BBN Bureau
Total borrowings in Q4 will reach Rs3000 cr
THIRUVANANTHAPURAM/March19-2022:Â Kerala will borrow Rs2000 crore by issuing 12-year state development loans (SDLs) at the auction to be conducted by the Reserve Bank of India (RBI) on March 22.
Thus will be the first market borrowing after the Finance Minister KN Balagopal presented his full budget for 2022-23.
The previous borrowing by the state was on February 28, when the state borrowed Rs1000 crore though it had planned to go for Rs1500 crore if the yield (interest) worked out favourably, which obviously didn’t.
With the borrowing on March 22, the total funds raised in the fourth quarter through the issue of SDLs will aggregate Rs3000 crore, still way behind the indicated amount of Rs6408 crore.
Most states have not been adhering to the auction calendar and so hasn’t Kerala too.
The way Kerala’s participation has been progressing in the SDL auction, it’s unlikely that Kerala’s borrowings will reach the amount targeted for the fourth quarter at Rs6408 crore, as hardly a week will be available in the fourth quarter that closes on March 31.
