Informist, Wednesday, Jan 10, 2024
By Sachi Pandey
MUMBAI – Funds raised through commercial papers rose today due to the big-ticket issuance by Reliance Retail Ventures Ltd, dealers said. The company raised 20 bln rupees through papers maturing in March at 7.23%.
National Bank for Agriculture and Rural Development also raised funds through CPs. The state-owned non-bank raised 11 bln rupees through papers maturing in April at 7.60%.
So far in the day, companies and financial institutions have raised a total of 37 bln rupees through CPs against 11.50 bln rupees on Tuesday.
Fundraising through certificates of deposit was subdued, with Punjab National Bank being the sole issuer so far. The bank raised 11 bln rupees through CDs maturing in April at 7.58%.
Rates on short-term debt instruments were largely steady today, but remain high due to the liquidity deficit in the banking system, dealers said. Rates on three-month CPs issued by non-banking finance companies were flat at 8.10-8.30%. Rates on papers of similar maturity issued by manufacturing companies were also flat at 7.60-7.80%.
Rates on CDs were flat at 7.55-7.75%.
“We don’t expect any changes in the liquidity, it is supposed to stay the same (in deficit) only for some time,” said a dealer with a mid-sized brokerage firm.
At the end of Tuesday, the liquidity deficit in the banking system was 1.57 trln rupees as against 1.55 trln rupees on Monday, according to the Reserve Bank of India data.
–Primary market
* Axis Securities, Reliance Retail Ventures, Motilal Oswal Financial Services, and NABARD raised funds through CPs.
* Punjab National Bank raised funds through CDs.
–Secondary market
* Small Industries Development Bank of India’s CD maturing on Thursday was dealt four times at a weighted average yield of 6.7927%.
* Panatone Finvest’s CP maturing on Jan 22 was dealt twice at a weighted average yield of 7.6507%.
At 1700 IST, the 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:
End
With inputs from Asmita Patil
Edited by Ashish Shirke
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