Six Indian states collectively raised Rs 130 billion through market borrowings, in line with their targeted amount. The Reserve Bank of India (RBI) announced cut-off yields across multiple maturities, reflecting investor demand and borrowing costs. The auction underscores states’ reliance on debt financing to support infrastructure and development.
India’s central bank confirmed that six states successfully raised Rs 130 billion via loans, meeting their targeted borrowing for the week. The Reserve Bank of India detailed cut-off yields across various maturities, highlighting the cost of borrowing for states including Karnataka, Odisha, Assam, Jammu and Kashmir, and Uttarakhand.
Key highlights from the announcement include
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Total borrowing by six states stood at Rs 130 billion, matching the target.
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Karnataka re-issued its 7.25% SGS 2032 bond at a cut-off yield of 7.2084%.
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Odisha’s 10-year loan cut-off was set at 7.49%, while its 20-year loan stood at 7.59%.
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Assam and Jammu & Kashmir loans were cut off at 7.62%.
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Uttarakhand’s loan cut-off was fixed at 7.51%.
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Karnataka also issued a 7-year 6-month loan at 7.32% and an 11-year 6-month loan at 7.54%.
The auction results reflect steady investor interest in state government securities despite higher yields, indicating cautious optimism in India’s debt markets. These borrowings remain crucial for funding state-level infrastructure, welfare programs, and fiscal commitments.
Sources: Reuters, Economic Times, Business Standard