Limited Downside Expected In Actual State Government Finances Issuance In Q3: ICRA

ICRA Research Report

The Reserve Bank of India has pegged the gross issuance of State Government Securities at Rs 2.4 trillion for Q3 FY24, a YoY expansion of ~31%. Uttar Pradesh, Karnataka, Maharashtra, and West Bengal, accounting for around half of the total indicated amount for Q3 FY24.

Additionally, the combined SGS issuance of five states, which have Assembly Elections scheduled in November/December 2023, is equivalent to a fifth of the total indicated amount of Rs 2.4 trillion for Q3 FY24.

Even if the disbursal of the capex loan by the Government of India picks up in Q3 FY24, we broadly expect the issuance to be in line with the indicative amount.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.