Banks continued to issue certificates of deposit (CDs) today, on hope rates could rise in the coming weeks and to refinance their existing Cds, dealers said.
“There are still some views that Reserve Bank of India (RBI) can hike cash reserve ratio (CRR) in sometime,” said a dealer with a mutual fund.
CD rates have risen 50 basis points this month, on anticipation that RBI could hike its policy rates. Three-month certificates of deposit were quoted at 3.85-4.0 per cent, while three-month commercial papers were quoted at 4.20-4.40 per cent, both unchanged from Wednesday.