RBI Auction Update: 13 States Raise Rs 443.30 Billion Via Loans

The Reserve Bank of India has released details of recent state government securities (SGS) auctions, confirming that 13 states raised Rs 443.30 billion, exceeding the planned Rs 431.3 billion. The auctions witnessed diverse maturities, with yields reflecting prevailing market conditions and investor appetite for long-term debt instruments.  

Key Highlights  

• Uttar Pradesh 15-year loan cut-off at 7.62%  
• Uttarakhand 15-year loan cut-off at 7.67%  
• West Bengal 23-year loan cut-off at 7.69%  
• Maharashtra re-issue of 7.43% SGS 2040 cut-off at 7.5496%  
• Maharashtra BYR loan cut-offs: 7.33% (short), 7.65% (21-year), 7.66% (26-year)  
• Telangana cut-offs: 7.67% (20-year), 7.65% (26-year), 7.65% (29-year)  
• Madhya Pradesh re-issue of 7.72% SGS 2049 cut-off at 7.6802%  
• Tamil Nadu re-issue of 7.43% SGS 2036 cut-off at 7.4094%  
• Tamil Nadu cut-offs: 6.91% (5-year), 7.23% (7-year), 7.40% (9-year), 7.63% (30-year)  
• Chhattisgarh cut-offs: 7.54% (12-year), 7.67% (17-year)  
• Assam cut-off at 7.48%, Himachal Pradesh at 7.69%, Jammu & Kashmir at 7.68%  
• Karnataka re-issue of 7.47% SGS 2036 cut-off at 7.4389%  
• Karnataka cut-offs: 7.48% (11 years 6 months), 7.54% (13-year), 7.31% (7 years 6 months), 7.38% (8 years 6 months)  
• West Bengal re-issue of 7.67% SGS 2046 cut-off at 7.7037%  
• Uttar Pradesh re-issue of 7.57% SGS 2036 cut-off at 7.4703%  
• Gujarat cut-offs: 7.03% (6 years 5 months), 7.40% (10-year); accepted additional 5 billion rupees in 10-year security  

Industry Significance  
Analysts highlight that the oversubscription reflects strong investor confidence in state borrowings, though yields remain elevated due to tight liquidity and inflationary pressures. The additional acceptance by Maharashtra and Gujarat indicates proactive fiscal management to meet funding needs.  

Sources: Reserve Bank of India Auction Data, Business Standard, Economic Times