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Business Standard
06-05-2025
- Business
- Business Standard
4X growth and counting: Baroda BNP Paribas Gilt Fund hits Rs 1,500 crore
Baroda BNP Paribas Gilt Fund, a flagship fixed income mutual fund, has completed its twenty third year with a dual milestone of surpassing Rs 1,500 crore in Assets Under Management (AUM), and rewarding investors with 4X growth. Since inception, the Baroda BNP Paribas Gilt Fund has delivered consistent long-term returns, transforming an initial investment of RS 10,000 into Rs 41,919.60 as of March 31, 2025 — an over four-fold increase. "Over the past 12 months alone, the scheme's regular plan has provided a 9.61% return, making it a preferred choice for investors seeking low-risk, long-duration debt investments with capital appreciation potential," Baroda BNP Paribas Mutual Fund said in a statement. The fund maintains zero default risk, ensuring stable and secure returns. "The portfolio of the Baroda BNP Paribas Gilt Fund is positioned to actively benefit from the spreads between G-Secs and SDLs as well as from our expectations of softening of the yield curve led by positive fundamentals for India's bond markets,' said Prashant Pimple, Chief investment officer Fixed income, Baroda BNP Paribas Asset Management (India). Managed by Gurvinder Singh Wasan, CFA, Senior Fund Manager and Prashant Pimple, Chief Investment Officer – Fixed Income at Baroda BNP Paribas Mutual Fund, the scheme primarily invests in high-quality, risk-free government securities and State Development Loans (SDLs). "The fund takes strategic duration calls to capture potential gains from expected RBI interest rate cuts, making it an ideal option for investors looking to benefit from a falling interest rate environment. With the latest RBI monetary policy changing its stance to accommodative from neutral, schemes such as these, are well positioned to benefit from the capital appreciation that will result from the RBI cutting repo rates," the company said in a statement. "'We expect to run a portfolio duration close to the duration of the benchmark 10-year G-Sec security. This is based on our view that rates can come down lower given inflation adjusted real rates are still in positive zone," said Pimple.
Mint
29-04-2025
- Business
- Mint
State government borrowings dip sharply in April
New Delhi: State government borrowings through securities declined sharply to ₹ 53,870 crore in April from ₹ 2.25 trillion in March, according to the latest data from the Reserve Bank of India (RBI), likely deferring costlier loans to suit spending. On Tuesday, 10 states raised ₹ 24,700 crore through auctions of State Development Loans (SDLs), the largest tranche during the month. Earlier in April, states had mobilized funds in four smaller tranches of ₹ 11,800 crore, ₹ 3,500 crore, ₹ 3,000 crore and ₹ 10,870 crore. SDLs are bonds issued by state governments to finance budgetary needs and fund development projects across infrastructure, health, education and other public services. These securities are auctioned by the RBI and are a key tool for states to raise resources from the market. The indicative amount for state borrowings in the first quarter of FY26 (April–June 2025) is pegged at ₹ 2.73 trillion, slightly higher than the ₹ 2.54 trillion estimated in the same period last year. Experts note a growing trend among states to defer the bulk of their market borrowings to the second half of the financial year, giving them greater flexibility in managing cash flows and project timelines. States typically rely on low-cost or interest-free funds in the first half of the fiscal year—such as their tax revenues, central tax devolution, GST compensation, and interest-free loans from the Centre—before turning to market borrowings when these sources begin to dry up, said Venkatakrishnan Srinivasan, founder and managing partner, Rockfort Fincap LLP. "Many state infrastructure projects—from roads and bridges to water supply systems—gain real momentum only after the monsoon season ends. Naturally, this means higher spending (and borrowing) needs in H2," he said. "Also, to ensure that the bond market isn't flooded with too much borrowing at once, the central government has been frontloading its bond issues in the first half, leaving more space in the second half—especially in Q4—for states to borrow without driving up interest costs. It's a coordinated move that benefits both sides," he added. At Tuesday's auction, Maharashtra led with ₹ 6,500 crore, followed by Rajasthan ( ₹ 4,500 crore), Punjab ( ₹ 2,500 crore), Uttar Pradesh ( ₹ 3,000 crore) and Kerala ( ₹ 2,000 crore). Smaller amounts were raised by Telangana ( ₹ 1,400 crore), Himachal Pradesh ( ₹ 1,300 crore), Tamil Nadu and Haryana ( ₹ 1,000 crore each), Uttarakhand ( ₹ 1,000 crore) and Tripura ( ₹ 500 crore). First Published: 29 Apr 2025, 08:34 PM IST
