Issuances of commercial papers rose today because the deep interest rate cuts by the Reserve Bank of India last week and also the cut in the cash reserve ratio prompted banks and mutual funds to step up purchases, dealers said.
The biggest deal was ONGC Videsh’s CP issue today, arranged by Citibank. The company has already received investments close to Rs 4,000 crore for 1-year CPs at 8.15 per cent.
Four mutual funds invested in the CP issue. A senior company official said the issue will be open till Friday, but refrained from giving further details. Other CP issuances intraday include IDBI Home Finance’s Rs 50 crore of 4-month CPs at 9.49 per cent and UTV Software Communications’ Rs 15 crore of six-month CPs at 9.95 per cent.
