Mumbai: The Reserve Bank of India on Friday sold government papers worth Rs7,000 crore in its last but one auction before the end of the fiscal year in March. It was also the last auction before the central bank announces its quarterly policy review on 29 January.
Besides this sale, the Centre needs another Rs8,000 crore to complete its record borrowing of Rs4.51 trillion for the fiscal. None of the bonds, including Rs3,000 crore of a 10-year floating-rate bond, was ‘devolved’, a term used to describe unsold bonds that primary dealers, who underwrite such auctions, are mandated to purchase.
While the coupon of the floating rate bond was fixed for the next six months at 3.79%, investors paid Rs93 for each Rs100 bond.