Informist, Wednesday, Nov 23, 2022
By Vishal Sangani
MUMBAI – Issuances of commercial papers were dominated by non-banking financial companies in the short-term debt market today as they tapped the market to meet their funding requirements and also to roll over papers that are set to mature in the coming days, dealers said.
A large issuance by National Bank for Agriculture and Rural Development also led to a spike in funds raised through CPs today.
So far today, CPs aggregating 72.75 bln rupees have been issued, against 55.00 bln rupees on Tuesday. NABARD raised 32 bln rupees through papers maturing on Jan 31 at 6.86%.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
While, CPs issuances by manufacturing companies were lower as they stayed on the sidelines due to low requirement for funds and also a few companies turned to banks for loans for their funding needs, dealers said.
Rates on non-banking finance companies CPs rose because of the surge in issuances and also as banking system liquidity is in deficit, dealers said.
Rates on three-month CPs issued by non-banking finance companies rose to 7.25-7.45% as against 7.10-7.30% on Tuesday, while rates on papers of manufacturing companies were flat at 6.95-7.15% due to lower issuances.
Liquidity in the banking system is currently estimated to be in a deficit of 223.88 bln rupees as against 144.17 bln rupees on Tuesday. The liquidity deficit widened due to outflows on account of goods and service tax payments.
Meanwhile, Punjab National Bank was the lone issuer of certificates of deposit today, raising 28.75 bln rupees in total at 7.00% and 6.95% through papers maturing in three months and on Jan 25. The state-owned lender tapped the market for its funding needs and also due to strong growth in credit, dealers said.
On Tuesday, CDs worth 26.50 bln rupees were issued.
Rates on three-month CDs were quoted at 6.85-7.10%.
--Primary market
* Birla Group Holdings, Housing Development Finance Corp, Hero Fincorp, HDFC Securities, Kotak Securities, National Bank for Agriculture and Rural Development, Tata Capital Financial Services, Aditya Birla Finance and ICICI Securities raised funds through CPs.
--Secondary market
* Canara Bank's CD maturing on Jan 5 was dealt three times at a weighted average yield of 6.7776%
* National Bank for Agriculture and Rural Development's CP maturing on Dec 15 was dealt three times at a weighted average yield of 6.3503%
At 1530 IST, 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:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 15.40 | 9.00 | 10.55 | 6.50 |
NOTE: Details of the deals have been received from market sources.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Arshad Hussain
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. 2022. All rights reserved.
Informist, Wednesday, Nov 23, 2022
By Vishal Sangani
MUMBAI – Issuances of commercial papers were dominated by non-banking financial companies in the short-term debt market today as they tapped the market to meet their funding requirements and also to roll over papers that are set to mature in the coming days, dealers said.
A large issuance by National Bank for Agriculture and Rural Development also led to a spike in funds raised through CPs today.
So far today, CPs aggregating 72.75 bln rupees have been issued, against 55.00 bln rupees on Tuesday. NABARD raised 32 bln rupees through papers maturing on Jan 31 at 6.86%.
The supply of papers by big-ticket issuers was readily absorbed because of their low risk profile.
While, CPs issuances by manufacturing companies were lower as they stayed on the sidelines due to low requirement for funds and also a few companies turned to banks for loans for their funding needs, dealers said.
Rates on non-banking finance companies CPs rose because of the surge in issuances and also as banking system liquidity is in deficit, dealers said.
Rates on three-month CPs issued by non-banking finance companies rose to 7.25-7.45% as against 7.10-7.30% on Tuesday, while rates on papers of manufacturing companies were flat at 6.95-7.15% due to lower issuances.
Liquidity in the banking system is currently estimated to be in a deficit of 223.88 bln rupees as against 144.17 bln rupees on Tuesday. The liquidity deficit widened due to outflows on account of goods and service tax payments.
Meanwhile, Punjab National Bank was the lone issuer of certificates of deposit today, raising 28.75 bln rupees in total at 7.00% and 6.95% through papers maturing in three months and on Jan 25. The state-owned lender tapped the market for its funding needs and also due to strong growth in credit, dealers said.
On Tuesday, CDs worth 26.50 bln rupees were issued.
Rates on three-month CDs were quoted at 6.85-7.10%.
--Primary market
* Birla Group Holdings, Housing Development Finance Corp, Hero Fincorp, HDFC Securities, Kotak Securities, National Bank for Agriculture and Rural Development, Tata Capital Financial Services, Aditya Birla Finance and ICICI Securities raised funds through CPs.
--Secondary market
* Canara Bank's CD maturing on Jan 5 was dealt three times at a weighted average yield of 6.7776%
* National Bank for Agriculture and Rural Development's CP maturing on Dec 15 was dealt three times at a weighted average yield of 6.3503%
At 1530 IST, 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:
Certificates of deposit | Commercial papers | ||
Today | Previous | Today | Previous |
| 15.40 | 9.00 | 10.55 | 6.50 |
NOTE: Details of the deals have been received from market sources.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Arshad Hussain
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. 2022. All rights reserved.
