 "Compulsions of running a coalition may put pressure on the exchequer, say bond dealers")
Illustration: Binay Sinha
The central government plans to borrow up to Rs 2.60 trillion through the issuance of treasury bills in the second quarter of the current financial year, the Reserve Bank of India said in a release on Friday.
States and Union Territories also plan to borrow up to Rs 2.63 trillion through state government securities over the same period. The indicative borrowing for the quarter was along expected lines, said market participants.
“The borrowing calendars are along the expected lines,” said V R C Reddy, head of treasury at Karur Vysya Bank. “I don’t see any significant impact,” he added.
The Reserve Bank had revised the borrowing calendar of treasury bills for the previous quarter, cutting the borrowing by Rs 60,000 crore.
“This is a non-event; the borrowing amount was around what the market had expected,” said a dealer at a state-owned bank.
States and Union Territories had planned to borrow up to Rs 2.5 trillion during the April-June quarter.
First Published: Jun 28 2024 | 8:56 PM IST
