More Stories

Informist, Monday, Jan. 20, 2025

By Kabir Sharma

MUMBAI – MUMBAI – Issuances of commercial papers picked up on Monday to INR 29.75 billion from no issuance Friday, while funds raised through certificates of deposit slumped to INR 8.00 billion from INR 37.50 billion. Elevated borrowing rates owing to persisting liquidity deficit conditions meant banks were on the sidelines on Monday, dealers said. Last week, INR 210.00 billion was raised through CDs.

"The increase in the rates that we see in the quarter-end has not reduced till now," a dealer at a private bank said. "So only those banks which have some urgent needs for funds are on the borrowing side."

Rates on three-month CPs issued by non-banking finance companies were up 5 basis points at 7.90-7.95% from Friday's level, while three-month CPs issued by manufacturing companies were unchanged at 7.55-7.60%. Rates on three-month CDs were down by 5 bps at 7.45-7.50%.

Dealers said further clarity is awaited on the direction of rates as well as measures the Reserve Bank of India might take to infuse durable liquidity into the banking system. On Sunday, the net liquidity injected by the RBI--a proxy for systemic liquidity conditions--was INR 1.94 trillion. On Wednesday, the central bank said it will conduct variable rate repo auctions every day until further notice. Speculation is also rife that the RBI may cut the cash reserve ratio again next month.

In the primary segment on Monday, Punjab & Sind Bank was the sole issuer of CDs, raising INR 8.00 billion at a coupon rate of 7.74% through a one-year paper. Tata Motors Finance was the largest issuer of CPs, raising INR 7.50 billion through a paper maturing in three-months at 7.95%. Apart from non-bank finance companies, Birla Group Holding was the largest issuer, raising INR 5.75 billion at 8.31% through a one-year paper.

--Primary market

* Aditya Birla Money, ICICI Home Finance, Tata Motors Finance, HDFC Securities, Poonawala Fincorp, Motilal Oswal Financial Services, Tata Projects, Pilani Investments, Birla Group Holding, and IGH Holding raised funds through CPs.

* Punjab & Sind Bank raised funds through CD.

--Secondary market

* Union Bank of India's CD maturing on Friday was traded thrice at a weighted average yield of 7.0051%.
* PNB Housing Finance's CP maturing on Wednesday was traded once at 7.3942%.

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

With inputs from Vidhushi Rajpurohit

Edited by Akul Nishant Akhoury

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.