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Informist, Friday, Nov. 14, 2025

 

By Vaishali Tyagi

 

NEW DELHI – Issuances in the short-term debt market fell Friday on low funding requirements as companies had already met their requirements during the week and due to comfortable liquidity in the banking system, dealers said. Commercial paper issuances fell to INR 20.25 billion from INR 61.00 billion on Thursday, while there were no certificates of deposit issued Friday, compared with INR 15 billion raised on Thursday.

 

HDB Financial Services was the largest borrower in the CP market, raising INR 10.0 billion through paper maturing at the end of December at 6.35%. L&T Finance raised INR 7 billion through a three-month paper at 6.50%. Other issues included Aseem Infrastructure, which raised INR 2 billion via a 4-month paper maturing at 6.80%, and Godrej Properties, which raised INR 1.25 billion through a 3-month CP at 6.14%.

 

"Now, very few corporates and banks are tapping the market due to ample liquidity and people having enough cash to meet their needs," a dealer said. "Earlier this week, there was ample borrowing, but it has slowed down now. I think those with had rollovers or maturities have already met their requirements."

 

Dealers said indicative rates on CP remained unchanged Friday as demand from issuers was easily met by mutual funds, dealers said. Rates on three-month papers issued by manufacturing companies remained steady at 6.03-6.13%. Rates on papers of similar maturity issued by non-banking finance companies were at 6.65-6.75%, also broadly unchanged from Thursday. 

 

Ample liquidity surplus and low funding needs kept banks from tapping the certificates of deposit market on Friday. Banks stayed on the sidelines after fulfilling their rollover requirements, dealers said. The central bank's net absorption from the banking system – a proxy for liquidity surplus – was INR 2.40 trillion Thursday, up from INR 2.10 trillion Wednesday. Traders speculated that some government expenditure had come in, boosting systemic liquidity. 

 

Dealers said indicative rates on CDs remained largely unchanged Friday. Indicative rates on three-month CDs were 6.00-6.08% on Friday compared with 5.99-6.07% from Thursday. Yields on six-month and one-year CDs also remained unchanged at 6.20–6.25% and 6.42–6.47%, respectively.

 

--Primary market

* HDB Financial Services, Godrej Properties, L&T Finance, Aseem Infrastructue raised funds through CPs

* No bank raised funds through CDs

 

--Secondary market

* Bank of Baroda's CD maturing on Monday was traded five times at a weighted average yield of 5.4476%

* Export-Import Bank of India CP maturing Monday was traded six times at a weighted average yield of 5.5504%

 

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
Friday	Thursday	Friday	Thursday
75.90	160.05	67.40	59.65

 

 

End

 

Edited by Saji George Titus

 

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