The Reserve Bank of India (RBI) accepted ₹27,083.882 crore in state government securities Monday, leaving ₹1,966.118 crore of a ₹29,050 crore offering unallocated after some issuers received less than proposed.
No amount was accepted for Chhattisgarh’s proposed reissues of its 2036 and 2042 securities, offered at ₹900 crore and ₹600 crore, respectively. Bihar had ₹1,533.882 crore accepted from the ₹2,000 crore proposed for its 18-year security, at a cut-off yield of 8.10%. The RBI accepted the full ₹2,000 crore proposed for Bihar’s 2051 reissue, at 8.0816%. The results gave no reason for Chhattisgarh’s zero acceptances or Bihar’s partial acceptance.
Among other issues, Gujarat’s new 10-year security had a cut-off yield of 7.82%, and Haryana’s new four-year security had a yield of 7.61%. Haryana’s reissued 2048 security had a cut-off yield of 8.1476%. The results also listed cut-off prices for reissued securities.
At the Oct. 19 state securities auction, ₹23,016.418 crore was accepted from a ₹24,400 crore offer. The Nov. 9 auction had a larger accepted amount and a larger offer. The results did not give total bid volume, so the accepted amount alone does not show how much investors sought to buy.
Bids for newly issued securities were assessed by yield, while bids for reissues were assessed by price. The RBI set the maximum yield or minimum price it would accept. Securities from the sale qualify for banks’ statutory liquidity ratio (SLR) holdings.
The RBI set Nov. 11 for successful bidders to pay, during banking hours in Mumbai or at its regional offices.
