Informist, Tuesday, Jul 18, 2023
By Asmita Patil
MUMBAI – Funds raised through commercial papers fell today due to lack of big ticket issuances, dealers said.
So far today, CPs totalling 5.25 bln rupees have been issued, compared with 39.75 bln rupees on Monday. Issuances were easily absorbed by mutual funds because of their small size, dealers said.
On Monday, Small Industries Development Bank of India raised 30 bln rupees through papers maturing in seven months at 7.24% rate.
Lack of major activity kept rates on short-term papers flat today, dealers said.
Rates on three-month commercial papers issued by non-banking financial companies were quoted at 7.10-7.30%, while rates on papers of manufacturing companies were quoted at 7.00-7.20%.
Rates on three-month certificates of deposit were at 6.90-7.10%. None of the banks issued CDs today as there was no immediate need for funds amid surplus liquidity in the banking system, dealers said.
Liquidity in the banking system was estimated to be in a surplus of 1.35 trln rupees at the start of trade today, compared with 1.95 trln rupees on Monday.
Banks have parked 598.75 bln rupees in reverse repo tenders with the RBI, scheduled for reverse on Jul 28.
–Primary market
* Redington India, Birla Group Holdings, and Motilal Oswal Financial Services raised funds through CPs
–Secondary market
* Punjab National Bank’s CD maturing on Mar 7, 2024, was dealt thrice at a weighted average yield of 7.1700%
* HDFC Bank’s CP (erstwhile Housing Development Finance Corp) maturing on Apr 24, 2024, was dealt twice at a weighted average yield of 7.6800%
At 1700 IST, following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India’s F-TRAC platform:
NOTE: Details of the deals have been received from market sources.
End
Edited by Manisha Baxla
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