State Govt Market Borrowings

From Telangana to Gujarat, states compete fiercely for new-age investments

Over the past two years, states, have intensified their competition to attract particularly in new-age industries, such as mobile phone and laptop assembly, semiconductor manufacturing and packaging

Govt announces market borrowing of Rs 6.61 trillion in 2nd half of FY25

Amount, which is 47% of gross borrowing target, will be realised via 21 weekly auctions

Himachal's fiscal condition is a lesson for states in what not to do

Rising competitive populism among states could seriously undermine India's long-term potential

Budget 2024: State governments have stepped up capital expenditure

Devolution of central taxes among states has remained a contentious issue over cess

Market borrowings by Uttar Pradesh may surge 12% to Rs 5.73 trillion

State governments raise funds from the market to meet budgetary requirements by floating government securities (G-sec) and bonds bearing different maturities

Centre can't help if states empty coffers via tall poll promises: Shah

Union Home Minister Amit Shah on Saturday said the central government can't help the states which empty their treasuries after making unrealistic election promises. All states should prepare their budget taking into account development programmes and social welfare commitments, he said at an event here when asked about the allegation of discrimination against some states in the release funds by the Centre. The governments of West Bengal, Kerala and Karnataka recently held protests in the national capital alleging that they were not given their due share of funds, a charge refuted by the finance minister. Shah said in the white paper, tabled in Lok Sabha, Finance Minister Nirmala Sitharaman has given details about the funds given to the states. "The white paper has details of how much funds we have given to the states, how much more funds we have given than what Congress used to give to every state - be it BJP or opposition ruled," he said at the ET NOW Global Business Summit 2024.

Borrowing cost of states falls to 18-month low at 7.48% at latest auction

The borrowing cost of states declined to an 18-month low at 7.48 percent at the latest auction held on Tuesday. Since the first auction of the fourth quarter held on January 2, the average cut off of state government bond auctions was sniffing at a shade less than 7.8 per cent, which was a two-year high. At the latest auction held on Tuesday, 14 states raised Rs 26,700 crore which was 22 per cent lower than the indicated Rs 34,400 crore for this week in the fourth quarter auction calendar, according to data shared by rating agency Icra. The lower supply was partly on account of the upward revision in tax devolution in the revised estimates for FY24 by the Centre in the interim Budget. This may reduce the borrowing requirements of some of the states in the remainder of the fourth quarter of this fiscal. Reflecting the lower-than-indicated borrowing on Tuesday, the spread between the cut-off of the 10-year state debt and the 10-year G-Sec yield eased to 41 basis points from 49 basis

12 states raise Rs. 20,759 crore through auction, Tamil Nadu tops list

Tamil Nadu secured Rs 6,000 crore through two papers - Rs 3,000 crore through a 10-year paper with a cut-off yield of 7.66%, and Rs 3,000 crore through a 30-year paper with a cut-off yield of 7.56%

States govts borrowing cost falls to five-week low on lower supply

Lower-than-indicated supply of state government securities on Tuesday led to an 8 basis point fall in the borrowing cost, reducing it to a five-week low of weighted average cut-off at 7.36 per cent. As many as nine states raised Rs 12,400 crore, which was 26 per cent lower than the amount indicated in the auction calendar, from the market at an average rate of 7.36 per cent, down from 7.43 per cent in the last weekly auction. With the weighted average cut-off falling by 8 bps to 7.36 per cent, the spread between the cut-off of 10-year state debt and the G-sec yield declined to 29 bps from 33 bps last week, Icra Ratings said in a note. The fall in cut-off is also due to the dip in the tenor to 13 years from 14 years, tightening the clustered yields and inversion in parts of the yield curve.

