- Thursday, April 25, 2024
By: Shubham Ghosh
THE states of India are expected to borrow a whopping Rupees 2.12 lakh crore (£22.3 billion) via bonds in the July-September period, the country’s central bank said on Friday (1).
The states are scheduled to raise Rs 62,640 crore (£6.59 billion) in July, Rs 81,582 crore (£8.58 billion) in August and Rs 67,330 crore (£7 billion)in September, the Reserve Bank of India (RBI) said in a release, Moneycontrol reported.
State debt auctions generally take place every Tuesday.
According to the central bank, it would try to conduct auctions in a “non-disruptive manner”, taking into account factors such as market conditions and others and evenly distribute the borrowings throughout the quarter.
The RBI also has the right to modify the dates and auction amount in consultation with the governments of the states and union territories.
On Monday (27), a Moneycontrol report said that the Indian states’ borrowing costs of Indian states are likely to go up in the coming weeks as the RBI’s rate-hike cycle becomes more entrenched.
Most money markets and experts expected the yield on the 10-year state development loan to rise above eight per cent in the near future, the report added.
