Indian States Secure Rs 26,900 Crore Through State Securities Auction
In a significant financial move, twelve Indian states have raised Rs 26,900 crore via State Government Securities, as per RBI data. Maharashtra emerged as the top contributor, securing Rs 6,000 crore. This strategic auction helps states fulfill their capital and fiscal needs while adhering to the central bank's guidelines.
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Twelve Indian states have collectively raised Rs 26,900 crore in the latest auction of State Government Securities (SGS), the Reserve Bank of India (RBI) reported. Maharashtra spearheaded the initiative, garnering Rs 6,000 crore through four securities with yields ranging from 7.12% to 7.16% over 22 to 25 years.
Close on Maharashtra's heels, Andhra Pradesh mobilized Rs 3,600 crore with lower yield rates of 6.87% and 6.88% for securities maturing in 8 and 9 years. Uttar Pradesh followed, raising Rs 3,000 crore in an 8-year tenure at 6.86% yield. Telengana and Punjab each secured Rs 2,500 crore, with Punjab offering the highest yield of 7.19% on a 24-year security.
The auction also saw participation from West Bengal, Gujarat, and Bihar, raising Rs 2,000 crore each with yields varying from 6.80% to 7.07%. Odisha, Tamil Nadu, and Goa raised lesser amounts, contributing to the total. The RBI's yield-based auction, part of the regular borrowing calendar, facilitates capital funding for states, ensuring fiscal discipline and infrastructure development.
(With inputs from agencies.)
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