4 C
New York
Sunday, February 25, 2024

Short-Term Debt: CP amount a tad up on big-ticket issuance by NABARD

Informist, Thursday, Oct 12, 2023

 

By Sony

MUMBAI – Fundraising through commercial papers rose today due to big ticket issuances by National Bank for Agriculture and Rural Development, dealers said.

 

So far, companies and financial institutions have raised 49 bln rupees through CPs, as against 40.25 bln rupees on Wednesday. Of the total funds raised, National Bank for Agriculture and Rural Development mobilised 28 bln rupees through papers maturing in three months at 7.18%.  

 

Rates on three-month commercial papers issued by non-banking financial companies were flat at

7.55-7.75%. Rates on papers of similar maturity issued by manufacturing companies were also flat at 7.20-7.40%.

 

Rates on three-month certificates of deposit rose slightly to 7.15-7.35% from 7.12-7.32% on Wednesday, dealers said. Canara Bank was the sole issuer of CDs, raising 12 bln rupees through papers maturing in three months at 7.18%. 

 

Liquidity deficit in the banking system is expected to keep rates on short-term instruments high, dealers said. 

 

“Liquidity is expected to remain tight unless the market gets clarity from the Reserve Bank of India regarding the liquidity conditions,” a dealer with a brokerage firm said. 

 

At the start of trade today, liquidity in the banking system was estimated to be in a deficit of 504.87 bln rupees, against 418.84 bln rupees on Wednesday.

 

Liquidity slumped into deficit due to a likely intervention by the Reserve Bank of India in the foreign exchange market, dealers said.

 

–Primary market

* National Bank for Agriculture and Rural Development, Axis Finance, Bajaj Finance, Tata Motors Finance Solutions, Pilani Investment and Industries Corp and Axis Securities raised funds through CPs.

* Canara Bank raised funds through CDs.

 

–Secondary market
* Union Bank of India’s CD maturing on Jan 10 was dealt five times at a weighted average yield of 7.1699%.
* Reliance Retail Ventures’s CP maturing on Oct 27 was dealt at a weighted average yield of 6.9989%.

 

At 1700 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

Today

Previous

Today

Previous

15.27

10.9017.7017.55

 

NOTE: Details of the deals have been received from market sources.

 

End

 

Edited by Vandana Hingorani

 

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.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2023. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,268FansLike
12,893FollowersFollow
730FollowersFollow
- Advertisement -

Latest Articles

Popular Articles