More Stories

Informist, Thursday, Aug. 21, 2025

 

By Vidhushi RajPurohit

 

MUMBAI – Funds raised through commercial papers rose Thursday on account of a big-ticket issuance by the National Bank for Agriculture and Rural Development. The non-banking lender raised INR 17 billion through a three-month paper at 5.80%. Dealers said the government-owned financial institution likely tapped the market to roll over papers maturing this month. Total INR 50 billion of CPs of the development body are due to mature in August and so far, excluding Thursday's issuance, it has raised INR 15 billion this month.

 

Total CP issuances aggregated INR 25.25 billion, up from INR 15.75 billion raised Wednesday. IGH Holdings tapped the market to borrow INR 4.00 billion through a three-month CP at 6.58%.

 

"Companies are there mostly to borrow against their maturities and banks have not been that active this month because their rollover needs were also quite low for the month," a dealer at a brokerage firm said.

 

Issuances of certificates of deposit declined to INR 27.50 billion, from INR 67.50 billion raised Wednesday. The top CD issuer was Bank of Baroda, which raised INR 17.50 billion at 6.25% through a paper maturing in May. Indian Overseas Bank raised INR 10 billion through a three-month CD at 5.88%. Traders expect CD issuances to pick up next month as credit disbursal is expected to grow near quarter-end.

 

Meanwhile, mutual funds were seen selling short-term papers in the secondary market to raise funds due to month-end redemption pressure, dealers said. Rates in the primary market are likely to rise in the upcoming week as investment appetite from fund houses subsides near the month-end, they said.

 

On Thursday, the indicative rates for three-month CPs issued by manufacturing companies remained unchanged from Wednesday at 5.85-5.95%. For CPs of non-banking financial companies, the rates were at 6.20-6.25%. The indicative rates for three-month CD were also at the same level as Wednesday's at 5.80-5.85%.

 

--Primary market

* IGH Holdings, NABARD, Kotak Securities, and Motilal Oswal Financial Services raised funds through CPs

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

 

--Secondary market

* Karur Vysya Bank's CD maturing Friday was traded once at a weighted average yield of 5.6949%

* Reliance Retail Ventures' CP maturing Friday was traded four times at a weighted average yield of 5.7296%

 

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
46.50	66.35	65.90	25.00

 

End

 

Edited by Ashish Shirke

 

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.