More Stories

Informist, Monday, Oct. 13, 2025

By Vaishali Tyagi

MUMBAI – Borrowing through the short-term debt market rose sharply on Monday due to big-ticket issuances by Reliance Jio, Hindalco Industries, and Punjab National Bank, dealers said. On Tuesday, commercial papers worth INR 78.5 billion were raised, sharply up from INR 1.50 billion raised on Friday, and certificates of deposits worth INR 28 billion were mobilised against none on Friday. 

Reliance Jio was the biggest CP issuer on Monday. The company raised INR 32 billion through CP maturing in mid-December at 5.85%. Hindalco and SIDBI were the other big CP issuers, raising INR 20 billion and INR 10 billion, respectively, through their papers maturing in three months. Tata Capital Housing raised INR 5 billion through a three-month CP at 6.02%, while ONGC Petro raised INR 4 billion through a CP maturing at the end of February at 6.33%. 

"Given that it's a truncated month, some companies are front-loading their borrowing. Issuances have risen, but the amounts aren't extraordinary," a dealer at a brokerage firm said. "After a recent lull in issuances, it might seem like a pickup, but this is a normal trend as corporates tap the market ahead of the festive season." 

Banks which have been on the sidelines for the past few days tapped the short-term debt market Monday. Punjab National Bank, which was the sole CD issuer, raised INR 28 billion through a one-month paper at 5.75%. Indicative rates for three-month CDs were 5.85-5.95%, unchanged from Friday. Yields on papers with six-month and one-year maturities also remained unchanged at 6.15–6.22% and 6.38–6.45%, respectively, dealers said. 

"Still, there were not many banks in the market as liquidity in the banking system is seen as comfortable," the dealer quoted above said. The banking system liquidity surplus, as measured by the RBI's net liquidity absorbed, fell to INR 1.44 trillion Friday from INR 1.56 trillion on Thursday. However, the liquidity surplus in the system was considered comfortable, given the absence of major scheduled outflows.

Rates on commercial papers issued by manufacturing companies were at 5.95-6.05%, unchanged from Friday. Similarly, papers of the same maturity from non-banking financial companies also remained unchanged at 6.65-6.75%. 

Dealers said market participants are awaiting the minutes of the Monetary Policy Committee meeting that ended on Oct. 1, which will be released Wednesday to get cues on the rate outlook. Traders said that the CPI data released during market hours had no impact on the short-term market. Data released during market hours showed that India's headline inflation fell to an over eight-year low of 1.54% in September, in line with expectations. 

--Primary market

* Axis Securities, Reliance Jio, SIDBI, Tata Capital Housing, Hindalco and ONGC Petro raised funds through CPs.

* Punjab National Bank raised funds through CDs.

Secondary market

* Karur Vysya Bank's CD maturing Thursday was traded once at a weighted average yield of 5.7604%.

* Bajaj Finance's CP maturing Tuesday was traded twice at a weighted average yield of 5.4289%.

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Saji George Titus

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. 2025. All rights reserved.