More Stories

Informist, Thursday, Aug. 14, 2025

 

By Vidhushi RajPurohit

 

MUMBAI – Issuances of commercial papers rose Thursday as companies and non-banking financial companies flocked to the short-term debt market to roll over their maturing papers for August, dealers said. Rates in the market remained elevated Thursday, after rising slightly on Wednesday, on account of higher demand from issuers, they said.  

 

Total CP issuances on Thursday amounted to INR 46 billion, higher than INR 28 billion raised on Wednesday. Most issuers who tapped the market had rollover requirements, dealers said. Aditya Birla Capital and Motilal Oswal Financial Services were the largest issuers Thursday, each raising INR 10 billion through three-month papers. 

 

Aditya Birla Capital issued the CP at 6.28%, while Motilal Oswal Financial Services raised the funds at 6.55%. For Aditya Birla Capital, the total quantum of papers due for maturity in August stands at INR 20.50 billion and for Motilal Oswal Financial Services, the amount is INR 25.25 billion. The other major issuer was ICICI Securities, which raised INR 8 billion through a three-month CP at 6.33%. The company has INR 61.75 billion worth of CPs due for maturity in August. 

 

The indicative rates for three-month CPs issued by manufacturing companies were 5.85-5.95%. For non-banking financial institutions, the rates for three-month papers were 6.25-6.28%. The indicative rates for three-month CDs were 5.80-5.85%. 

 

Traders expect the rates to inch higher in September on account of quarter-end funding needs, dealers said. Meanwhile, the credit rating upgrade of India is not seen impacting borrowing rates in the short-term debt market immediately, they said. S&P Global Ratings Thursday upgraded India's long-term unsolicited sovereign credit rating to 'BBB' from 'BBB-', citing the Indian economy's resilience and sustained fiscal consolidation.

 

"The impact on rates will be gradual for money market. First, the yields on gsec and corporate bonds will move and then it will trickle down to CPs and CD," a dealer at a private sector bank said. Prices of government bonds surged immediately post the upgrade. The yield on 10-year benchmark, 6.33%, 2035 gilt fell by 8 basis points Thursday, the steepest fall in a day since Apr. 2. 

 

On the certificates of deposit front, two banks tapped the market to raise INR 20 billion, slightly lower than INR 25 billion raised Wednesday. Indian Overseas Bank and Indian Bank were the only issuers, each raising INR 10 billion through three-month CDs. Indian Overseas Bank raised the funds at 5.89% and Indian Bank at 5.80%. The banks are likely to have tapped the market for their asset-liability management needs, dealers said.

 

Most banks continued to be on the sidelines as surplus liquidity in the banking system remains comfortable amid low credit disbursal needs for August, they said. As per latest data from the Reserve Bank of India, the central bank net absorbed INR 2.90 trillion from the banking system on Wednesday. 

 

--Primary market

* Aditya Birla Capital, Aditya Birla Money, HDB Finance, Tata Capital Housing Finance, Godrej Industries, ICICI Securities, Kotak Securities, Axis Securities, Bajaj Finance Securities and Motilal Oswal Financial Services raised funds through CPs

* Bank of Baroda and Indian Bank raised funds through CDs

 

--Secondary market

* Punjab National Bank's CD maturing Monday was traded once at a weighted average yield of 5.4417%

* Aditya Birla Capital's CP maturing Monday was traded four times at a weighted average yield of 5.4783%

 

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:

 

Certificates of deposit		Commercial paper
Thursday	Wednesday	Thursday	Wednesday
45.90	47.60	21.70	77.55

 

End

 

Edited by Avishek Dutta

 

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.