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Informist, Tuesday, Jul. 22, 2025

By Siddhi Chauhan

MUMBAI – Borrowing through short-term debt market rose sharply Tuesday due to big ticket issuances by National Bank for Agriculture and Rural Development and HDFC Bank, dealers said. On Tuesday, commercial papers worth INR 85.00 billion were raised, sharply up from INR 20.75 billion while certificates of deposits worth INR 57.50 billion were raised against none Monday. 

NABARD was the largest CP issuer raising INR 60 billion through a three-month paper at 5.80%. "They are frequent issuer in short-term debt market. They are also coming in the corporate bond market in a few days," a dealer at a state-owned bank said. "Other than NABARD, rest of the issuances were rollover based only."

Other CP issuers like HDFC Securities, Tata Capital Housing, ICICI Securities and others tapped the market ahead of the their upcoming CP maturity, dealers said. CPs worth INR 411.10 billion are set to mature in the remaining month, data from Clearing Corp. of India showed.

On Tuesday, HDFC Securities raised INR 6 billion through a 3-month paper at 6.29%, against the maturity of INR 10.75 billion in the coming days. Meanwhile, Tata Capital Housing Finance raised INR 5 billion through a paper maturing in three months at 5.86%, against the maturity of INR 3 billion Tuesday and INR 2 billion Wednesday. ICICI Securities raised INR 3.50 billion through a paper maturing in three months at 6.28% against the maturity of INR 8 billion. 

On Monday, 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%.

Banks which have been on the sidelines for the past three days tapped the short-term debt market Tuesday. HDFC Bank which was the largest CD issuer raised INR 45 billion through a three-month paper at 5.77% ahead of its CD maturity, dealers said. Indian Bank also raised INR 12.50 billion through a three-month paper at 5.75%.  

"Banks were not raising funds because they were not able to get their desired levels. They raised today (Tuesday) because they had to come to the market because of maturity," a dealer at a state-owned bank said. "There was some credit offtake also."

On Tuesday, the indicative rates on the three-month paper issued by banks were unchanged from Monday'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, Tata Capital Housing Finance, HDFC Securities, Aditya Birla Housing, Bajaj Finance Securities and Aditya Birla Money raised funds through CPs.

* HDFC Bank and Indian Bank raised funds through CDs.

--Secondary market

* Bank of Baroda's CD maturing Aug. 4 was traded once at a weighted average yield of 5.6802%.

* Bharti Airtel Ltd.'s CP maturing Wednesday was traded twice at a weighted average yield of 5.8409%.

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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