Green shoots of liquidity for NBFCs, HFCs in commercial paper market

Rating agency CRISIL in a statement said there had been some change in market sentiment over the past two weeks with gradual easing in funding access for non-banks

The worst may be over for non-banking finance companies (NBFCs) and housing finance companies (HFCs) as far as raising funds from the commercial paper (CP) market is concerned. 

After the liquidity squeeze following the default by the IL&FS group in September, there are early signs of a recovery in the CP market with non-bank lenders (NBFCs and HFCs) raising Rs 300 billion in October. 

Almost half of this, or Rs 150 billion, was raised in the last week of October, albeit at a higher cost, according to market sources.

The Reserve Bank of India (RBI) data on CP issuance by