Latest news with #StateGovernmentSecurities
Mint
18-07-2025
- Business
- Mint
₹27,000 crore worth government securities fully subscribed on Friday
Mumbai (Maharashtra) [India], July 18 (ANI): The central government on Friday auctioned securities worth total ₹ 27,000 crore ( ₹ 15,000 crore maturing in 2030 and ₹ 12,000 crore maturing in 2054). According to Reserve Bank of India (RBI), the government securities was subscribed to in entirety. The 2030 maturing bond will yield 6.01 per cent annualized returns, and 7.09 per cent for the 2054 maturing bond. The underwriting auction was conducted through multiple price-based method today. Primary Dealers have submitted their bids for auction electronically through Core Banking Solution (E-Kuber) System between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction (today). The underwriting commission will be credited to the current account of the respective primary dealers with RBI today itself. Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities. Recently, as many as twelve Indian states raised a total of ₹ 26,900 crore in the latest auction of State Government Securities (SGS), RBI data showed. All participating states accepted the full amount they had notified for the auction. Maharashtra led the fundraising drive, mobilising ₹ 6,000 crore through four securities. The state offered yields of 7.12 per cent for a 22-year security, 7.13 per cent for a 23-year security, 7.15 per cent for a 24-year security and 7.16 per cent for a 25-year security. Following Maharashtra, Andhra Pradesh raised ₹ 3,600 crore through two securities of ₹ 1,500 crore and ₹ 2,100 crore against a lower yield of 6.87 per cent and 6.88 per cent for tenures of 8 and 9 years, respectively. Uttar Pradesh raised ₹ 3,000 crore through one security at a yield of 6.86 per cent for a tenure of 8 years. Uttar Pradesh is followed by Telengana and Punjab, both of which raised ₹ 2,500 crore each. Punjab also gave the highest yield on its security of 7.19 per cent for a tenure of 24 years. Telangana's ₹ 2,500 crore was through three securities, two of ₹ 1,000 crore each, the first at a yield of 7.10 per cent for 32 years and the second at a yield of 7.09 per cent for a tenure of 35 years. The third security of ₹ 500 crore was raised by the state for 38 years at a yield of 7.09 per cent. West Bengal, Gujarat and Bihar raised securities worth ₹ 2,000 crore each. West Bengal at a yield of 7.07 per cent for a tenure of 12 years, Gujarat with a yield of 6.80 per cent for a tenure of nine years and Bihar with a yield of 6.90 per cent for a tenure of 10 years. Other participants in the auction included Odisha, which raised ₹ 1,500 crore through two securities of ₹ 1,000 crore and ₹ 500 crore. First at a yield of 6.98 per cent for a tenure of 12 years and second at 6.13 per cent for a tenure of three years, respectively. Tamil Nadu raised ₹ 1,000 crore through a security with a yield of 6.82 per cent for a tenure of 10 years. Goa raised ₹ 100 crore at 6.89 per cent for a tenure of 10 per cent. RBI had conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs. (ANI)
Canada News.Net
15-07-2025
- Business
- Canada News.Net
Twelve states raised Rs 26,900 crore via auction of Government Securities; Punjab offers highest yield of 7.19%
New Delhi [India], July 15 (ANI): Twelve Indian states raised a total of Rs 26,900 crore in the latest auction of State Government Securities (SGS), according to data released by the Reserve Bank of India (RBI). All participating states accepted the full amount they had notified for the auction. Maharashtra led the fundraising drive, mobilising Rs 6,000 crore through four securities. The state offered yields of 7.12 per cent for a 22-year security, 7.13 per cent for a 23-year security, 7.15 per cent for a 24-year security and 7.16 per cent for a 25-year security. Following Maharashtra, Andhra Pradesh raised Rs 3,600 crore through two securities of Rs 1,500 crore and Rs 2,100 crore against a lower yield of 6.87 per cent and 6.88 per cent for tenures of 8 and 9 years, respectively. Uttar Pradesh raised Rs 3,000 crore through one security at a yield of 6.86 per cent for a tenure of 8 years. Uttar Pradesh is followed by Telengana and Punjab, both of which raised Rs 2,500 crore each. Punjab also gave the highest yield on its security of 7.19 per cent for a tenure of 24 years. Telangana's Rs 2,500 crore was through three securities, two of Rs 1,000 crore each, the first at a yield of 7.10 per cent for 32 years and the second at a yield of 7.09 per cent for a tenure of 35 years. The third security of Rs 500 crore was raised by the state for 38 years at a yield of 7.09 per cent. West Bengal, Gujarat and Bihar raised securities worth Rs 2,000 crore each. West Bengal at a yield of 7.07 per cent for a tenure of 12 years, Gujarat with a yield of 6.80 per cent for a tenure of nine years and Bihar with a yield of 6.90 per cent for a tenure of 10 years. Other participants in the auction included Odisha, which raised Rs 1,500 crore through two securities of Rs 1,000 crore and Rs 500 crore. First at a yield of 6.98 per cent for a tenure of 12 years and second at 6.13 per cent for a tenure of three years, respectively. Tamil Nadu raised Rs 1,000 crore through a security with a yield of 6.82 per cent for a tenure of 10 years. Goa raised Rs 100 crore at 6.89 per cent for a tenure of 10 per cent. RBI conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs. The data showed that investor demand remained strong across different tenors, and all states managed to raise their intended amounts without any under-subscription. These auctions are a key for states to fund infrastructure and development projects while maintaining fiscal discipline under the broader macroeconomic framework set by the central bank. (ANI)
India Gazette
09-07-2025
- Business
- India Gazette
Seven states raised a total of Rs 13,300 crore via auction of government securities; MP offers highest yield
