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Informist, Tuesday, Dec. 31, 2024

By Siddhi Chauhan and Kabir Sharma

MUMBAI – The last day of 2024 saw tepid fundraising in the short-term debt market after issuers met their requirements earlier in the month, dealers said. On Tuesday, no funds were raised via certificates of deposits as against INR 71 billion raised on Monday. Meanwhile, Poonawalla Fincorp was the sole issuer of commercial papers on Tuesday.

Issuances were also low due to rates being on the higher side. Earlier, on Monday, some banks had raised funds but with January value date. "Banks who wanted to raise funds have already tapped the market. If you see, many banks raised funds yesterday," a dealer at a brokerage fund said. "Yesterday, many banks issued funds with January value date because December value date rates were up." On Monday, Punjab National Bank and HDFC Bank raised INR 71 billion.

Dealers also said the government's month-end spending has begun to ease liquidity conditions, which should keep fundraising by banks in the remainder of this week in check.

--Primary market

* Poonawalla Fincorp raised funds through CPs.

* No funds were raised through CDs.

--Secondary market

* Indian Bank's CD maturing on Wednesday was dealt five at a weighted average yield of 7.2214%.
* National Bank for Agriculture and Rural Development Ltd's CP maturing on Wednesday was dealt eight times at a weighted average yield of 7.2645%.

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: 

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

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