The Reserve Bank of India (RBI) on Tuesday said that 13 states collectively raised Rs 34,100 crore through the sale of state government securities (SGS) in the latest weekly auction. The entire notified amount was accepted, with yields largely hovering in the 7.3% to 7.6% band, except for a few re-issues from Maharashtra and Tamil Nadu.
Andhra Pradesh secured Rs 2,000 crore via two long-tenor borrowings of 20 and 21 years, both at a cut-off yield of 7.50%. Bihar raised Rs 4,000 crore through 18- and 24-year issuances, priced at yields of 7.58% and 7.57% respectively.
Goa tapped the market for a relatively modest Rs 100 crore at 7.37% on an 11-year paper. Haryana mobilised Rs 2,000 crore across 14- and 16-year securities with yields of 7.43% and 7.44%. Kerala borrowed Rs 2,000 crore on a 15-year note at 7.49%.
Madhya Pradesh matched that with Rs 3,000 crore, split between 20- and 23-year maturities, priced at 7.48% and 7.51%. Maharashtra conducted four re-issues, each worth Rs 1,000 crore, spanning maturities from 2029 to 2036. The papers cleared at cut-off prices between 99.63 and 100.23, translating into yields ranging from 6.67% to 7.32%.
Punjab raised Rs 2,000 crore via a 12-year issuance at 7.57%, while Rajasthan borrowed Rs 5,000 crore through three tranches of 13, 16 and 26 years, with yields between 7.46% and 7.56%.
Tamil Nadu mobilised Rs 3,000 crore, including a 30-year bond at 7.44% and a Rs 1,000 crore re-issue of its 2035 paper priced at 99.93, yielding 7.27%. Telangana spread its Rs 4,000 crore fundraising across four ultra-long tenors of 27 to 33 years, with yields capped at 7.52-7.53%.
Uttarakhand tapped the market for Rs 1,500 crore through a 7-year issuance at 7.30%, while West Bengal raised an equal Rs 1,500 crore at 7.56% for a 20-year maturity.
The cut-off yields reflected steady borrowing costs for states despite a heavy supply calendar in the second half of the fiscal.