Informist, Friday, Oct 13, 2023

By Sony

MUMBAI - Fundraising through commercial papers fell as non-banking finance companies stayed on the sidelines after borrowing heavily on Thursday, dealers said.

So far, companies and financial institutions raised 42.85 bln rupees through CPs, as against 49 bln rupees on Thursday.    

REC was the major issuer of CPs today, raising 29.85 bln rupees through papers maturing on Mar 1 at 7.24%. 

Rates on three-month commercial papers issued by non-banking financial companies were flat at 7.55-7.75%. Rates on papers of similar maturity issued by manufacturing companies were also flat at 7.20-7.40%.

Rates on three-month certificates of deposit were flat at 7.15-7.35%, dealers said. None of the banks raised funds through CDs today.

Banks stayed on the sidelines as liquidity improved slightly today, dealers said. Liquidity in the banking system is currently estimated to be in a deficit of 289.32 bln rupees, against 504.87 bln rupees on Thursday.

On Thursday, Canara Bank was the sole issuer of CDs, raising 11.50 bln rupees through papers maturing on Jan 15 at 7.18%. 

--Primary market

* REC, Bajaj Finance, and Aditya Birla Housing Finance raised funds through CPs.

--Secondary market
* Indian Bank's CD maturing on Nov 24 was dealt twice at a weighted average yield of 7.0296%.
* L&T Metro Rail's CP maturing on Oct 17 was dealt thrice at a weighted average yield of 7.0636%.

At 1700 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:

NOTE: Details of the deals have been received from market sources.

End

Edited by Avishek Dutta

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