Informist, Monday, Nov 7, 2022
By Vishal Sangani
MUMBAI – A large issuance by Small Industries Development Bank of India led to a spike in funds raised through commercial papers today.
So far today, CPs aggregating 64.00 bln rupees were issued, against 3.25 bln rupees on Friday. Small Industries Development Bank of India raised 49.00 bln rupees in total through papers maturing on Jan 31 and three months at 6.93% and 6.95%, respectively.
Financial institutions tapped the market to meet their funding requirements and to roll over papers that are set to mature in the coming days.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
Non-banking finance companies were the major issuers today, tapping the market for their credit disbursement, dealers said.
Domestic money markets are closed on Tuesday on account of Gurunanak Jayanti.
Despite a surge in issuances, rates on short-term debt papers were range bound because of firm demand from mutual funds, dealers said.
Mutual funds have seen continuous inflow into liquid funds, which are then deployed in short-term debt papers. They are also reinvesting the funds received from the maturity of short-term papers.
Rates on three-month CPs were quoted at 7.25-7.45%, while those on papers of manufacturing companies were quoted at 7.10-7.35%.
Rates on three-month certificates of deposit were quoted at 6.95-7.25%.
Issuances of certificates of deposits increased today as a few private banks tapped the market for its funding needs, dealers said.
So far today, CDs aggregating 30.00 bln rupees were issued, against 3.25 bln rupees on Friday. IndusInd Bank and IDFC First Bank raised 15.00 bln rupees each through papers at 6.70% and 7.14%, respectively.
Private lenders also tapped the market to roll over papers set to mature in the coming days.
Supply of fresh CDs by other banks were low as there was no immediate need for funds owing to surplus liquidity in the banking system.
Liquidity in the banking system is currently estimated to be in a surplus of over 858.40 bln rupees as against 939.66 bln rupees on Friday.
--Primary market
* Small Industries Development Bank of India, Tata Motors Finance, Aditya Birla Finance, Can Fin Homes and HDFC Securities raised funds through CPs.
--Secondary market
* Kotak Mahindra Bank's CD maturing on Feb 3 was dealt at a weighted average yield of 6.8501%
* Tata Capital Financial Services' CP maturing on Dec 8 was dealt two times at a weighted average yield of 6.6747%
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:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 6.80 | 9.05 | 3.60 | 4.00 |
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 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 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Monday, Nov 7, 2022
By Vishal Sangani
MUMBAI – A large issuance by Small Industries Development Bank of India led to a spike in funds raised through commercial papers today.
So far today, CPs aggregating 64.00 bln rupees were issued, against 3.25 bln rupees on Friday. Small Industries Development Bank of India raised 49.00 bln rupees in total through papers maturing on Jan 31 and three months at 6.93% and 6.95%, respectively.
Financial institutions tapped the market to meet their funding requirements and to roll over papers that are set to mature in the coming days.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
Non-banking finance companies were the major issuers today, tapping the market for their credit disbursement, dealers said.
Domestic money markets are closed on Tuesday on account of Gurunanak Jayanti.
Despite a surge in issuances, rates on short-term debt papers were range bound because of firm demand from mutual funds, dealers said.
Mutual funds have seen continuous inflow into liquid funds, which are then deployed in short-term debt papers. They are also reinvesting the funds received from the maturity of short-term papers.
Rates on three-month CPs were quoted at 7.25-7.45%, while those on papers of manufacturing companies were quoted at 7.10-7.35%.
Rates on three-month certificates of deposit were quoted at 6.95-7.25%.
Issuances of certificates of deposits increased today as a few private banks tapped the market for its funding needs, dealers said.
So far today, CDs aggregating 30.00 bln rupees were issued, against 3.25 bln rupees on Friday. IndusInd Bank and IDFC First Bank raised 15.00 bln rupees each through papers at 6.70% and 7.14%, respectively.
Private lenders also tapped the market to roll over papers set to mature in the coming days.
Supply of fresh CDs by other banks were low as there was no immediate need for funds owing to surplus liquidity in the banking system.
Liquidity in the banking system is currently estimated to be in a surplus of over 858.40 bln rupees as against 939.66 bln rupees on Friday.
--Primary market
* Small Industries Development Bank of India, Tata Motors Finance, Aditya Birla Finance, Can Fin Homes and HDFC Securities raised funds through CPs.
--Secondary market
* Kotak Mahindra Bank's CD maturing on Feb 3 was dealt at a weighted average yield of 6.8501%
* Tata Capital Financial Services' CP maturing on Dec 8 was dealt two times at a weighted average yield of 6.6747%
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:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 6.80 | 9.05 | 3.60 | 4.00 |
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 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 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
