Informist, Tuesday, Feb 6, 2024

By Asmita Patil

MUMBAI – Fundraising through commercial papers fell today due to lack of big-ticket issuances, dealers said. So far today, CPs aggregating 7.25 bln rupees were issued against 34 bln rupees on Monday. Of the total funds raised Monday, Export-Import Bank of India raised 20 bln rupees through CPs maturing in three months at 7.75%.

Money market participants remain watchful of liquidity in the banking system. "Government's capex is expected to pick up which will lead to some easing in liquidity, but the RBI (Reserve Bank of India) will try to keep a rein on liquidity," a dealer with a mid-sized brokerage firm said.

The RBI's Monetary Policy Committee will announce its monetary policy decision on Thursday. Comments of RBI Governor Shaktikanta Das on liquidity will be heard keenly, dealers said.

At the end of Monday, liquidity deficit in the banking system was 1.22 trln rupees, as against 1.10 trln rupees on Sunday, according to data from the RBI.

Lack of major issuances kept rates on short-term debt instruments flat today, dealers said. Rates on three-month CPs issued by non-banking finance companies were flat at 8.45-8.63%. Rates on papers of similar maturity issued by manufacturing companies were also steady at 7.85-8.05%.

Rates on three-month certificates of deposit were flat at 7.74-7.94%. Canara Bank was the lone issuer of CDs, raising 10 bln rupees through papers maturing in three months at 7.80%.

--Primary market

* Godrej Industries and Kotak Securities raised funds through CPs

* Canara Bank raised funds through CDs

--Secondary market

* Bank of Baroda's CD maturing on Feb 21 was dealt twice at a weighted average yield of 7.2392%

* National Bank for Agriculture and Rural Development's CP maturing on Apr 30 was dealt four times at a weighted average yield of 7.8708%

At 1700 IST, the following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India's F-TRAC platform:

End

Edited by Ashish Shirke

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