More Stories

Informist, Wednesday, Jul. 23, 2025

By Vidhushi RajPurohit

MUMBAI – Issuances in the short-term debt market remained elevated, driven by big-ticket issuances from entities seeking to roll over their maturing papers for the month, dealers said. The rise in issuances was also due to issuers rushing to borrow the required quantum ahead of month-end when mutual funds, the major investors in short-term debt papers, will face redemption pressure, they said. 

The total quantum raised via commercial papers rose to INR 92.75 billion Wednesday, from INR 85.00 billion raised Tuesday. Small Industries Development Bank of India accounted for 65% of the total funds raised, with the non-banking financial entity raising INR 60 billion by issuing a three-month paper at 5.77%. In July, the company had maturities worth INR 50.50 billion.

"SIDBI would have some internal funding needs, because it also was active in the corporate bonds side," a dealer at a mid-size brokerage firm said. "Because of the high quantum, they got good rates also." The indicative rates for three-month CPs issued by manufacturing companies remained unchanged at 5.80-5.85% and for non-banking financial companies, the indicative rates were at 6.15-6.20%. 

Sundaram Finance was the other big issuer, raising INR 8 billion via a three-month paper at 6.08%. On Tuesday, National Bank for Agriculture and Rural Development was the largest CP issuer, raising INR 60 billion through a three-month paper at 5.80%. 

Meanwhile, certificate of deposit issuances fell to INR 15 billion, as dealers cited low roll-over needs and slower credit off-take at the start of the quarter as the reason. Only two banks tapped the CD market Wednesday. Bank of Baroda raised INR 10 billion via a nine-month paper at 6.15% and Indian Bank raised INR 5 billion through a three-month paper at 5.72%. 

The indicative rates on the three-month paper issued by banks were unchanged from Tuesday's level at 5.75-5.80%. Traders did not see any impact from the central bank's two-day variable rate repo auction on the borrowing rates. The RBI conducted a variable rate repo auction for INR 500 billion as the money market rates surged to hover around the RBI's Marginal Standing Facility rate of 5.75%. The auction saw bids aggregating to INR 719.02 billion, of which INR 500.01 billion were accepted. The central bank set the cut-off rate at 5.53%. 

"These operations are transient and there was no impact of it on CD rates. Plus, there are not many banks active right now in the issuances side, which is also keeping the rates around the same level," a dealer at a private sector bank said. "We got a signal that even for a short term, the RBI won't let the rates shoot up too high."

--Primary market

* SIDBI, Bajaj Finance, Godrej Industries, Tata Projects, Sundaram Finance, Poonawala Fincorp, Kotak Securities, ONGC Petro and Toyota Finance raised funds through CPs.

* Bank of Baroda and Indian Bank raised funds through CDs.

--Secondary market

* Canara Bank's CD maturing Thursday was traded once at a weighted average yield of 5.8409%.

* Mangalore Refinery and Petrochemicals' CP maturing Thursday was traded five times at a weighted average yield of 5.8345%.

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

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.