New Delhi [India], July 9 (ANI): Seven major Indian states raised a total of Rs 13,300 crore in the latest round of auction of State Government Securities (SGS), according to the data released by the Reserve Bank of India (RBI). All participating states accepted the full amount they had notified for the auction. Madhya Pradesh led the fundraising drive, mobilizing Rs 4,800 crore through two securities. The state offered the highest yields in the auction, 7.14 per cent on a 16-year security and 7.15 per cent on an 18-year security. Following Madhya Pradesh, Maharashtra raised a substantial amount of Rs 4,000 crore. The state floated two securities with 20-year and 21-year tenors, both offering a yield of 7.14 per cent. Bihar, on the other hand, raised Rs 2,000 crore at the lowest yield in this round of auction. The state offered a 10-year security at 6.88 per cent, which was the most economical in terms of interest cost. Other participants in the auction included Haryana, Jammu and Kashmir, Mizoram, and Telangana. Haryana raised Rs 1,000 crore with a 16-year bond at a cut-off yield of 7.12 per cent. Jammu and Kashmir and Mizoram both offered 15-year bonds with yields of 7.14 per cent, raising Rs 400 crore and Rs 100 crore respectively. Telangana issued a 30-year bond, raising Rs 1,000 crore at a yield of 7.13 per cent, marking the longest tenor among all the issuances in this auction. The RBI conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs. The data showed that investor demand remained strong across different tenors, and all states managed to raise their intended amounts without any under-subscription. These auctions are a key way for states to fund infrastructure and development projects while maintaining fiscal discipline under the broader macroeconomic framework set by the central bank. (ANI)
The Hindu
03-07-2025
- Business
- The Hindu
Telangana treading cautiously on market borrowings; it raised ₹17,400 crore in first quarter
Telangana Government appears to be treading cautiously in its market borrowings. It has proposed to raise ₹11,000 crore market borrowings during the July-September quarter of the current financial year [2025-26]. This is much lower compared to ₹17,400 crore raised during the April-June [first] quarter primarily to be used to credit assured amounts into the accounts of farmers under Rythu Bharosa — the farmers' investment support scheme. What are market borrowings? Market borrowings by State Governments refer to the funds that State governments raise by selling securities, primarily State Development Loans (SDLs), to investors in the market. Securities are assurances given by State government. The State government proposes to raise ₹4,500 crore in four tranches in July, participating in all but one auction of securities to be conducted by the Reserve Bank of India (RBI). It has raised ₹1,500 crore during the auction conducted on July 1 and plans to raise ₹3,000 crore in three instalments during the auctions to be held on July 15, 22 and 29. Similarly, the government indicated that it would raise ₹3,500 crore in three auctions during August and balance ₹3,000 crore in three more auctions during September taking the total borrowings to ₹11,000 crore for the quarter, according to the provisional figures in the indicative calendar of borrowings released by the RBI for the second quarter. Why are market borrowings raised? This is a key method for States to finance their fiscal deficits and fund various developmental activities. State Development Loans are now categorised as State Government Securities. A steep reduction in the borrowing limit by the Union Finance Ministry is said to be another reason for the State government to tread cautiously. The government had proposed to raise over ₹69,539 crore through borrowings, including open market borrowings of ₹64,539 crore during the current fiscal in the budget estimates. But the quantum had, however, been reduced steeply to ₹54,009 crore as could be seen from the provisional figures in the key indicators released by the Comptroller and Auditor General of India in the first two months forcing the Government to restructure its open market loans to meet the requirements. What are consolidated sinking and guarantee redemption fund? State governments have to deposit a certain amount with Reserve Bank of India under the consolidated sinking fund and guarantee redemption fund mandatorily. If a State government defaults on the loan payments, money is deducted from these funds. Expenditure on interest payment in two months While the cut in borrowing limit had come as a setback, the State Government is facing a tough task in the form of interest payments. The government had incurred ₹4,166 crore towards interest payment by May end, spending 21.51% of the ₹19,639 crore projected for the year in just two months.
The Hindu
23-06-2025
- Business
- The Hindu
Telangana Govt rescheduled its borrowings, apparently to meet Rythu Bharosa commitment
Telangana government has apparently rescheduled its market borrowings in the form of auction of State Government Securities with the Reserve Bank of India (RBI) to raise resources in excess of ₹9,000 crore required for crediting amounts into farmers' accounts under the Rythu Bharosa — farmers investment support scheme. The government, which proposed to raise ₹14,000 crore for the April-June quarter of the current fiscal (2025-26), has in fact raised ₹17,400 crore till date, with just one week left for the end of the quarter. It has raised a huge ₹8,500 crore in auction of securities conducted by the RBI in June alone, raising ₹1,500 crore on June 3, ₹3,000 crore on June 10 and ₹4,000 crore on June 17 to ensure that there is no dearth of funds for disbursal under Rythu Bharosa. This was against the proposed market borrowings in the indicative calendar of auction of securities wherein the Government indicated that it would raise Rs. 4,000 crore in two instalments of Rs. 2,000 crore each in April and Rs. 5,000 crore each in May and June taking the total borrowings for the quarter to Rs. 14,000 crore. The government, however, appears to have altered the quantum and dates of its participation in the auction of securities to ensure that adequate funds are available for crediting the first instalment of Rythu Bharosa into farmers' accounts. The government participated in the auctions of securities conducted in April and May, raising ₹8,900 crore in for meeting its immediate needs given the tight financial situation it has been facing.
