Informist, Tuesday, Jun 28, 2022
By Vishal Sangani
MUMBAI – The volume of funds raised through certificates of deposit fell today in the absence of big-ticket issuances, dealers said.
So far today, CDs worth 30.00 bln rupees were issued, as against 40.25 bln rupees on Monday. Indian Bank was the major issuer, raising 20.00 bln rupees through papers maturing on Aug 17 at 5.18%.
On Monday, HDFC Bank had raised 35.00 bln rupees through CDs.
A few state-owned banks raised money to meet fresh requirements for funds as surplus liquidity in the banking system remains low, dealers said.
Liquidity in the banking system is currently estimated to be in a surplus of over 2.16 trln rupees.
The banks also tapped the market to meet credit disbursement, dealers said.
Typically, fundraising by banks rises towards the end of every quarter to meet quarter-end requirements and boost balance sheets.
On the other hand, there were no issuances of commercial papers as companies weren’t in immediate need for funds, dealers said. On Monday, companies had raised 16.05 bln rupees through CP issuances.
Capital raising by some companies has declined as they have already rolled over papers set to mature in the next few days.
Participation was also low because of a few rollovers in the primary market.
Rates on short-term debt papers were flat today due to lack of major domestic cues and lower issuances of such papers, dealers said.
Rates on three-month CPs of non-bank finance companies were quoted at 5.55-5.80%, while those on papers of manufacturing companies were quoted at 5.35-5.65%.
Rates on three-month CDs were quoted at 5.20-5.45%.
–Primary market
* Punjab National Bank and Indian Bank raised funds through CDs.
–Secondary market
* HDFC Bank’s CD maturing on Wednesday was dealt two times at a weighted average yield of 4.8551%
* Reliance Industries’ CP maturing on Wednesday was dealt two times at a weighted average yield of 4.8551%
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:
NOTE: Details of the deals have been received from market sources.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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