New Delhi, Aug 3: The Centre has completed 48.5 per cent of its targetted borrowing of Rs 1,16,861 crore within the first four months of this fiscal. The Centre has mopped up Rs 56,683 crore so far, which is 6.69 per cent higher than the government borrowing of Rs 53.130 crore between April-July last year, PNB Gilts said in its latest report.Although the borrowing has been higher so far, the bank rate hike of one per cent and increase in CRR by 0.5 per cent last month has dampened sentiments in the debt market, it said.
"Despite comfortable liquidity, shorter tenor papers was undersubscribed on account of bearish sentiments due to bank rate and CRR hike," the Gilts report said.
In the last tranche of fund mop-up, the Reserve Bank of India raised Rs 2,500 crore in 12-year paper easily but its 4-year papers worth Rs 4,000 crore was under-subscribed and the apex bank could raise only Rs 455 crore, it said. Of the Rs 56,683 crore raised so far, the Centre mopped up Rs 40,500 crore through auction of dated securities, Rs 9,000 crore through private placement and Rs 4,500 crore through sale of T- bills.
The Centre's net borrowing amounted to Rs 35,026 crore, which is 45.9 per cent of the budgeted Rs 76,383 crore, it said. So far, the Centre has redeemed securities worth Rs 21,657 crore of the targetted Rs 40,478 crore.
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