuesday from Rs 400 crore on Thursday.

Indian banks had issued CDs worth Rs 1,775 crore on Thursday.

For the week to December 24, total CD issuance amounted to Rs 11,130 crore compared with Rs 8,885 crore a week earlier, while secondary volumes were at Rs 2,575 crore versus Rs 3,900 crore.