Informist, Tuesday, Jan 16, 2024
By Sachi Pandey
MUMBAI – A big ticket issuance by Bajaj Finance led to a rise in fundraising through commercial paper today, dealers said. So far today, companies and financial institutions have raised 47.25 bln rupees through CPs against 5.25 bln rupees on Monday. Of this, Bajaj Finance alone raised 40 bln rupees through CPs maturing in three months at 8.30%.
“Yields were a bit higher as compared to yesterday because of the tighter liquidity,” said a deputy vice president at a mutual fund house.
At the end of trade on Monday, the liquidity deficit in the banking system was 2.11 trln rupees, as against 1.86 trln rupees on Sunday, according to the Reserve Bank of India data. The deficit widened due to outflows owing to gilt auction payments worth 330 bln rupees, dealers said.
Rates on three-month CPs issued by non-banking finance companies rose to 8.30-8.50 from 8.15-8.45% on Monday. However, rates on other short-term debt instruments remained flat because of a lack of issuances. Rates on three-month papers issued by manufacturing companies were flat at 7.65-7.85%.
Rates on three-month certificates of deposits also remained flat at 7.60-7.80%. After heavy issuances of long-term papers on Monday through CDs, so far no deals have been reported today.
On Monday, banks and financial institutions raised 152.75 bln rupees through CDs. The National Bank for Agriculture and Rural Development was the biggest issuer of CDs Monday raising 50 bln rupees through paper maturing in one year at 7.89%.
–Primary market
* Bajaj Finance, LIC Housing Finance, and Axis Securities raised funds through CPs.
–Secondary market
* Kotak Mahindra Bank’s CD maturing in January 2025 was dealt once at a weighted average yield of 7.8100%.
* Panatone Finvest’s CP maturing on Monday was dealt four times at a weighted average yield of 7.6352%.
At 1700 IST, the 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:
End
Edited by Saji George Titus
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