'UPI can't stay free forever': RBI Governor Sanjay Malhotra hints cost of running digital payments infrastructure may fall on users
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Mint
16 minutes ago
- Mint
States step up borrowing in July as capex drive gains pace
New Delhi: State governments sharply ramped up their borrowings in July, with ₹ 96,769 crore allotments made through state development loans (SDLs), as they sought to fast-track capital spending and inject momentum into economic growth. This was well above the ₹ 68,383 crore allotted in July last year, according to the latest data from the Reserve Bank of India (RBI). The data showed that state borrowings, in terms of allotments through SDL, climbed steadily through the first four months of FY26, from ₹ 52,870 crore in April to ₹ 64,722 crore in May and ₹ 82,207 crore in June, before peaking in July. The borrowing surge breaks from the usual pattern, where states typically backload SDL issuances in the second half of the fiscal year. Typically, state governments tap low-cost or interest-free funds in the first half of the fiscal year, including their tax revenues, central tax devolution, GST compensation, and interest-free loans from the Centre, before turning to costlier market borrowings. Instead, with the Centre accelerating infrastructure outlays and global headwinds threatening the economic outlook, states now appear to be front-loading borrowings to kickstart projects early. The trend contrasts sharply with the same period last year, when monthly borrowings were far lower. To be sure, state governments raised ₹ 2.97 trillion through market borrowings between April and July in FY26, up sharply from ₹ 2.14 trillion in the same period last year, underscoring an aggressive front-loading of debt to fund development and infrastructure projects. SDLs are bonds issued by state governments to raise funds for development projects and manage fiscal gaps. Proceeds typically finance infrastructure, welfare schemes, and other public spending priorities. Auctioned by the RBI on behalf of states, SDLs are a key source of long-term financing for subnational budgets and a vital tool for sustaining state-led growth initiatives. As things stand, state governments and Union territories are projected to raise ₹ 2.87 trillion through SDLs in the July–September quarter, higher than the ₹ 2.6 trillion in the year-ago period, the RBI data showed. Experts said the move signals a coordinated fiscal push to anchor growth amid geopolitical and trade-related uncertainties, as well as weak private-sector capital expenditure. At the latest SDL auction held on 5 August, states were allotted a total of ₹ 26,750.018 crore. Maharashtra led the latest SDL auction, mobilising a substantial ₹ 6,000 crore, showcasing robust investor confidence in its long-term bond issuances. Following closely, Andhra Pradesh, Madhya Pradesh, and Telangana each mobilised ₹ 5,000 crore, reflecting their strong market participation and diverse tenors across securities. Tamil Nadu secured ₹ 4,000 crore, demonstrating steady demand for its mix of short- and long-term bonds. Telangana, capitalising on consistent investor interest, was allotted ₹ 5,000 crore across its suite of securities with maturities ranging from 19 to 24 years.
News18
41 minutes ago
- News18
Tata Capital Launches Roadshows Ahead of Rs 17,000 Crore IPO
Last Updated: Tata Capital IPO: Tata Capital begins IPO roadshows, aiming to raise over Rs 17,000 crore. Tata Capital IPO: IPO-bound Tata Capital has kicked off a series of institutional roadshows to engage with both global and domestic investors, sources told Moneycontrol. The move comes as the company gears up for its highly anticipated initial public offering, which is expected to be sized at over Rs 17,000 crore. Tata Capital had earlier filed an updated confidential draft red herring prospectus (DRHP) for its much-anticipated initial public offering (IPO). Tata Sons is expected to offload up to 23 crore shares in the offer for sale (OFS), while International Finance Corporation (IFC) may sell 3.58 crore shares. The IPO will also include a fresh issue of up to 21 crore shares. The move is in line with the Reserve Bank of India's directive requiring all 'upper layer' non-banking financial companies (NBFCs) to go public by September 2025. Tata Group's financial services firm Tata Capital has reported strong financial performance ahead of the listing. In the March 2025 quarter, the company's consolidated profit after tax (PAT) surged 31% year-on-year to Rs 1,000 crore, while revenue from operations jumped nearly 50% to Rs 7,478 crore. For the full FY25, PAT rose to Rs 3,655 crore from Rs 3,327 crore in FY24, and total revenues climbed to Rs 28,313 crore from Rs 18,175 crore. In April 2025, Tata Capital filed draft papers with markets regulator Sebi to launch its initial public offering. The draft papers for the $2-billion IPO was filed through a confidential pre-filing route. At this size, the company is expected to be valued around $11 billion. Tata Capital, identified by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), has already secured board's approval to proceed with the initial share sale. Notably, Tata Sons, the holding company of Tata Capital, owns a 92.83 per cent stake in the company. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
an hour ago
- Business Standard
Treasury bills: Use SIP to smooth rate volatility, invest steadily
Investors with regular income, short-term goals, and a strong need for capital preservation may go for T-Bills premium Himali Patel Listen to This Article The Reserve Bank of India (RBI) has introduced the systematic investment plan (SIP) feature for investing in treasury bills (T-Bills) via its Retail Direct platform. Retail investors must understand the suitability of this instrument for their financial goals before venturing into them. Understanding T-Bills T-Bills are short-term government borrowing instruments issued by the RBI. 'T-Bills have tenures like 91, 182, and 364 days. Dated government securities (G-Secs) are issued by the RBI for longer-term borrowing, with tenures ranging from one year to 50 years,' says Udbhav Shah, proprietor, DravyaSiddhi, an Association of Mutual Funds in India (Amfi)-registered mutual fund and
