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Informist, Thursday, Jul. 17, 2025

By Vidhushi RajPurohit

MUMBAI – Issuances of commercial papers surpassed INR 100 billion as companies tapped the market to roll over their papers set to mature in July, dealers said. However, the usual lull at the start of the quarter kept banks away from the borrowing side, they said. Rates in the short-term debt market remained unchanged Thursday on account of strong investment appetite from mutual funds, dealers said.

Total funds raised through commericial papers aggregate to INR 139.25 billion, up from with INR 49.70 billion raised Wednesday. Reliance Jio Infocomm was the largest issuer for the day, as it raised INR 60 billion through a three-month paper at 5.85%. The telecommunication company has INR 83.75 billion worth of total papers set to mature this month. 

Indian Oil Corp. Ltd. was the other big issuer, raising INR 37 billion through a paper mautring in September at 5.67%. The company has upcoming maturities amounting to INR 40 billion for July.

"There is mostly only those issuer which are coming to roll over their CPs. Jio also had skipped some of their roll over last month so it is now very active this month with issuances," a dealer at a mid-size brokerage firm said.

Meanwhile, issuances of certificate of deposits by banks were nil Thursday as there was no immediate need for funds, dealers said. Heavy fundraising in June and surplus funds in the banking system also limited issuances of CDs, they said. Fundraising through CDs in June rose 62% on month to touch INR 1.31 trillion which was a three-month high, according to data compiled by Informist.

This month CDs worth only INR 230.95 billion are due for maturity, sharply down from INR 1.31 trillion in the previous month. Morevoer, the systemic liqudity was also above INR 3 trillion which further limited banks need for fresh funding, dealers said. 

The indicative rates for three-month CP issued by manufacturing companies were similar to Wednesday'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% Thursday.

--Primary market

* Indian Oil Corp. Ltd., Reliance Jio Infocomm, Godrej Consumers, Bajaj Housing Finance, Mahindra & Mahindra Financial Services, Aditya Birla Capital Ltd., Poonawalla Fincorp, Ultratech Cements, Aditya Birla Capital Ltd. raised funds through CPs.

* No banks raised funds through CDs.

--Secondary market

* Punjab Naional Bank's CD maturing Friday was traded thrice at a weighted average yield of 5.3298%.

* Godrej Properties Ltd.'s CP maturing Friday was traded once at a weighted average yield of 5.4393%.

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 Akul Nishant Akhoury

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