Informist, Monday, Dec 26, 2022

By Vishal Sangani

MUMBAI – Indian Bank was the lone issuer of certificates of deposit today, raising 14 bln rupees at 7.24% through papers maturing on Apr 5. 

The state-owned lender tapped the market for its funding needs and also due to strong growth for credit, dealers said. With the pace of growth in credit almost double that in deposits, banks continue to rely on the short-term debt market to meet the demand for credit.

According to the latest data from the Reserve Bank of India, advances in the banking system rose 17.45% on year to 131.07 trln rupees in the fortnight ended Dec 2. Deposits continued to lag credit growth, growing 9.85% on year to 175.24 trln rupees as on Dec 2.

The credit growth has been on an uptrend, with wholesale and retail contributing to the same. Credit for the services sector accelerated primarily due to a rise in non-banking financial companies and trade segments, CareEdge said in a report.

On the other hand, there were no issuances of commercial papers in the primary market today due to low market participation.

Some market participants stayed on the sidelines, with most of them on leave due to Christmas week and ahead of New Year.

On Friday, companies had raised 8.00 bln rupees.

Some companies also remained on the sideline as they weren't in immediate need of funds, and a few companies have already rolled over papers set to mature in the next few days.

Rates on short-term debt papers were steady because of lower issuances in primary market, dealers said.

Rates on three-month CPs issued by non-banking finance companies were quoted at 7.15-7.40%, while rates on papers of manufacturing companies were quoted at 6.90-7.15%.

Rates on three-month CDs were quoted at 6.85-7.10%.

Rates on short-term debt are likely to remain in a narrow range in coming days due to lack of significant domestic cues.

--Secondary market

* Canara Bank's CD maturing on Mar 17 was dealt five times at a weighted average yield of 6.8199%

* Small Industries Development Bank of India's CP maturing on Mar 20 was dealt six times at a weighted average yield of 6.8767%

At 1620 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 Aditya Sakorkar

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, Dec 26, 2022

By Vishal Sangani

MUMBAI – Indian Bank was the lone issuer of certificates of deposit today, raising 14 bln rupees at 7.24% through papers maturing on Apr 5. 

The state-owned lender tapped the market for its funding needs and also due to strong growth for credit, dealers said. With the pace of growth in credit almost double that in deposits, banks continue to rely on the short-term debt market to meet the demand for credit.

According to the latest data from the Reserve Bank of India, advances in the banking system rose 17.45% on year to 131.07 trln rupees in the fortnight ended Dec 2. Deposits continued to lag credit growth, growing 9.85% on year to 175.24 trln rupees as on Dec 2.

The credit growth has been on an uptrend, with wholesale and retail contributing to the same. Credit for the services sector accelerated primarily due to a rise in non-banking financial companies and trade segments, CareEdge said in a report.

On the other hand, there were no issuances of commercial papers in the primary market today due to low market participation.

Some market participants stayed on the sidelines, with most of them on leave due to Christmas week and ahead of New Year.

On Friday, companies had raised 8.00 bln rupees.

Some companies also remained on the sideline as they weren't in immediate need of funds, and a few companies have already rolled over papers set to mature in the next few days.

Rates on short-term debt papers were steady because of lower issuances in primary market, dealers said.

Rates on three-month CPs issued by non-banking finance companies were quoted at 7.15-7.40%, while rates on papers of manufacturing companies were quoted at 6.90-7.15%.

Rates on three-month CDs were quoted at 6.85-7.10%.

Rates on short-term debt are likely to remain in a narrow range in coming days due to lack of significant domestic cues.

--Secondary market

* Canara Bank's CD maturing on Mar 17 was dealt five times at a weighted average yield of 6.8199%

* Small Industries Development Bank of India's CP maturing on Mar 20 was dealt six times at a weighted average yield of 6.8767%

At 1620 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 Aditya Sakorkar

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 feedback@informistmedia.com

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