Wednesday, Jan 20, 2021

By Vishal Sangani

MUMBAI - The amount of money raised through commercial papers fell today as there was no big-ticket issuance like Tuesday's issues by National Bank for Agriculture and Rural Development, Aditya Birla Finance and Reliance Industries

Ltd.

So far today, CPs aggregating 15.00 bln rupees were issued, against 97.25 bln rupees on Tuesday. NTPC was the biggest issuer raising 10.00 bln rupees through three-month papers at 3.53%.

On Tuesday, NABARD and Reliance Industries had raised a total of 60 bln rupees through CPs. Aditya Birla Finance had raised 30 bln rupees through ultra short-term debt papers for requirements related to initial public offering of Indian Railway Finance Corp.

Issuance of CPs by manufacturing companies was subdued as they have already borrowed funds and have little requirement now. Participation was also subdued because of the few rollovers in the primary market.

Demand from fund houses was low as they have parked sizeable amount of funds in the ultra short-term CPs of non-banking finance companies.

Rates on short-term debt papers remained unchanged due to lower issuances, dealers said.

Rates on commercial papers of non-bank finance companies maturing in March were quoted at 3.60-3.80%, while those of manufacturing companies, maturing in March, were quoted at 3.40-3.55%.

On the other hand, there was no issuance of certificates of deposits by banks today. The issuance of CDs has been particularly scarce as there is huge liquidity surplus in the banking system. With the growth in bank deposits consistently outpacing credit growth, banks have had little reason to tap the short-term debt market.

Liquidity in the banking system is estimated to be in a surplus of over 5.34 trln rupees.

Rates on three-month CDs were quoted at 3.25-3.40% in the secondary market.

--Primary market

* NTPC and Aditya Birla Finance raised funds through CPs.

--Secondary market

* Axis Bank's CD maturing on Feb 5 was dealt two times at a weighted average yield of 3.3302%

* EXIM Import Bank of India's CP maturing on Jun 29 was dealt at a weighted average yield of 3.6000%

Informist, Tuesday, Oct 12, 2021

By Vishal Sangani

MUMBAI – The volume of funds raised through commercial papers plunged today in the absence of big-ticket issuances, dealers said.

On Monday, National Fertilizers, Reliance Industries and Reliance Jio Infocomm were the major issuers.

Participation was low due to few rollovers in the primary market.

Some companies also remained on the sideline as they weren't in immediate need of funds. The funds raised by state-owned companies were also low because they have already rolled over papers set to mature in the next few days.

So far today, CPs aggregating 8.50 bln rupees were issued, as against 68.25 bln rupees sold on Monday. TVS Credit Services was the major issuer, raising 5.00 bln rupees through papers maturing in three-month at 4.03%.

Rates on short term debt papers remained in a narrow range today due to lower issuances.

Rates on three-month CPs of manufacturing companies were quoted at 3.50-3.70%, and those on papers of non-bank finance companies were quoted at 3.70-3.95%.

Rates on CPs had come down after the Reserve Bank of India's Monetary Policy Committee on Friday did not take any significant steps towards normalisation of excess liquidity in the financial system and the central bank did not hike its reverse repo rate as was feared by some market participants, dealers said

Moreover, the market expected the RBI to announce longer-maturity variable rate reverse repo operations of up to 56 days from the current cap of 14 days, which did not materialise.

Instead, the RBI ramped up of the quantum under the 14-day variable rate reverse repo auctions to 6 trln rupees by Dec 3 in increments of 500 bln rupees every fortnight

No certificate of deposit was issued by banks today. Issuance of CDs has been particularly scarce as there is a liquidity surplus in the banking system. With growth in bank deposits consistently outpacing credit growth, banks have had little reason to tap the short-term debt market.

Liquidity in the banking system is estimated to be in a surplus of over 7.63 trln rupees.

Loan growth remained muted due to lack of demand for big-ticket loans from corporates and as banks remained cautious in anticipation of rising asset quality stress due to the COVID-19 pandemic.

Rates on three-month CDs were quoted at 3.40-3.55%, in the secondary market.

--Primary market

* TVS Credit Services and Sundaram Home Finance raised funds through CPs.

--Secondary market

* AU Small Finance Bank's CD maturing on Mar 11 was dealt at a weighted average yield of 4.0300%

* Tata Steel's CP maturing on Mar 7 was dealt at a weighted average yield of 3.6599%

Following are volumes at 1530 IST in the secondary market for short-term debt, in bln rupees, as detailed by the Clearing Corp of India's F-TRAC platform:

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

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