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Informist, Wednesday, Jul. 16, 2025

By Siddhi Chauhan and Vaishali Tyagi

MUMBAI – Borrowing through the short-term debt market jumped Wednesday on the back of big-ticket issuances by Reliance Jio and Indian Bank, dealers said. Issuances through certificates of deposit rose to INR 20 billion Wednesday from INR 2.5 billion Tuesday, while that through commercial paper rose to INR 49.70 billion from INR 11.00 billion Thursday. 

Reliance Jio alone raised INR 20 billion through paper maturing in three months at 5.85%, likely due to rollover papers worth INR 47.50 set to mature Wednesday and Thursday. National Bank for Agriculture and Rural Development also raised INR 11.7 billion through an eight-month paper at 6.05%.

"There is no different reason for issuer to come to the market, they are coming because of rollover requirements only," a dealer at a mid-sized brokerage firm said. "Today, IOC had requirements due to the same reason, but they couldn't issue a larger quantum due to elevated rates." According to data compiled by Informist, NABARD's CP worth INR 20 billion was set to mature Wednesday. Indian Oil Corporation's CP worth INR 10 billion is set to mature Thursday. Consequently, the company raised INR 2.5 billion through a near-three-month paper. On Tuesday, NABARD was the largest issuer of commercial papers, raising INR 9.5 billion through an eight-month paper at 6.05%. 

The indicative rates for three-month CP issued by manufacturing companies were similar to Tuesday's levels at 5.80-6.00%. Rates on the three-month paper issued by non-banking financial companies were also unchanged at 6.15-6.35% Wednesday.

Indian Bank was the largest issuer which raised INR 15 billion through paper maturing in three months at 5.77%, while Federal Bank raised INR 5 billion through a near-three-month paper at 5.64%. Federal Bank likely raised funds in order to rollover their upcoming maturity of INR 2 billion. 

The short-term debt rates for papers issued by banks were unchanged due to a lack of aggressive activity from banks. The rates for three-month papers were unchanged from Tuesday's level at 5.77-5.97%. "Most banks are not raising funds now because enough liquidity is there, and most banks don't have maturities this month as it is quarter start," a dealer at a private sector bank said. "The rates are, therefore, not moving much."

--Primary market

* Indian Oil, Reliance Jio, Godrej Industries, Godrej Properties, Tata Capital, HDFC Securities, Bajaj Housing Finance, National Bank for Agriculture and Rural Development, and Tata Capital Housing Finance raised funds through CPs.

* Indian Bank and Federal Bank raised funds through CDs.

--Secondary market

* HDFC Bank's CD maturing Thursday was traded seven times at a weighted average yield of 5.2933%.

* Reliance Jio Infocomm Ltd.'s CP maturing Thursday was traded three times at a weighted average yield of 5.2941%.

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

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