{"id":9265,"date":"2025-05-23T18:38:49","date_gmt":"2025-05-23T13:08:49","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=9265"},"modified":"2025-05-23T18:40:35","modified_gmt":"2025-05-23T13:10:35","slug":"indusind-bank-returns-to-cd-market-after-two-month-gap-pays-higher-rate-amid-ongoing-uncertainty","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/indusind-bank-returns-to-cd-market-after-two-month-gap-pays-higher-rate-amid-ongoing-uncertainty\/","title":{"rendered":"IndusInd Bank Returns to CD Market After Two-Month Gap, Pays Higher Rate Amid Ongoing Uncertainty"},"content":{"rendered":"
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IndusInd Bank taps CD market at 50 basis points higher than peers due to ongoing volatility.<\/em><\/p>\n

After nearly two months of silence in the primary market, IndusInd Bank has re-entered the certificates of deposit (CD) market, raising \u20b91,500 crore on May 21, 2025. The private lender’s return comes amid ongoing uncertainty around its operations following lapses in its derivatives portfolio and high-level resignations.<\/p>\n

According to data from the Clearing Corporation of India (CCIL), the bank issued CDs with a three-month maturity, due on August 25, 2025, offering a yield of 6.90%. This rate is significantly higher\u2014by nearly 40\u201350 basis points\u2014than what its peers are currently offering for similar maturity papers, which range between 6.40% and 6.50%.<\/p>\n

A Delayed Return After March Fundraising Spree<\/h2>\n

This marks IndusInd Bank\u2019s first CD issuance since March 20, when the bank aggressively raised more than \u20b916,500 crore through CDs. The bank had remained inactive in the primary CD market following this large-scale fundraising effort, likely as it reassessed its financial positioning amid emerging challenges.<\/p>\n

Higher Yields Reflect Market Caution<\/h3>\n

The elevated yields signal the market’s cautious stance towards IndusInd Bank. Money market experts believe the higher cost of borrowing reflects investor concerns that still persist around the bank\u2019s financial health. The increased yield also mirrors secondary market trends, where the bank’s CD yields have surged by 10\u201315 basis points since the start of the fiscal year, despite lower trading volumes compared to other major private and state-owned banks.<\/p>\n

The Trigger: Derivatives Lapses and Top-Level Exits<\/h3>\n

The uncertainty traces back to March, when IndusInd Bank reported an accounting discrepancy in its derivatives portfolio. Independent reviews estimated the adverse impact of the issue at \u20b91,979 crore and \u20b91,959.98 crore, respectively.<\/p>\n

The fallout from the revelations was swift. On April 29, CEO and MD Sumant Kathpalia resigned, followed closely by Deputy CEO Arun Khurana\u2019s resignation on April 30. These back-to-back exits raised further concerns in the market, contributing to the cautious outlook from investors and a higher risk premium on the bank\u2019s borrowings.<\/p>\n

What This Means for Investors and the Market<\/h3>\n

The return of IndusInd Bank to the CD market indicates a step toward regaining financial stability, but the higher borrowing cost reflects the challenges that still lie ahead. The bank may need to work on rebuilding investor confidence through improved transparency, governance reforms, and clear communication about its recovery plans.<\/p>\n

As the situation evolves, all eyes will be on how IndusInd Bank navigates market sentiment and whether it can reduce its borrowing costs over time by restoring trust in its operations.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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IndusInd Bank taps CD market at 50 basis points higher than peers due to ongoing volatility. After nearly two months of silence in the primary market, IndusInd Bank has re-entered the certificates of deposit (CD) market, raising \u20b91,500 crore on May 21, 2025. The private lender’s return comes amid ongoing uncertainty around its operations following […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-9265","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-political-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=9265"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9265\/revisions"}],"predecessor-version":[{"id":9266,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9265\/revisions\/9266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8673"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=9265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=9265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=9265"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=9265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}