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Short-Term Debt: CP issuances up on demand for funds by PSU cos

Informist, Monday, May 2, 2022


By Vishal Sangani


MUMBAI – Issuances of commercial papers increased today as a few state-owned companies tapped the market to roll over papers set to mature in the coming days and also to meet their funding requirements, dealers said.


So far today, commercial papers aggregating 28.00 bln rupees were issued as against those amassing 24.00 bln rupees sold on Friday.


The supply of papers by big-ticket issuers was readily absorbed because of their low-risk profile.


Fundraising by non-banking financial companies was low as they have already rolled over papers set to mature in the next few days and also due to low requirement for funds.


Market participation was low as traders avoided placing large bets ahead of a holiday. Money markets will remain closed on Tuesday for Ramzan Id-ul-Fitr.


Rates on short-term debt papers were steady today due to lack of major domestic cues, dealers said.


Rates on three-month commercial papers of non-bank financial companies were quoted at 4.30-4.55%, while those on papers of manufacturing companies were quoted at 4.10-4.30%.


Rates on three-month certificates of deposit were steady at 4.00-4.20%.


Meanwhile, Indian Bank was the lone issuer of certificates of deposits today, raising 7.50 bln rupees through papers maturing in three months. It tapped the market to meet its funding requirements, dealers said.


Liquidity in the banking system is currently estimated to be in a surplus of over 5.47 trln rupees as against 4.76 trln rupees on Friday. The liquidity surplus is expected to widen in the coming days on account of the government’s month-end spending in the form of salaries and pension payouts.


–Primary market

* Indian Oil Corp and Hindustan Petroleum Corp raised funds through commercial papers.


–Secondary market

* Bank of Baroda’s certificates of deposit maturing on May 10 were dealt six times at a weighted average yield of 3.8998%

* National Bank for Agriculture and Rural Development’s commercial papers maturing on May 19 were dealt six times at a weighted average yield of 3.9191%


At 1530 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:


Certificates of deposit

Commercial papers







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 Deepshikha Bhardwaj


Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.


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Source: Cogencis

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