Cost of borrowing for companies, banks and non-banks through commercial papers (CP) and certificates of deposits (CD) has increased 15-25 basis points (bps) over the past month, data from Clearing Corporation of India (CCI) showed. One basis point is 1/100th of a percentage point. The increase in borrowing costs - particularly in the crowded three-month segment of borrowing - comes after the RBI on November 16 announced new regulatory measures for NBFC credit.
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Indian companies have been witnessing an improvement in credit profiles as low interest rates since 2020 lowered cost of funds and improved profitability. But that has changed since. In the past year, interest rates have soared and inflation has eaten into profit margins.
CP issuances by corporates surge 60% in November financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.