Short-Term Debt
Issuances surge on rollover needs; SIDBI raises INR 20 bln
This story was originally published at 20:31 IST on 3 November 2025
Register to read our real-time news.Informist, Monday, Nov. 3, 2025
By Kabir Sharma
MUMBAI – Issuances in the short-term debt market surged on Monday mainly due to rollover demand, dealers said. "As there are a lot of maturities at the beginning of the month, people are raising money to roll it over," a dealer at a mid-sized brokerage firm said. Banks also borrowed funds to meet funding requirements amid big-ticket disbursements due, dealers said.
The rise in issuance was despite an easing in liquidity conditions. The liquidity in the banking system has returned to a comfortable surplus after largely being in deficit towards the end of October. The RBI net absorbed – a proxy for liquidity surplus – INR 1.11 trillion Sunday. Liquidity surplus in the system rose above INR 1 trillion due to the government's month-end inflows, dealers said. Additionally, a cut in the cash reserve ratio to 3.25% of net demand and time liabilities of banks came into effect on Saturday, which infused around INR 700 billion of liquidity into the system.
In the commercial papers segment, companies raised INR 44 billion on Monday higher than INR 15.75 billion on Friday. National Bank for Agriculture and Rural Development was the largest issuer in the segment, raising INR 13 billion via a three-month paper at 6.01%. Aditya Birla Housing was the other large issuer raising INR 9.25 billion via a three-month paper at 6.07%.
Dealers said due to requirement-based participation, rates in the three-month papers issued by manufacturing remained unchanged at 6.03-6.13% from Friday. Rates on similar maturity papers issued by non-banking financial companies were 6.66-6.77%, broadly unchanged from Friday.
In the certificates of deposit segment, banks and financial institutions raised INR 32 billion on Monday, as against INR 21 billion on Friday. Small Industries Development Bank of India was the largest issuer, raising INR 20 billion via a one-year paper at 6.49%. SIDBI was also the sole issuer on Friday. Bank of Baroda raised INR 7 billion via a three-month paper at 5.98% on Monday. Indicative rates for three-month CDs were 6.00-6.10%, unchanged from Friday. Yields on papers with six-month and one-year maturities also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.
-Primary market
* Kotak Mahindra Prime, Kotak Mahindra Investments, Kotak Securities, NABARD, Aditya Birla Housing, Godrej Industries, Aditya Birla Money, Axis Finance, Bajaj Finance, Julius Baer Capital, and SBI Capital Securities raised funds through CPs.
* SIDBI, Karur Vysya Bank, and Bank of Baroda raised funds through CDs.
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.
To read more please subscribe
Share this Story:
