State Governments and Union Territories Mobilize Rs 14,800 Crore through RBI Auction

On June 9, state governments and Union Territories raised Rs 14,800 crore via RBI-conducted auctions of State Government Securities. Bihar, Chhattisgarh, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh, Manipur, Mizoram, Tamil Nadu, and Uttar Pradesh were the primary participants, with funds raised through various yields and securities.

In a significant financial maneuver, state governments and Union Territories successfully raised Rs 14,800 crore through an auction of State Government Securities (SGS). The auction, conducted by the Reserve Bank of India (RBI), saw the entire notified amount being accepted as per the results announced on June 9.

Notably, Bihar managed to raise Rs 1,600 crore through the re-issue of its 7.92% SGS 2051 security, achieving a cut-off price of Rs 101.20 with a yield of 7.8084%. Meanwhile, Chhattisgarh secured Rs 1,000 crore through two different securities, comprising the re-issue of a 7.37% SGS 2031 and a 7.83% SGS 2040 with respective yields of 7.1782% and 7.8293%.

Gujarat also played a major role, gathering Rs 2,500 crore through two securities. This included Rs 1,500 crore via an 11-year bond with a yield of 7.63% and Rs 1,000 crore through a 14-year bond at a 7.70% yield. Kerala topped with a total mobilization of Rs 2,800 crore through three different securities, combining yields ranging from 7.5289% to 7.8282%.