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States Raise Rs 46,100 Crore in RBI Auction, Exceeding Notified Amount

Sixteen state governments collectively raised Rs 46,100 crore through the Reserve Bank of India's yield-based auction, surpassing the notified amount of Rs 44,550 crore. The funds were mobilized through a combination of fresh issuances and re-issues of State Government Securities (SGS) across maturities ranging from three to twenty-eight years. Major issuances included Andhra Pradesh, Bihar, Gujarat, Maharashtra, and Tamil Nadu, which accepted significant amounts at varying yields reflecting their fiscal strategies. The RBI data indicated additional subscriptions were accepted for select securities from states like Gujarat and Maharashtra.

Key Points: States Raise Rs 46,100 Crore via RBI Securities Auction

  • 16 states participated
  • Borrowing exceeded notified amount
  • Tenors ranged from 3 to 28 years
  • Mix of fresh and re-issued securities
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States raise Rs 46,100 Crore via RBI yield-based auction

16 Indian states raised Rs 46,100 crore through RBI's yield-based auction, exceeding the notified amount with varied long-term borrowing strategies.

"states collectively accepting Rs 46,100 crore against the notified amount of Rs 44,550 crore - RBI Data"

New Delhi, February 24

The Reserve Bank of India on Tuesday announced the results of the yield/price-based auction of State Government Securities, with states collectively accepting Rs 46,100 crore against the notified amount of Rs 44,550 crore, indicating additional subscriptions in select securities.

As many as 16 State Governments raised funds through a mix of fresh issuances and re-issues. The securities span maturities ranging from three years to 28 years, reflecting varied borrowing strategies aligned with states' fiscal requirements.

Among major issuances, Andhra Pradesh raised Rs 1,500 crore at a cut-off yield of 7.69 per cent for a 16-year tenor and Rs 1,600 crore at 7.70 per cent for 21 years, as per the data released by the RBI.

Bihar accepted Rs 1,500 crore at 7.72% (15-year) and Rs 1,600 crore at 7.69% (28-year). Chhattisgarh raised Rs 1,000 crore at 7.64% (14-year) and Rs 1,000 crore via a re-issue of its 7.59% SGS 2046 at a cut-off price of Rs 98.78 (7.7096%).

Goa raised Rs 100 crore at 7.50% (10-year), while Gujarat accepted Rs 1,500 crore against a notified Rs 1,000 crore at 7.24% for a 7-year and 6-month security, along with Rs 1,000 crore at 7.40% (10-year).

Haryana raised Rs 1,000 crore at 7.67% (15-year) and Rs 1,000 crore through a re-issue of its 7.73% SGS 2045 at Rs 100.10 (7.7196%).

Karnataka mobilised Rs 1,000 crore via a re-issue of its 7.25% SGS 2033 at Rs 100.03 (7.2443%), besides multiple issuances totalling Rs 8,000 crore across 8-year, 8-year 6-month, 10-year, and 10-year 6-month tenors with yields ranging from 7.37% to 7.47%. Kerala accepted Rs 1,000 crore at 7.72% (19-year).

Maharashtra accepted Rs 1,850 crore each across 4-year (6.77%), 8-year (7.34%), and 11-year (7.48%) securities against Rs 1,500 crore notified per tenor. Nagaland raised Rs 500 crore at 6.89% (4-year), Punjab Rs 2,000 crore at 7.54% (8-year), and Rajasthan Rs 2,000 crore at 7.44% (7-year).

Sikkim accepted Rs 250 crore at 7.53% (10-year). Tamil Nadu raised Rs 1,000 crore at 6.54% (3-year), Rs 1,000 crore via re-issue of 7.12% SGS 2032 at Rs 100.17 (7.0842%), Rs 2,000 crore at 7.43% (10-year), and Rs 1,000 crore via re-issue of 7.44% SGS 2055 at Rs 97.66 (7.6388%).

Uttar Pradesh accepted Rs 500 crore via re-issue of 7.24% SGS 2033 at Rs 99.52 (7.3192%), Rs 1,000 crore via re-issue of 7.59% SGS 2041 at Rs 99.27 (7.6687%), and Rs 1,500 crore at 7.71% (20-year).

West Bengal raised Rs 1,000 crore at 7.72% (15-year) and Rs 2,000 crore through a re-issue of 7.74% SGS 2048 at Rs 100.12 (7.7283%).

As per the RBI data, Gujarat accepted an additional Rs 500 crore in the 7-year 6-month security, while Maharashtra accepted an additional Rs 350 crore each across the 4-year, 8-year, and 11-year securities.

- ANI

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Reader Comments

P
Priya S
Interesting to see the variation in yields across states. Maharashtra and Tamil Nadu getting funds at lower rates reflects their stronger fiscal position. Bihar and UP paying higher interest is a concern. This data is a clear report card on state economies.
R
Rohit P
Rs 46,100 crore is a huge amount! While it's necessary for development, I worry about the debt burden on future generations. States need to be transparent about how every rupee is spent. Public should have a portal to track these projects.
S
Sarah B
As an NRI looking to invest, this is useful information. The yields are attractive compared to global rates. Might consider state bonds for part of my portfolio, especially from states like Gujarat and Karnataka with better fiscal management.
V
Vikram M
The fact that they raised MORE than the notified amount is the key takeaway. It means there's strong liquidity in the system and appetite for state paper. RBI managing this smoothly is commendable. 👍
K
Kavya N
I appreciate the detailed breakdown. But as a common citizen, I have a respectful criticism: these financial articles are too technical. Can we have a simpler explanation of what this means for public services, jobs, and inflation? The connection to ground reality is missing.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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