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Thursday, September 29, 2022

Short-Term Debt: BPCL lone issuer of CP; rates in narrow range

Informist, Thursday, Jul 21, 2022


By Vishal Sangani


MUMBAI – Bharat Petroleum Corp Ltd was the lone issuer of commercial papers today, raising 20.00 bln rupees at 5.46% through papers maturing on Sep 27. The state-owned oil company tapped the market to meet their funding requirements, dealers said.


On Wednesday, seven companies had raised a total of 20.50 bln rupees through issuances of CPs.


Funds raised by companies were low as they have already rolled over papers set to mature in the next few days.


Participation was also low because of lack of requirement for funds and a surge in rates.


Rates on short-term debt papers had surged as surplus liquidity narrowed in the banking system, and also tracking the higher cut-off set by the Reserve Bank of India at the Treasury-bills auction, dealers said.


Liquidity in the banking system is currently estimated to be in a surplus of over 1.55 trln rupees as against 1.70 trln rupees on Wednesday.


The surplus is expected to narrow further in the coming days due to outflows on account of goods and service tax payments, dealers said.


On Wednesday, cut-off yield at the auction for 91-day Treasury bills was set at 5.3987% as against 5.2401% on Jul 13.


Usually, short-term debt papers are issued at a premium over the yield of Treasury bills.


Rates on short-term debt papers were in a narrow range today because of lower market participants.


Rates on three-month CPs of non-bank finance companies were quoted at 5.80-6.00%, while those on papers of manufacturing companies were quoted at 5.60-5.80%.


Rates on three-month certificates of deposit were quoted at 5.45-5.70%.


On the other hand, banks did not issue any CDs today as there was no immediate need for funds.


On Wednesday, Indian Bank was the lone issuer and had raised 25.00 bln rupees through CDs.


–Secondary market

* HDFC Bank’s CD maturing on Jun 15 was dealt 17 times at a weighted average yield of 6.5480%

* Housing Development Finance Corp’s CP maturing on Aug 17 was dealt at a weighted average yield of 5.1000%


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 Tanima Banerjee


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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