Indian states mobilised Rs 14,900 crore through State Development Loan auctions on September 9, marginally below the Rs 15,300 crore on offer after Nagaland accepted no amount in its 10-year security.
Borrowings were spread across four- to twenty-year tenors, with cut-offs largely between 6.74% and 7.52%, indicating steady demand amid a stable rate backdrop.
Bihar raised Rs 6,000 crore across three lines at 7.02% (5-year), 7.45% (9-year), and 7.52% (11-year), while Goa garnered Rs 100 crore via an 11-year note at 7.48%. Haryana completed Rs 1,500 crore split between 15- and 16-year papers at 7.47% and 7.51%, respectively, and Jammu & Kashmir mobilised Rs 300 crore at 7.51% for 20 years.
Madhya Pradesh collected Rs 4,000 crore, including Rs 1,500 crore each at 7.48% (17-year) and 7.50% (19-year), plus a Rs 1,000 crore re-issue of its 6.99% 2041 bond priced at Rs 95.07 to yield about 7.5201%.
Maharashtra raised Rs 3,000 crore across shorter tenors at 6.74% (4-year), 7.18% (8-year), and 7.24% (9-year). With Nagaland taking zero against a notified Rs 400 crore, the overall take settled just shy of the day’s target.
State Development Loans are bonds issued by state governments to fund fiscal deficits. They are managed by the RBI. Interest is typically paid semi-annually. SDLs often offer a yield premium over central government bonds.