19 states raise Rs. 26,390 crore through bonds auction

New Delhi [India], Nov 8 : While releasing the results of auctions of 4/5/6/10 years state development loans (SDLs) of the state governments, the Reserve Bank of India in its statement has announced that nineteen states including Andhra Pradesh, Assam and Gujarat will raise Rs.

26,390 crore through bond auction. The notified amount for the auction by the 19 states was Rs. 25,190 crore, but Andhra Pradesh, Tamil Nadu and Uttar Pradesh retained an additional Rs. 300 crore, Rs. 500 crore and Rs. 400 crore, respectively. In the non-competitive bid segment, 147 bids worth Rs. 1,034.45 crore were received and all were accepted. The states which auctioned the bonds are Haryana, Himachal Pradesh, Jharkhand Karnataka and Kerala, among others.

The central government issues both treasury bills and bonds or dated securities while state governments issue only bonds or dated securities called SDLs.

The non-competitive bidding scheme has been introduced in the state government securities from August 2009.

Source: ANI