New Delhi [India], September 9 : The Reserve Bank of India (RBI) on Tuesday announced the results of its latest yield and price-based auction of state government securities, through which six states successfully raised funds aggregating Rs 14,900 crore.
According to the central bank's press release, a total of Rs 15,300 crore was on offer across multiple tenors, but the final amount accepted stood at Rs 14,900 crore as Nagaland opted not to accept bids for its 10-year security.
Bihar emerged as one of the largest participants in the auction, mobilising Rs 6,000 crore across three tranches. The state raised Rs 2,000 crore each through securities with tenors of five, nine, and eleven years.
The cut-off yields for these borrowings were set at 7.02 per cent, 7.45 per cent, and 7.52 per cent respectively.
Goa raised Rs 100 crore through an 11-year security at a yield of 7.48 per cent. Haryana garnered Rs 1,500 crore, split between a 15-year bond at 7.47 per cent and a 16-year bond at 7.51 per cent. Jammu and Kashmir mobilised Rs 300 crore through a 20-year bond at 7.51 per cent.
Madhya Pradesh tapped the market for a substantial Rs 4,000 crore, issuing bonds across three maturities.
The state raised Rs 1,500 crore each through 17-year and 19-year securities at yields of 7.48 per cent and 7.50 per cent respectively. Additionally, it raised Rs 1,000 crore via a re-issue of its 6.99 per cent State Development Loan (SDL) maturing in 2041, which was originally issued on November 17, 2021. The cut-off price for this re-issue was set at Rs 95.07, implying a yield of 7.5201 per cent.
Maharashtra borrowed Rs 3,000 crore across three maturities, including a 4-year bond at 6.74 per cent, an 8-year bond at 7.18 per cent, and a 9-year bond at 7.24 per cent.
However, Nagaland, which had planned to raise Rs 400 crore through a 10-year security, did not accept any amount in this tranche. Notably, Bihar and Madhya Pradesh raised significant amounts with higher yields in the range of 7.45 to 7.52 per cent.
The RBI said the results were part of its routine market borrowing programme and will continue to conduct such auctions as scheduled.
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