- 9 States raised Rs 13,500 crore through state development loans at the first auction of the second quarter, which is nearly 4% higher than the indicated amount.
- Gujarat accepted an additional Rs 500 crore while the remaining eight states borrowed in line with the amount indicated in the auction.
- As per analysis overall issuance is 9.4% lower compared to the earlier year.
- As of now 19 states raised Rs 1,23,700 crore which is nearly 22% lower compared to the earlier year.
- In addition to that distribution between the G-secs and SDLs widened to 42 bps as the benchmark rates for the Centre declined to 7.39%.
- This has happened due to recently levied cesses on domestic sales of crude and export of fuels and increased the import duty on gold.
- The spread between the weighted average 10-year SDL and 10-year G-sec yield increased to 43 bps from 38 bps.
Question:
Q.1 As per ICRA analysis, borrowing cost for the states continues to remain at Which of the following percentage?a. 6.2%
b. 7.9%
c. 8.2%
d. 7.4%
