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Informist, Monday, Jul. 21, 2025

By Siddhi Chauhan

MUMBAI – Borrowing through commercial papers rose Monday as issuers tapped the market to rollover their upcoming maturities, dealers said. No funds were raised through certificates of deposit for the third trading session as banks remained on the sidelines due to low funding requirements, they said.   

On Monday, CPs worth INR 20.75 billion were issued, up from INR 3.50 billion on Friday. "The requirement is rollover-based only. Issuers who have maturities due are coming to the market," a dealer at a brokerage firm said. "There are no other demands other than rollover needs."

National Bank for Agriculture and Rural Development was among the largest CP issuers, raising INR 5 billion through a September-end paper at 5.65%. Grasim Industries and Can Fin Homes also raised INR 5 billion each through three-month paper at 5.82% and 5.92% respectively. 

CPs worth INR 471.24 billion are set to mature in the remaining month, data from Clearing Corp. of India showed. Godrej Industries, which raised INR 2.25 billion through three-month papers at 6.00%, has maturity worth INR 4.5 billion in the coming days, data showed. On Monday, a paper worth INR 750 million from Godrej Industries matured.  

The CD market remained calm Monday, with most banks having fulfilled their funding requirements at the start of the month, dealers said. So far in July, banks have raised funds aggregating INR 155.0 billion through CD against the maturity of INR 165.04 billion, according to data compiled by Informist. 

Moreover, systemic liquidity was also above INR 3 trillion, which further limited banks' need for fresh funding, dealers said. As per data from Reserve Bank of India, net absorbed liquidity Sunday was INR 3.04 trillion, similar to INR 3.07 trillion Saturday.

On Monday, the indicative rates on the three-month paper issued by banks were unchanged from Friday's level at 5.75-5.80%. Meanwhile, rates on the three-month paper raised by manufacturing companies and non-banking financial companies were also unchanged at 5.82-6.02% and 6.15-6.35%, respectively. 

--Primary market

* NABARD, Grasim Industries, Can Fin Homes, Godrej Industries and Julius Baer Capital raised funds through CPs.

* No banks raised funds through CDs.

--Secondary market

* Punjab National Bank's CD maturing Thursday was traded once at a weighted average yield of 5.6200%.

* Tata Capital Housing Finance's CP maturing Tuesday was traded once at a weighted average yield of 5.5488%.

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 Saji George Titus

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