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States Raise ₹16,900 Crore in RBI's Latest Government Securities Auction

States successfully raised ₹16,900 crore through a fully subscribed auction of State Government Securities conducted by the Reserve Bank of India. The funds were raised by Andhra Pradesh, Maharashtra, Punjab, Rajasthan, and Telangana, with Andhra Pradesh mobilizing the largest amount of ₹4,600 crore. Cut-off yields varied by state and tenor, ranging from 7.54% to 7.84%, reflecting market demand and maturity profiles. The RBI facilitates these auctions to help state governments meet their borrowing requirements from the market.

Key Points: States Raise ₹16,900 Cr in RBI SGS Auction

  • Five states raise funds
  • Andhra Pradesh top borrower at ₹4,600 crore
  • Cut-off yields range from 7.54% to 7.84%
  • Auction fully subscribed
2 min read

States raised Rs 16,900 crore in RBI's SGS auction across multiple tenors

Andhra Pradesh, Maharashtra, Rajasthan, Telangana, and Punjab raise funds via RBI's State Government Securities auction with varied yields.

"The total notified amount for the auction was fully allotted - Reserve Bank of India"

New Delhi, April 21

States raised Rs 16,900 crore through the Reserve Bank of India's auction of State Government Securities held on April 21, according to the central bank.

The total notified amount for the auction was fully allotted across multiple states, including Andhra Pradesh, Maharashtra, Punjab, Rajasthan and Telangana.

Andhra Pradesh raised a total of Rs 4,600 crore through three securities of varying tenors--8-year, 16-year and 30-year--while Maharashtra mobilised Rs 4,000 crore across three securities. Punjab raised Rs 1,300 crore, Rajasthan raised Rs 4,000 crore across multiple issuances, and Telangana raised Rs 3,000 crore through three securities.

The cut-off yields for the securities varied across states and tenors, reflecting market demand and maturity profiles.

Andhra Pradesh's securities saw cut-off yields ranging between 7.63 per cent and 7.81 per cent, while Maharashtra's ranged between 7.55 per cent and 7.79 per cent.

Punjab's 12-year security recorded a cut-off yield of 7.84 per cent, while Rajasthan's securities were priced between 7.64 per cent and 7.82 per cent. Telangana's securities saw cut-off yields in the range of 7.54 per cent to 7.82 per cent.

The weighted average yields across the securities were broadly in line with the cut-off yields, indicating stable demand conditions in the auction.

The RBI conducts such auctions on behalf of state governments to enable them to raise funds from the market to meet their borrowing requirements.

- ANI

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Reader Comments

P
Priya S
As someone from Maharashtra, I'm glad our state is able to raise funds, but a bit concerned about the debt levels. Need transparency on what these funds will be used for - roads, water supply, or education? 🤔
V
Vikram M
Interesting to see the yield variations. Telangana getting slightly better rates than others. Shows investor confidence in different state economies. RBI managing this smoothly as always. 👍
S
Sarah B
The 30-year tenor for Andhra Pradesh is quite long-term. Must be for major capital projects. While borrowing is necessary for growth, I hope there's a proper plan for repayment. Future generations shouldn't be burdened.
R
Rohit P
₹16,900 crore is a significant amount! But as a common citizen, I just want to see the results on the ground. Less potholes, better hospitals, reliable electricity - that's what matters in the end.
K
Karthik V
The weighted average yields being in line with cut-off yields shows a stable auction. Good for the overall bond market. Maybe retail investors should also get easier access to these state bonds? Could be a good investment option.

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