Yield at state govt bonds auction eases by 16 bps; 4 states raise Rs 6K cr

This is only a third of the indicated amount of about Rs 18,900 crore. Tuesday was the last weekly auction of April 2023

State govt mkt borrowings up 8% YoY to Rs 7.6 trn with last auction of FY23

14 states, one UT raise Rs 41,200 cr, amount is 67% higher than that indicated for State Government Securities (SGS) for this week in the Q4FY23 auction calendar

Market borrowing cost for states remains elevated at 7.83%, says Icra

Market borrowing cost for the states remained high with the average yield hitting 7.83 per cent at the auctions held on Tuesday, which is a paltry 1 basis points lower than the last auction of state securities. Seven states raised Rs 10,700 crore at Tuesday's auction of state government securities (SGS), which is just about half of the Rs 20,800 crore indicated for the week. The weighted average cut-off slipped to 7.83 per cent from 7.84 per cent last week, despite the rise in weighted average tenor to 15 years from 13, Icra said in a note. However, the yield on 10-year G-secs declined by 4 basis points (bps) to 7.40 per cent while the weighted average cut-off for 10-year state bonds slipped only by 1 bps to 7.82 per cent. Accordingly, the spread between the weighted average cut-off of 10-year state bonds and the 10-year G-sec yield rose to 42 bps from 39 bps. The reason for the massive fall in the draw-down is because big borrowers like Haryana, Karnataka, Maharashtra, Tamil Nadu,

States' market borrowing cost falls sharply by 11 basis points to 7.72%

After rising steeply for a month, the cost of market borrowing for states declined sharply on Tuesday with the weighted average cut-off falling by 11 basis points to 7.72 per cent from 7.83 per cent last week. The cost declined despite a rise in the weighted average tenor to 12 years from 11 years last week, according to an analysis by Icra Ratings. Nine states raised Rs 16,900 crore through state government securities (SGS) on Tuesday -- 10 per cent lower than the Rs 18,700 crore indicated for this week in the third quarter auction calendar. So far this year, bond sales by states are down 8 per cent over the year-ago period. The weighted average cut-off of states eased by 11 bps (basis points) to 7.72 per cent despite a rise in weighted average tenor to 12 years from 11 years and the 10-year benchmark G-sec yield remaining stable at 7.43 per cent in the auction on this Tuesday from last Tuesday. The weighted average cut-off of 10-year state bonds also declined by 10 bps to 7.73 pe

States borrowing cost rises for third week, jumps 12 bps to 7.77%

At the latest auction of debt, 10 states raised Rs 19,500 crore on Monday, drawing down the full amount indicated for this week.

States borrowing cost continues to fall for 4th week, down 6 bps to 7.46%

The borrowing cost for the states fell for the fourth consecutive week as the weighted average cut-off eased 6 basis points (bps) to 7.46 per cent at the weekly auctions on Tuesday. Ten states have raised Rs 10,500 crore at the latest auction of state development loans, which is 1.5 per cent higher than indicated in the borrowing calendar, a first in a couple of years. Since the outbreak of Covid, states were borrowing much lower than indicated amount thanks to higher grants from the central government. last week the Centre released Rs 58,300 crore as tax devolution for July, up from Rs 47,600 crore each in the first quarter. Additionally, the Centre had approved Rs 31,500 crore of special assistance for capital expenditure to 10 states during that month. The weighted average cut-off has eased by 6 bps to 7.46 per cent from the past week, despite the weighted average tenor increasing to 14 years from 13, and the spread between 10-year state debt and the 10-year G-Secs (Government ..

RBI pegs state govt market borrowing for July-Sept at Rs 2.1 trillion

Actual borrowings and state-wise breakup will be intimated 2-3 days prior to auction day; RBI to try and ensure auctions are held in non-disruptive manner considering mkt conditions

State market borrowings down 23.7% YoY in Q1FY23 on strong cash flows

Icra said a comfortable cash flow position of the state governments was due to a back-ended release of tax devolution to the states in FY2022

Borrowing costs rise sharply for states on Ukraine-led geopolitical strife

Cut- off for state Development Loans up by 19 bps this week over auction held last week

Borrowing by state govts 11% lower than last year: CARE Ratings

25 states, 1 UT have raised Rs 2.92 trn, against Rs 3.27 trn by 27 states, 2 UTs last fiscal

Tamil Nadu, India's 2nd-most industrialised state, in favour of debt recast

The states' inflated debt sale schedule alludes to that possibility. They are scheduled to borrow as much as Rs 1.78 trillion ($25 billion) from the market in the April-June quarter