New Delhi [India], July 9 (ANI): Seven major Indian states raised a total of Rs 13,300 crore in the latest round of auction of State Government Securities (SGS), according to the data released by the Reserve Bank of India (RBI).

All participating states accepted the full amount they had notified for the auction.

Madhya Pradesh led the fundraising drive, mobilizing Rs 4,800 crore through two securities. The state offered the highest yields in the auction, 7.14 per cent on a 16-year security and 7.15 per cent on an 18-year security.

Following Madhya Pradesh, Maharashtra raised a substantial amount of Rs 4,000 crore. The state floated two securities with 20-year and 21-year tenors, both offering a yield of 7.14 per cent.

Bihar, on the other hand, raised Rs 2,000 crore at the lowest yield in this round of auction. The state offered a 10-year security at 6.88 per cent, which was the most economical in terms of interest cost.

Other participants in the auction included Haryana, Jammu and Kashmir, Mizoram, and Telangana. Haryana raised Rs 1,000 crore with a 16-year bond at a cut-off yield of 7.12 per cent.

Jammu and Kashmir and Mizoram both offered 15-year bonds with yields of 7.14 per cent, raising Rs 400 crore and Rs 100 crore respectively.

Telangana issued a 30-year bond, raising Rs 1,000 crore at a yield of 7.13 per cent, marking the longest tenor among all the issuances in this auction.

The RBI conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs.

The data showed that investor demand remained strong across different tenors, and all states managed to raise their intended amounts without any under-subscription.

These auctions are a key way for states to fund infrastructure and development projects while maintaining fiscal discipline under the broader macroeconomic framework set by the central bank. (ANI)