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Informist, Thursday, Mar. 20, 2025

By Siddhi Chauhan

MUMBAI - Fundraising through commercial papers rose significantly on Thursday on the back of big-ticket issuances by Power Finance Corp., which alone raised INR 50.00 billion out of the total of INR 60.00 billion. The public sector lender raised funds through a three-month CP and another maturing in December at cut-off rates of 7.53% and 7.55%, respectively.

Other than Power Finance Corp., Tata Motors Finance Ltd raised INR 5.00 billion through a one-year paper at 7.83%. On Wednesday, CPs worth INR 12.00 billion were issued. Meanwhile, issuances through certificates of deposits slipped slightly on Thursday to INR 40.00 billion from INR 45.00 billion.

According to traders, if not for Power Finance Corp's big issue, the CP segment would have been dull on Thursday as most companies had already met their needs earlier in the month.

The action was similar in the CD segment. "Almost every bank has met 90% of their rollover demand. From now till the starting of April, it is unlikely that we will see heavy issuances," a dealer at a state-owned bank said. "Only those who are yet to fulfill their rollover demand will come with an issuance."

National Bank for Agriculture and Rural Development was the largest issuer of CDs on Thursday as it raised INR 25.00 billion, while IndusInd Bank continued to mop up funds, borrowing INR 10.00 billion through a paper maturing in September at 7.90%. So far this week, the embattled private sector bank has raised nearly INR 150 billion through CDs.

Rates on three-month CDs remained unchanged at 7.55-7.65% on Thursday. Rates on three-month CPs of non-banking finance companies were also unchanged from the previous day at 7.82-8.03%. Rates on CPs issued by manufacturing companies were at 7.65-7.85%.

--Primary market

* National Bank for Agriculture and Rural Development, Jammu & Kashmir Bank, and IndusInd Bank raised funds via CDs.

* Hero Fincorp, Power Finance Corp., Tata Motors Finance, Kotak Securities, and Bajaj Finance raised funds via CPs.

--Secondary market

* Indian Bank's CD maturing on Friday was traded four times at a weighted average yield of 6.5128%.

* ICICI Securities's CP maturing on Friday was traded five times at a weighted average yield of 6.5009%.

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:

Edited by Vandana Hingorani

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