Informist, Monday, Sep 19, 2022

By Vishal Sangani

MUMBAI – ICICI Home Finance Ltd was the lone issuer of commercial papers today, raising 1.50 bln rupees through papers maturing in three months at 6.40%.

On Friday, companies raised 36.00 bln rupees through issuances of commercial papers.

The volume of funds raised through commercial papers also fell in the absence of big-ticket issuances and lower issuances by manufacturing companies as they have already rolled over papers, which were set to mature in the next few days.

On Friday, National Bank for Agriculture and Rural Development raised 20.00 bln rupees through commercial papers.

Capital raising by some companies was also low due to a surge in rates, dealers said.

Since last week, rates on short-term debt papers are 15-20 basis points higher in primary market as surplus liquidity in the banking system narrowed.

The rates on short-term debt papers were unchanged today because of lower market participants.

Rates on three-month commercial papers of non-banking finance companies were quoted at 6.30-6.45%, while those on papers of manufacturing companies were quoted at 6.10-6.30%.

Rates on three-month certificates of deposit were quoted at 6.00-6.25%.

Meanwhile, Indian Bank was the lone issuer of certificates of deposit today, raising 2.00 bln rupees at 6.10% through papers maturing on Oct 21. The state-owned lender tapped the market for its funding needs and also because surplus liquidity in the banking system narrowed, dealers said.

On Friday, the only issuer HDFC Bank raised 20.00 bln rupees through certificates of deposit.

Liquidity in the banking system is currently estimated to be in a surplus of over 229.13 bln rupees as against 482.07 bln rupees on Friday. The surplus narrowed to the lowest level since June 2019.

The surplus liquidity has narrowed sharply due to outflows of advance tax payment for Jul-Sep and expected to narrow further in the coming days due to outflows on account of goods and services tax payments.

--Secondary market

* Indian Bank's certificates of deposit maturing on Oct 10 were dealt four times a weighted average yield of 6.1812%

* NTPC's commercial papers maturing on Sep 26 were dealt six times at a weighted average yield of 5.9981%

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 Deepshikha Bhardwaj

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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Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Monday, Sep 19, 2022

By Vishal Sangani

MUMBAI – ICICI Home Finance Ltd was the lone issuer of commercial papers today, raising 1.50 bln rupees through papers maturing in three months at 6.40%.

On Friday, companies raised 36.00 bln rupees through issuances of commercial papers.

The volume of funds raised through commercial papers also fell in the absence of big-ticket issuances and lower issuances by manufacturing companies as they have already rolled over papers, which were set to mature in the next few days.

On Friday, National Bank for Agriculture and Rural Development raised 20.00 bln rupees through commercial papers.

Capital raising by some companies was also low due to a surge in rates, dealers said.

Since last week, rates on short-term debt papers are 15-20 basis points higher in primary market as surplus liquidity in the banking system narrowed.

The rates on short-term debt papers were unchanged today because of lower market participants.

Rates on three-month commercial papers of non-banking finance companies were quoted at 6.30-6.45%, while those on papers of manufacturing companies were quoted at 6.10-6.30%.

Rates on three-month certificates of deposit were quoted at 6.00-6.25%.

Meanwhile, Indian Bank was the lone issuer of certificates of deposit today, raising 2.00 bln rupees at 6.10% through papers maturing on Oct 21. The state-owned lender tapped the market for its funding needs and also because surplus liquidity in the banking system narrowed, dealers said.

On Friday, the only issuer HDFC Bank raised 20.00 bln rupees through certificates of deposit.

Liquidity in the banking system is currently estimated to be in a surplus of over 229.13 bln rupees as against 482.07 bln rupees on Friday. The surplus narrowed to the lowest level since June 2019.

The surplus liquidity has narrowed sharply due to outflows of advance tax payment for Jul-Sep and expected to narrow further in the coming days due to outflows on account of goods and services tax payments.

--Secondary market

* Indian Bank's certificates of deposit maturing on Oct 10 were dealt four times a weighted average yield of 6.1812%

* NTPC's commercial papers maturing on Sep 26 were dealt six times at a weighted average yield of 5.9981%

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 Deepshikha Bhardwaj

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.