9 states raise Rs 13,500 crore via auction of bonds, Punjab tops list

Nine states on Monday raised Rs 13,500 crore through the auction for state government securities, a marked increase from the Rs 5,250 crore raised by five states last week.

Data from the Reserve Bank of India (RBI) revealed that Punjab raised the highest amount of Rs 4,000 crore through three bonds.

The state raised this sum through three papers – Rs 1,500 crore through a 12-year paper with a cut-off yield of 7.52 per cent, Rs 1,500 crore through a 13-year paper with a cut-off yield of 7.51 per cent, and Rs 1,000 crore through a 14-year paper with a cut-off yield of 7.49 per cent.

Meanwhile, the yield spread between the 10-year State Development Loans (SDLs) and the benchmark 10-year government bond stood between 29-30 basis points.