States Secure Over Rs 28,000 Crore Despite Unaccepted Bids in Government Securities Auction

States raised Rs 28,892 crore through a Reserve Bank of India auction for state government securities. Although the notified amount was Rs 34,150 crore, nearly Rs 5,258 crore in bids were unaccepted. Key contributors included Madhya Pradesh, Rajasthan, Tamil Nadu, Gujarat, and Telangana. Maharashtra abstained from all proposed bids.

In a recent auction of state government securities conducted by the Reserve Bank of India (RBI), states and union territories collectively raised a significant Rs 28,892 crore. Despite the total notified amount for the auction being Rs 34,150 crore, bids amounting to Rs 5,258 crore were not accepted, according to RBI sources.

Major contributions to this sum came from states such as Madhya Pradesh, Rajasthan, and West Bengal. Madhya Pradesh secured Rs 4,800 crore across two issuances, both at a 7.57% yield, with one 18-year tenor and the other 20 years. Similarly, Rajasthan mobilized Rs 5,000 crore in three different securities, ranging from 10 to 28-year tenors with varying yields.

While many states like Tamil Nadu and Telangana successfully raised their targeted amounts, Maharashtra diverged from the trend, opting not to accept any bids for its proposed securities. The auction reflected diverse participation from smaller states such as Assam and Goa, showcasing varying yields and investment strategies.

(With inputs from agencies.)