Key Points

Maharashtra led the fundraising drive, mobilising Rs 6,000 crore through four securities. The state offered yields of 7.12 per cent for a 22-year security, 7.13 per cent for a 23-year security, 7.15 per cent for a 24-year security and 7.16 per cent for a 25-year security.

Following Maharashtra, Andhra Pradesh raised Rs 3,600 crore through two securities of Rs 1,500 crore and Rs 2,100 crore against a lower yield of 6.87 per cent and 6.88 per cent for tenures of 8 and 9 years, respectively.

Uttar Pradesh raised Rs 3,000 crore through one security at a yield of 6.86 per cent for a tenure of 8 years.

Uttar Pradesh is followed by Telengana and Punjab, both of which raised Rs 2,500 crore each. Punjab also gave the highest yield on its security of 7.19 per cent for a tenure of 24 years.

Telangana's Rs 2,500 crore was through three securities, two of Rs 1,000 crore each, the first at a yield of 7.10 per cent for 32 years and the second at a yield of 7.09 per cent for a tenure of 35 years. The third security of Rs 500 crore was raised by the state for 38 years at a yield of 7.09 per cent.

West Bengal, Gujarat and Bihar raised securities worth Rs 2,000 crore each. West Bengal at a yield of 7.07 per cent for a tenure of 12 years, Gujarat with a yield of 6.80 per cent for a tenure of nine years and Bihar with a yield of 6.90 per cent for a tenure of 10 years.

Other participants in the auction included Odisha, which raised Rs 1,500 crore through two securities of Rs 1,000 crore and Rs 500 crore. First at a yield of 6.98 per cent for a tenure of 12 years and second at 6.13 per cent for a tenure of three years, respectively.

Tamil Nadu raised Rs 1,000 crore through a security with a yield of 6.82 per cent for a tenure of 10 years. Goa raised Rs 100 crore at 6.89 per cent for a tenure of 10 per cent.

RBI conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs.

The data showed that investor demand remained strong across different tenors, and all states managed to raise their intended amounts without any under-subscription.

These auctions are a key for states to fund infrastructure and development projects while maintaining fiscal discipline under the broader macroeconomic framework set by the central bank.

- ANI