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Short-Term Debt: Rates flat; Reliance Retail Ventures top CP issuer

Informist, Tuesday, May 24, 2022


By Vishal Sangani


MUMBAI – Rates on short-term debt papers such as commercial papers and certificates of deposit were unchanged because of lower issuances in the primary market today, dealers said.


Rates on three-month CPs of non-bank finance companies were quoted at 5.50-5.80%, while those on papers of manufacturing companies were at 5.25-5.45%.


Rates on three-month CDs were quoted at 5.10-5.30%.


Rates also remained flat as some market participants avoided placing large bets and remained on the sidelines in the absence of fresh domestic triggers.


On the issuances side, so far today, CPs aggregating 34.25 bln rupees were issued, as against 38.50 bln rupees on Monday. Reliance Retail Ventures was the major issuer, raising 27.50 bln rupees through papers maturing in three months at 5.25%.


Some companies tapped the market today to roll over papers set to mature in the coming days and also to meet fresh requirements for funds.


On the other hand, banks did not issue any certificate of deposit today as there is no immediate need for funds. 


Liquidity in the banking system is currently estimated to be in a surplus of over 3.39 trln rupees, as against 3.60 trln rupees on Monday. The surplus narrowed due to outflows on account of goods and service tax payments and a hike in the cash reserve ratio of banks, which sucked out around 870 bln rupees from the banking system.


On May 4, the RBI had announced a hike in the cash reserve ratio of banks by 50 basis points to 4.5% of net demand and time liabilities, effective from Saturday.


The liquidity surplus also narrowed due to payments for government bonds auctioned.


–Primary market

* Reliance Retail Ventures, ONGC Petro additions, Birla Group Holdings and Godrej Properties raised funds through CPs.


–Secondary market

* Indian Bank’s CD maturing on Jun 1 was dealt four times at a weighted average yield of 4.3979%

* Larsen & Toubro’s CP maturing on Jun 30 was dealt four times at a weighted average yield of 4.7102%


At 1530 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:


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 Sushmita Mukherjee


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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