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MUMBAI: At the weekly auction of government securities held on Friday, the central government borrowed ₹24,000 crore through securities carrying tenure of two years, five years, 14 year and 30 years, of which the two-year security was new, Care Ratings said.
“The notified amount of the auction was raised for the four securities. For the last 10 weekly auctions, the notified amount of the auction was raised with no devolutions on primary dealers, nor was the green shoe (over subscription) option exercised," it said.
Total market borrowings by the central government during 9 April-26 November of FY22 is ₹8.94 trillion, 6% less than that in the corresponding period of FY21. The amount raised so far in FY22 is 74% of the total budgeted borrowing limit of ₹12.05 trillion for the fiscal year. Total devolvement to the primary dealers so far in FY22 is ₹0.76 trillion, which is 8.5% of the total borrowings.
The quantum of over-allotment so far in FY22 totalled ₹0.60 trillion or 6.7% of the total borrowings.
According to Care Ratings, the 14- year security accounts for the largest share of borrowings at 21% of the total so far, the current financial year. It is followed by the 10-year security that has a share of 19% and 71% of the borrowings carry a tenure of less than 15 years. The long-term borrowings--30 and 40 yearsaccount for around 30% of the borrowings.
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