NBFCs commercial paper (CP)​ issuances surge in March 2026, reflecting strong demand for short-term funding amid year-end liquidity requirements. The surge highlights NBFCs’ continued reliance on money markets to meet operational and balance sheet needs.

Key Highlights

• NBFCs dominate March CP issuances, raising ₹70,300 crore to meet year-end liquidity and funding needs.
• Corporate CP issuances decline sharply as companies adopt cautious borrowing strategies amid rising interest rates.

According to recent data, NBFC CP issuances rose sharply to Rs 70,300 crore in March 2026, compared to Rs 45,500 crore in February, marking a significant month-on-month increase. In contrast, corporate CP issuances declined to Rs 26,600 crore from Rs 40,700 crore, indicating a cautious approach by corporates due to higher borrowing costs and sufficient internal liquidity.

The rise in NBFC borrowing is largely attributed to financial year-end funding requirements, a period when companies typically increase short-term borrowings to manage obligations and maintain liquidity buffers. Despite elevated yields, NBFCs continued to actively tap the CP market to meet these needs.

Also Read: NBFCs Gain Consumer Loan Share Over Private Banks; RBI Curbs NBFC Norm

Experts suggest that this trend reflects a broader divergence in funding strategies, where NBFCs remain dependent on external borrowings, while corporates are becoming more selective due to cost pressures. The demand for CP is expected to remain steady in the near term, although borrowing patterns may stabilize as liquidity conditions improve in the new financial year.

Overall, the strong NBFCs CP issuances underscores their critical role in India’s credit ecosystem and highlights ongoing shifts in short-term funding dynamics across the financial sector.