Informist, Monday, Sep 4, 2023
By Asmita Patil
MUMBAI – Punjab National Bank was the sole issuer of certificates of deposits today, raising 40 bln rupees through papers maturing in November at 7.08% rate.
So far, none of the companies or financial institutions have issued commercial papers, dealers said. On Friday, CPs worth 19.50 bln rupees were issued.
Export-Import Bank of India became the major issuer of CPs on Friday, raising 12 bln rupees through papers maturing in three months at 6.99%.
“Liquidity has eased, but there are still concerns about RBI’s decision on ICRR (incremental cash reserve ratio) so rates have remained flat.” a dealer with a mid-sized brokerage firm said.
In August, the Reserve Bank of India had imposed an incremental cash reserve ratio of 10% on increase in the scheduled banks’ net demand and time liabilities between May 19 and Jul 28.
The RBI said that the incremental CRR is purely a temporary measure for managing the liquidity overhang and will be reviewed on Sep 8 or earlier with a view to returning the impounded funds to the banking system ahead of the festival season.
At the close of trade on Friday, liquidity in the system was estimated to be in a surplus of 851.65 bln rupees, up from 802.34 bln rupees on Thursday.
Recently, liquidity in the banking system had slipped into deficit for the first time in the current financial year started April due to the incremental cash reserve ratio and monthly outflows on account of goods and services tax payments.
Rates on three-month CPs issued by non-banking financial companies were quoted at 7.20-7.40%, and rates on papers of manufacturing companies were 7.10-7.30%.
Rates on three-month certificates of deposit were quoted at 7.00-7.20%.
–Primary market
* Punjab National Bank raised funds through CDs.
–Secondary market
* Bank of Baroda’s CD maturing on Tuesday was dealt thrice at a weighted average yield of 6.3156%.
* Small Industries Development Bank of India’s CP maturing on Tuesday was dealt 17 times at a weighted average yield of 6.3833%.
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:
NOTE: Details of the deals have been received from market sources.
End
Edited by Maheswaran Parameswaran
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
