Companies are increasingly opting for commercial papers (CPs) to raise short-term funds rather than depending solely on bank loans. As per data from the Reserve Bank of India, firms raised ₹5.37 trillion through CPs in the April–June quarter of FY27, marking the highest quarterly mobilisation in the past 18 quarters.
In June alone, issuances touched ₹2.55 trillion, the highest monthly level in nearly five years.
This sharp rise indicates that companies are relying more on short-term borrowing, particularly NBFCs, which are raising funds to support loan growth and refinance maturing debt. As a result, commercial papers have once again come into focus.
business-standard