Corporate Paper issuances touch 5-yr high at Rs 2.53 lakh crore in June

Corporate commercial paper issuances surged to Rs 2.53 lakh crore in June, the highest in nearly five years and up 84.6 percent month-on-month from Rs 1.37 lakh crore in May. The rise was driven by attractive CP pricing versus bank loans, seasonal working capital needs, and debt refinancing, supported by the RBI infusing over Rs 6 lakh crore of transient liquidity via VRR auctions. Banking system liquidity remained in surplus of about Rs 1.85 lakh crore as on July 5, reinforcing a favourable debt funding environment.