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Informist, Monday, Jul. 14, 2025

Siddhi Chauhan

MUMBAI – Fundraising through short-term debt papers rose Monday on account of big-ticket issuances by Small Industries Development Bank of India and Indian Oil Corp., dealers said. A dip in borrowing rates from the previous day attracted investors to the short-term debt market, they said.

"SIDBI has raised a March maturity paper; generally at that time one would have to pay interest for quarter crossing," a dealer at a state-owned bank said. "They would have had some liquidity management requirements for up to one-year." SIDBI raised INR 35 billion through eight-month paper at 6.06%.

Total fundraising through CP was INR 133.5 billion, significantly higher from INR 47.00 billion Friday. The rise in the quantum was largely driven by the issuance from SIDBI. Indian Oil Corp. was the other big issuer, raising INR 30 billion through September end maturity paper at 5.64%. Other major issuers included Tata Capital and Bajaj Finance.

On the contrary, there was a lull in CD issuances with just one issuer tapping the short-term debt market. Indian Bank raised INR 10 billion through the issuance of paper maturing in 11 months at 6.18%. On Friday, there was no CD issuance. Major banks remained on sidelines due to comfortable liquidity conditions. On Sunday, the RBI net absorbed INR 2.94 trillion, slightly higher than the INR 2.90 trillion Saturday. 

The indicative rates for three-month CP issued by manufacturing companies fell to 5.80-6.00%, from 5.85-6.05% Friday. For CD, the rates for three-month papers were at 5.77-5.97%, down from 5.80-6.00% Friday. 

--Primary market

*Small Industries Development Bank of India, Bajaj Finance Ltd., Indian Oil Corp., Shree Cement, Tata Capital, Godrej Industries, Axis Securities, HDFC Securities, Birla Group Holding, Pilani Investments, Kotak Securities, Kotak Mahindra Prime, Kotak Mahindra Investments raised funds through CPs.

*Indian Bank raised funds through CD.

--Secondary market

* Axis Bank's CD maturing Tuesday was traded nine times at a weighted average yield of 5.2943%.

* Power Finance Corp. Ltd. CP maturing Tuesday was traded six times at a weighted average yield of 5.2568%.

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:

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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