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Informist, Monday, Aug. 18, 2025

By Vidhushi RajPurohit

MUMBAI – Issuances of commercial papers were lower on Monday because of low funding needs, dealers said. Companies and non-banking financial companies raised INR 26.50 billion through CP, down from INR 46 billion raised on Thursday. However, traders are of the view that CP issuances will likely increase in the upcoming weeks due to rollover needs.

"CP side activity was dull today, likely because there is no urgency right now for funds," a dealer at a brokerage firm said. "But there are maturities lined up, so you can expect more companies to come to market in the remaining weeks."

So far this month, CP issuances have amounted to INR 567.58 billion and the total amount of CP due for maturity is INR 1.19 trillion, according to data from Clearing Corp. of India collated by Informist. On Monday, Cholamandalam Investment and Finance was the largest CP issuer. The company raised INR 16 billion through two papers of different maturities. It raised INR 7.50 billion through a paper maturing in February at 6.70% and the balance through a paper maturing in May at 7.00%.

The indicative rates for three-month CPs issued by manufacturing companies were unchanged at 5.85-5.95%. The indicative rates for three-month certificates of deposit were also at the same level as Thursday at 5.80-5.85%.

Meanwhile, issuances of certificates of deposit surged on account of big-ticket issuances by Axis Bank and HDFC Bank. Total CD issuances jumped to INR 72 billion, from INR 20 billion Thursday. HDFC Bank was the top issuer, as it borrowed INR 40 billion through a three-month paper at 5.80%. Axis Bank also issued a three-month paper and borrowed INR 20 billion at 5.83%. Both private sector banks had already met their rollover needs for the month and they likely tapped the market to meet some asset-liability management needs, dealers said. Some dealers said the banks likely tapped the market ahead of the quarter-end when the rates are expected to rise due to high rollover needs. In September, total CD due for maturity currently stands at INR 363.40 billion, higher than INR 193.30 billion for August.

In the secondary market, banks were likely buying short-tenure paper maturing within three months on account of ample surplus liquidity, dealers said. The Reserve Bank of India had net absorbed INR 3.12 trillion from the banking system Sunday, data showed. Mutual funds, on the other hand, were active across tenures on both the buying and selling sides, they said.

--Primary market

* Cholamandalam Investment and Finance, Tata Communications, Julius Baer Capital, and ICICI Securities raised funds through CPs

* Bank of Baroda, Axis Bank, and HDFC Bank raised funds through CDs

--Secondary market

* Bank of Baroda's CD maturing Thursday was traded twice at a weighted average yield of 5.5749%

* ONGC Petro Additions' CP maturing Tuesday was traded once at a weighted average yield of 5.5123%

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 Ashish Shirke

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