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Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the improving liquidity outlook is expected to benefit commercial paper (CP) issuances over the coming months and reverse the decline seen in April 2024. 

According to the report titled ‘CP Maturity Tracker - June 2024: Improving Liquidity Outlook to Boost CP Issuances’, the decrease in both value and number of issuers was largely attributable to seasonality after a surge in activity which is typical of the March quarter, while the increase in market activity amid improving liquidity could aid issuers to raise higher value CPs in the upcoming months.

Meanwhile, corporates raised Rs 30,900 crore in May through commercial papers, higher than Rs 28,400 crore in April. Together, non-banking financial companies and housing finance companies issued commercial papers worth Rs 52,400 crore. The total number of issuers for whom commercial papers are maturing in the next three months is 205; of which the top 10 issuers account for Rs 1.2 trillion. The remaining 53% of the total aggregate amount is accounted by the balance commercial paper issuances.