India commercial paper market hits ₹6.53L/cr after RBI rate cut
Business
India's commercial paper market just hit ₹6.53 lakh crore, up 24% from last year, thanks to the RBI's rate cut and extra funds flowing in from FCNR-B deposits after the RBI opened its concessional swap window in June.
Issuance spiked in September, and big names like NTPC Ltd. were able to borrow at much lower rates (as low as 5.60%), while companies with weaker ratings paid closer to 12%.
Non-financial firms' net new borrowing ₹7,948cr
Even though the numbers look huge, much of this growth is about companies rolling over old debt rather than getting new money to spend.
Net new borrowing by non-financial firms was just ₹7,948 crore for the year, so it's more about keeping things running smoothly than fueling big expansions right now.