Home > Business > PTI > Report
Govt mops up Rs 33,000 crore in a month
May 06, 2003 12:51 IST
After overshooting its borrowing target last fiscal, Centre is again on a fund raising spree, mopping up Rs 33,000 crore (Rs 330 billion) from the market in one month, while states plan to raise Rs 7,000 crore (Rs 70 billion) next fortnight.
Centre's gross borrowing till May five was higher by Rs 5,000 crore (Rs 50 billion) compared to Rs 28,000 crore (Rs 280 billion) raised during the same period a year ago.
"During the fortnight, RBI conducted two twin auctions aggregating Rs 16,000 crore (Rs 160 billion) as per auction calendar. Besides, an additional Rs 5,000 crore (Rs 50 billion) was raised through private placement with RBI," PNB Gilts said in a report on Tuesday.
Centre raised Rs 30,000 crore (Rs 300 billion) through dated securities and another Rs 3,000 crore (Rs 30 billion) through treasury bills till first week of May.
After redeeming securities worth Rs 9,500 crore (Rs 95 billion), the Centre's net borrowing was at Rs 23,500 crore (Rs 235 billion) so far in this fiscal, which was slightly lower than Rs 25,750 crore (Rs 257.50 billion) raised during the same period in 2002-03.
States, meanwhile, plan to raise Rs 7,000 crore (Rs 70 billion), with a green-shoe option of 30 per cent additional borrowing through 10-year papers on May 12.
Referring to the 0.25 per cent bank rate cut by RBI, PNB Gilts said security prices declined by 50-80 paise and the yield on 10-year benchmark paper moved up by 0.10 per cent to 5.97 per cent.
"Soon buying support aided by comfortable liquidity surfaced as the 10-year paper closed at 5.94 per cent on the day RBI announced its policy," it said.
© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
|