Muthoot Finance has sold a gold loan portfolio worth Rs 725 crore to Asset Reconstruction Company of India (Arcil), marking the first time a lender has sold such a portfolio to an asset reconstruction company. Muthoot Finance did not take a significant hit on the sale as the value of gold has appreciated.
Eight states raised Rs 9,600 crore through state government securities (SGS) on Tuesday, which is 13.6 per cent higher than the amount indicated for this week in the auction calendar, according to Aditi Nayar, the chief economist at Icra Ratings.
On an annualised basis to the week, the states have drawn down 15.4 per cent more than what they had drawn in the same period last fiscal at Rs 19,500 crore.
The borrowing cost for Indian states has increased by 10 basis points to 7.56% at the first weekly debt auction of the third quarter. This is the highest rate in the past 23 weeks. Despite a decline in the average tenor to 13 years, the weighted average cost has risen. Additionally, the spread between the cut-off of 10-year state bonds and the new 10-year G-Secs yield has also increased slightly.