Nearly Rs 1 lakh crore worth of commercial papers sold by non-banking finance companies (NBFCs) will see redemption this month.
Commercial paper or CPs are short-term debt with one to three months maturity.
Lakshmi Iyer, chief investment officer of debt and head of products at Kotak Mahindra AMC, spoke to CNBC-TV18 about the redemption and the liquidity situation across NBFCs.
“My sense is that the hue and cry that was made about November seems to be a little bit far-fetched and the number in terms of availability of funds are clearly indicating that,” she said.
Speaking about the fund raising situation across non-banking financial companies (NBFCs), Iyer said, “It is not restricted to AAA at all, even lower-rated entity may be even below AA-, A or A+ is also having access to capital market funding at least upto one year. My sense is beyond one year if they seek to access maybe three-year, five-year money, that we will have to wait a little. That only currently restricted to maybe AAA and AA+ segment.”