More Stories

Informist, Thursday, Feb. 6, 2025

By Kabir Sharma

MUMBAI – Issuances in the short-term debt market were little changed on Thursday as issuers only looked to raise funds to roll over maturing papers and abstained from fresh fund raising ahead of the Reserve Bank of India's monetary policy decision Friday, dealers said. The Monetary Policy Committee, which began its three-day meeting Wednesday, is widely expected to lower the repo rate by 25 basis points to 6.25% in what would be the first interest rate cut in nearly five years. Governor Sanjay Malhotra will announce the MPC's decision at 1000 IST Friday.

"There was demand for papers. CDs (certificates of deposit) or CPs (commercial papers), mutual funds were hungry for anything. But issuers are aware that rates will fall tomorrow, so they are only raising what they need to roll over," a trader at a brokerage firm said. Expectations of improved liquidity conditions also helped drag down borrowing costs on Thursday, with rates on three-month certificates of deposit down five basis points to 7.35-7.39%, while rates on three-month commercial papers issued by manufacturing companies fell by an even larger 10 bps to 7.40-7.50%.

Issuances of certificates of deposits on Thursday were around the previous day's levels, with INR 53.00 billion being raised compared to INR 50.00 billion Wednesday. HDFC Bank was the largest issuer, raising INR 15.00 billion via a three-month paper at 7.35%. Reliance Retail Ventures was the largest issuer of commercial papers as it raised INR 25.00 billion via a paper maturing in three months at 7.39%. A total of INR 38.25 billion was raised via CPs Thursday.

--Primary market

* Union Bank, Punjab National Bank, HDFC Bank, and Bank of India raised funds through CDs.

* Reliance Retail Ventures, Godrej Housing Finance, Can Fin Homes, Tata Capital, and ICICI Securities raised funds through CP.

--Secondary market

* Bank of Baroda's CD maturing on Friday was traded 10 times at a weighted average yield of 6.3627%.
* Reliance Retail Ventures Ltd.'s CP maturing on Friday was traded three times at a weighted average yield of 6.4139%.

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 Deepshikha Bhardwaj

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