 "Govt plans to borrow Rs 3.9 trillion via treasury bills in Q4FY25")
The government plans to borrow Rs 3.9 trillion through the issuance of treasury bills (T-bills) in the last quarter of the current financial year. The amount will be raised over 13 weeks, with Rs 1.68 trillion allocated to 91-day treasury bills (DTBs), Rs 1.28 trillion to 182-day DTBs, and Rs 98000 crore to 364-day DTBs.
Market participants said that the gross borrowing amount was higher than expected.
“We were expecting a lower number, some people were looking at borrowing cuts in the last quarter,” said a dealer at a state-owned bank.
Weekly borrowing through issuance of Treasury Bills in the last quarter is expected to be Rs 28,000 crore for seven weeks, and Rs 33,000 crore for six weeks.
“If we consider competitive and non-competitive issuance, it is on the higher side but purely depends on how much the non-competitive bids are in the final quarter. On a net basis, competitive plus non-competitive net supply will end up being higher than what was implied in the budget,” said Gaura Sen Gupta, chief economist at IDFC First Bank.