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States Borrow Rs 45,960 Crore in RBI Auction; Karnataka Leads at Rs 10,000 Cr

Multiple Indian states collectively raised Rs 45,960 crore through a State Government Securities (SGS) auction conducted by the Reserve Bank of India. Karnataka emerged as the largest borrower, securing Rs 10,000 crore through a mix of fresh and re-issued securities. Significant borrowings were also recorded by Tamil Nadu (Rs 8,000 crore), Madhya Pradesh (Rs 5,800 crore), and Uttar Pradesh (Rs 3,500 crore). The auction featured a wide range of tenors, from short-term to long-term bonds, reflecting varied state financing needs.

Key Points: States Raise Rs 45,960 Crore in RBI Government Securities Auction

  • Karnataka leads borrowing at Rs 10,000 crore
  • Total state borrowing hits Rs 45,960 crore
  • Tamil Nadu raises Rs 8,000 crore
  • Madhya Pradesh borrows Rs 5,800 crore
2 min read

State borrowing reach Rs 45,960 crore in the latest RBI SGS auction

Multiple state governments borrow Rs 45,960 crore via RBI auction. Karnataka leads with Rs 10,000 crore, followed by Tamil Nadu and Madhya Pradesh.

"Karnataka is the largest borrower in the auction, raising Rs 10,000 crore - RBI Data"

New Delhi, March 10

The Reserve Bank of India today announced that multiple state governments have raised a total of Rs 45,960 crore through the auction of State Government Securities.

Among the participating states, Andhra Pradesh has raised Rs 3,000 crore through three securities with tenors of 13, 15 and 17 years. Arunachal Pradesh has raised Rs 190 crore with a 20-year tenor, while Assam has borrowed Rs 900 crore through a 15-year security. Delhi has raised Rs 1,000 crore via a 10-year security.

Gujarat has raised Rs 2,000 crore through two securities with tenors of seven years and six months, and 11 years, with an additional borrowing option of Rs 500 crore for each. Haryana has issued securities worth Rs 3,000 crore across tenors of four, 12 and 18 years. Meanwhile, Jammu and Kashmir has borrowed Rs 900 crore with a 15-year tenor.

Karnataka is the largest borrower in the auction, raising Rs 10,000 crore through a mix of fresh securities and re-issues. These include re-issuances of the 7.31 per cent Karnataka SGS 2033, 7.38 per cent Karnataka SGS 2034, and 7.48 per cent Karnataka SGS 2037, along with other securities.

Other states participating in the auction include Kerala, which has raised Rs 1,000 crore through a 23-year security, and Madhya Pradesh, which has borrowed Rs 5,800 crore through securities with tenors of 10, 14 and 21 years.

Smaller issuances include Rs 120 crore by Mizoram with a 15-year tenor and Rs 250 crore by Sikkim with a 10-year tenor.

Punjab has raised Rs 2,000 crore through the re-issue of the 7.62 per cent Punjab SGS 2032, originally issued in November 2022. Tamil Nadu has raised Rs 8,000 crore through a combination of fresh issuances and re-issued securities, including the 7.23 per cent Tamil Nadu SGS 2033 and the 7.63 per cent Tamil Nadu SGS 2056.

Additionally, Tripura has borrowed Rs 800 crore through a 15-year security, while Uttar Pradesh has raised Rs 3,500 crore via the re-issue of securities maturing in 2037, 2041 and 2046. West Bengal has raised Rs 3,500 crore through securities with tenors of 18 and 22 years.

- ANI

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Reader Comments

R
Rohit P
Interesting to see the different tenors. Some states going for very long-term debt like Kerala's 23-year security. Shows confidence in future revenue streams, but also locks in payments for a generation. 🤔
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Aman W
As someone from UP, I'm glad to see my state raising funds. But the real question is execution. Past borrowings haven't always translated to visible development in my district. Accountability is key.
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Sarah B
The detailed breakdown is helpful. It's a massive total - nearly 46,000 crores! This level of state borrowing needs to be matched with transparent spending reports so citizens can track where this money goes.
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Karthik V
Southern states like TN, Karnataka, Kerala borrowing heavily. Shows they're investing in growth, but also raises questions about fiscal discipline. Hope the interest payments don't become a burden on future budgets.
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Nikhil C
The smaller states like Mizoram and Sikkim with their modest borrowings show how diverse India's economic landscape is. Every rupee counts more there. Hope they get good terms from RBI. 👍

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