Monday, Jan 20
By Vishal Sangani
MUMBAI – Issuances of commercial papers by non-bank finance companies rose today due to funding requirements and also as they rolled over papers set to mature in coming days, dealers said.
So far today, CPs worth 30.25 bln rupees have been issued, of which NBFCs raised 29.50 bln rupees. National Bank for Agriculture and Rural Development was the major issuer, raising 20 bln rupees through papers maturing in five months at 5.65%.
On Friday, CPs aggregating 15.95 bln rupees were issued.
Issuances by manufacturing companies were lower today due to low requirement for funds and also as they had borrowed heavily last week, dealers said.
CP issuances are expected to remain firm in the coming days as companies may tap the market to roll over papers that are set to mature in the comings days. During Jan 20-31, CPs to the tune of 705.16 bln rupees are set to mature, according to data compiled by Cogencis.
Rates on short-term debt papers were unchanged today due to steady demand from mutual funds, dealers said.
Rates on CPs of non-bank finance companies maturing in March were quoted at 5.40-5.55%, and those on manufacturing companies of the same maturity were in the range of 5.20-5.25%.
Rates on CDs maturing at the end of March were at 5.15-5.30%.
Rates were also steady due to ample liquidity in the banking system. Liquidity in the banking system is estimated to be in a surplus of 3.05 trln rupees.
IndusInd Bank was the lone issuer of certificates of deposit today. The private bank raised 4.5 bln rupees, dealers said.
On Friday, CDs worth 20.0 bln rupees were issued.
Most banks did not tap the market due low demand for funds as systemic liquidity is ample.
* Muthoot Finance, SBI Cards & Payments Services, Tata Capital Financial Services, ICICI Home Finance, National Bank for Agriculture and Rural Development, Blue Star and Godrej Industries raised funds through CPs
* Bank of Baroda’s CD maturing on Jan 12, 2021 was dealt four times at a weighted average yield of 5.9950%
* NABARD’s CP maturing on Mar 13 was dealt three times at a weighted average yield of 5.1699%
Following are the volumes at 1640 IST in the secondary market for short-term debt, in bln rupees, as detailed by the Clearing Corp of India’s F-TRAC platform:
Certificates of deposit
NOTE: Details of the deals have been received from market sources
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Arshad Hussain
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