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Short-Term Debt: CP supply rises on steady demand for funds by cos

Informist, Wednesday, Jul 6, 2022


By Vishal Sangani


MUMBAI – Supply of commercial papers rose today owing to steady demand for funds by companies, dealers said.


Some companies also tapped the market to roll over papers set to mature in the coming days. 


Supply of commercial papers by manufacturing companies rose as they raised 19.25 bln rupees from total issuances today, compared with 750 mln rupees on Tuesday.


So far today, commercial papers aggregating 32.25 bln rupees were issued, as against 9.50 bln rupees on Tuesday. Hindustan Petroleum Corp was the major issuer, raising 16.00 bln rupees through papers maturing on Sep 28 at 5.15%.


Papers floated by big-ticket issuers were readily absorbed owing to their low-risk profile.


Rates on short-term debt were unchanged today because of the prevailing surplus liquidity in the banking system.


Rates on three-month commercial papers of non-banking financial companies were quoted at 5.65-5.80%, while those on papers of manufacturing companies were quoted at 5.45-5.65%.


Rates on three-month certificates of deposit were quoted to 5.25-5.55%.


Liquidity in the banking system is currently estimated to be in a surplus of over 3.23 trln rupees as against 2.88 trln rupees on Tuesday. The surplus has widened due to some inflow in the banking system, dealers said.


Issuances of certificates of deposit rose today as Punjan & Sind Bank and IDFC First Bank tapped the market to meet their funding requirements, dealers said.


So far, certificates of deposit worth 15.00 bln rupees were issued as against 10.00 bln rupees on Tuesday.


–Primary market

* ICICI Securities, Housing Development Finance Corp, Tata Capital Housing Finance, Hindustan Petroleum Corp, Godrej Industries, ICICI Securities Primary Dealership, Hero Fincorp and Chambal Fertilisers and Chemicals raised funds through commercial papers.


–Secondary market

* National Bank for Agriculture and Rural Development’s certificates of deposit maturing on Feb 14 was dealt two times at a weighted average yield of 6.0000%

* Housing Development Finance Corp’s commercial papers maturing on Nov 29 was dealt three times at a weighted average yield of 5.8699%


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


For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.


Cogencis news is now Informist news. 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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