Short-Term Debt: Supply down as cos stay on sidelines

Informist, Friday, Jan 14, 2022


By Vishal Sangani


MUMBAI – Issuances of certificate of deposit and commercial papers fell today because banks and most companies remained on the sidelines as they were in no immediate need of funds, dealers said.


Funds raised by state-owned companies were also low because they have already rolled over papers set to mature in the next few days.


Bajaj Housing Finance was the lone issuer of CPs today, raising 5 bln rupees at 4.75% through papers maturing on October.


On Thursday, CPs worth 42.75 bln rupees were issued.


Participation was low because of a few rollovers in the primary market.


Rates on short-term debt papers were unchanged today, dealers said.


Rates on three-month CPs of manufacturing companies were quoted at 3.70-3.95%, while those on papers of non-bank finance companies were unchanged at 4.05-4.25%.


National Bank for Agriculture and Rural Development was the lone issuer of CDs today, raising 10 bln rupees at 4.62% through papers maturing in one year.


On Thursday, CDs aggregating 79.50 bln rupees were issued.


Banks also did not issue any certificate of deposit today as there is no immediate need for funds owing to surplus liquidity in the banking system.


Liquidity in the banking system is estimated to be in a surplus of over 6.67 trln rupees.


Rates on three-month CDs were quoted at 3.65-3.85%, in the secondary market.


–Secondary market

* Kotak Mahindra Bank's CD maturing on Jun 15 was dealt at a weighted average yield of 3.9500%

* LIC Housing Finance's CP maturing on Jul 7 was dealt two times at a weighted average yield of 4.3501%


Following are volumes at 1530 IST in the secondary market for short-term debt, in bln rupees, as detailed by the Clearing Corp of India's F-TRAC platform:


Certificates of deposit

Commercial papers






NOTE: Details of the deals have been received from market sources.




IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT


Edited by Arshad Hussain


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