The Reserve Bank of India (RBI) announced successful completion of state government securities (SGS) auctions, with 15 states collectively raising 354.5 billion rupees, in line with the targeted borrowing. Cut-off yields ranged between 6.86% and 7.58%, reflecting investor demand and varied maturities across regions.
India’s central bank confirmed that 15 states raised 354.5 billion rupees through loan auctions, meeting the scheduled borrowing target. The auctions covered multiple maturities, including re-issues of existing securities and fresh issuances, with yields reflecting prevailing market conditions and investor appetite.
Key highlights from the announcement include
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Assam, Himachal Pradesh, and Kerala cut-off yields stood at 7.56%, while Bihar was lower at 7.42%.
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Karnataka raised funds via re-issues of 7.03% SGS 2033 and 7.10% SGS 2032, with cut-offs at 7.2981% and 7.1804% respectively.
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Tamil Nadu’s re-issue of 7.34% SGS 2034 was cut off at 7.3798%, while its 4-year loan stood at 6.86%.
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Rajasthan’s 4-year loan cut-off was 6.90%, with its 6-year loan at 7.24%.
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Andhra Pradesh secured funds across 9-year to 17-year maturities, with yields ranging from 7.37% to 7.54%.
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Madhya Pradesh’s 5-year loan cut-off was 7.02%, while its 21-year loan closed at 7.54%.
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West Bengal recorded the highest cut-off at 7.58% for its 17-year loan, with its 21-year loan at 7.57%.
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Other states including Manipur, Telangana, Tripura, and Uttarakhand saw cut-offs between 7.52% and 7.54%.
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The auctions highlight steady investor demand for state debt despite broader market volatility.
The successful completion of these auctions underscores the RBI’s role in facilitating state borrowing while ensuring market stability. With yields reflecting both short- and long-term investor sentiment, the outcome provides states with critical funding for infrastructure and development projects.
Sources: Business Standard, Economic Times, Moneycontrol, RBI Press Release