RBI's State Securities Auction: Nine States Raise Rs 15,560 Crore

The Reserve Bank of India's latest auction of state government securities witnessed nine states and union territories raising Rs 15,560 crore, falling short of a Rs 16,560 crore target. This auction highlights the steady demand for long-term state debt instruments with a variety of yields across different maturities.

On Tuesday, the Reserve Bank of India announced the outcomes of the yield and price-based auction for state government securities, where nine states and union territories collectively raised Rs 15,560 crore, slightly under the expected Rs 16,560 crore. Participating regions included Bihar, Chhattisgarh, Jammu and Kashmir, Madhya Pradesh, Maharashtra, Mizoram, Tamil Nadu, Telangana, and Uttar Pradesh.

Bihar successfully raised Rs 1,500 crore at a 7.44% yield over a 15-year period. Meanwhile, Chhattisgarh secured Rs 1,500 crore through two re-issues: Rs 500 crore of 6.59% Chhattisgarh SDL 2028 at a 6.3876% yield, and Rs 1,000 crore of 7.14% Chhattisgarh SGS 2033 at 7.1408%. Jammu and Kashmir collected Rs 450 crore at a 7.46% yield for 20 years, whereas Madhya Pradesh amassed Rs 4,000 crore via three securities, yielding between 7.45% and 7.46% with maturities of 16, 18, and 19 years respectively.

In Western India, Maharashtra raised Rs 2,000 crore in two allotments: Rs 1,000 crore at 7.07% for 8 years, and another Rs 1,000 crore at 7.25% for 12 years. Mizoram brought in Rs 110 crore at a 7.14% yield over 8 years. Tamil Nadu from the south raised Rs 2,000 crore with a re-issue, while Telangana gathered Rs 1,000 crore at 7.44% for a remarkable 31-year tenor. Uttar Pradesh, among the larger states, acquired Rs 3,000 crore split equally between two yields: 7.02% for 7 years and 7.24% for 11 years. These results underscore a robust demand for long-term state debt amid stable yield projections.

(With inputs from agencies.)