PUBLIC DEBT MANAGEMENT QUARTERLY REPORT JANUARY-MARCH 2018

Transcription

1 PUBLIC DEBT MANAGEMENT QUARTERLY REPORT JANUARY-MARCH 2018 GOVERNMENT OF INDIA MINISTRY OF FINANCE BUDGET DIVISION DEPARTMENT OF ECONOMIC AFFAIRS JUNE

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3 CONTENTS Section Page No. Introduction 1 Macroeconomic Developments 1 2 Debt Management-Primary Market Operations 4 3 Cash Management 8 4 Trends in Outstanding Public Debt 10 5 Secondary Market 14 iii

4 Introduction The Public Debt Management Cell (PDMC), Budget Division, Department of Economic Affairs, Government of India has been publishing on its website a quarterly report, titled Public Debt Management-Quarterly Report from the third quarter of the fiscal year The previous reports were brought out by the Middle Office for Public Debt management from the fiscal year All the earlier reports are available on the website of Ministry of Finance ( This report pertains to the Q4 of the fiscal year, viz., Jan-March The report gives an account of the public debt management and cash management operations during the quarter, and attempts a rationale for major activities. The report also tries to provide detailed information on various aspects of debt management. While all attempts have been made to provide authentic and accurate information, it is possible that some errors might have crept in inadvertently. Readers may inform us of such errors, if any, and provide their valuable suggestions to improve the contents of this report at pdmc-dea@nic.in. iv

5 List of Tables, Charts and Statements List of Tables Table No. Title Page No. 1.1 Provisional estimates of National income: Growth Rates (%) CPI and WPI Inflation (Per cent) Merchandise trade during to Foreign Investment Inflows into India Fiscal Outcome during April-March (Provisional) Issuance of Dated Securities Primary issuances of Dated securities by Maturity Buckets during to Issuance of Treasury Bills Repayment and Issuance of treasury Bills during Jan-March Total Liabilities of the Central government Yield and Maturity of Dated securities of the Central government Maturity Profile of Outstanding Dated Securities of Central Government Ownership Pattern of Government of India Dated Securities Yield Spreads Transactions in Government securities Top-10 Traded Securities Maturity-wise Outright Trading Volume in G-Secs Category-wise Share of Total Outright Trading Activity in G-Secs 18 List of Charts Chart No. Title Page No. Chart 3.1 Outstanding Amount under Liquidity Adjustment Facility 9 Chart 5.1 Yield on 10-year Benchmark Security 14 Chart 5.2 Comparative G-Sec Yield Curve 15 Chart 5.3 Comparative Yields on T-Bills 16 List of Statements 1 Issuance of Dated Securities Q4 of FY Treasury Bills issued during Q4 of FY List of Dated Securities Outstanding at end-march Maturity Profile of Government Securities at end-march Calendar for Auction of Treasury Bills during April-June Calendar for Auction of G-Secs during April-September v

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7 Section 1 Macroeconomic Developments 1.1 India s real GDP at prices in the Q4 of registered a growth rate of 7.7 per cent, while the growth rate of GVA was 6.5 per cent in same period, as per data released by the Central Statistics Office. The growth rate of GDP at prices for , as per the provisional estimates, is estimated at 6.7 per cent, lower than 7.1 per cent in Real GVA growth rate was lower in , driven by deceleration in growth rates of agriculture and industrial sectors (Table 1.1). Table 1.1: Provisional Estimates of National Income: Growth Rates (%) Item At Prices At Current Prices GVA at basic prices GDP Private Final Consumption Expenditure Government Final Consumption Expenditure Gross Fixed Capital Formation Headline CPI inflation moderated during the quarter to 4.28 per cent (March 2018) as compared to 5.21 per cent for the month of December A similar trend was seen in the movement of Consumer Food Price Inflation (CFPI), as evident from the data in Table 1.2. Notwithstanding the moderation in CPI-based inflation during Q4 of FY 18, the retail inflation rates were higher than those in the corresponding period of The WPI inflation also eased to 2.47 per cent in March 2018 from 3.58 per cent in December However, both CPI and WPI inflation rates moved up in April Table 1.2: CPI and WPI Inflation (Per Cent) Month CPI CFPI WPI (All Commodities) January February March April

8 1.3 Industrial growth, as measured by the index of industrial production (IIP), recorded a marginally lower rate of growth at 4.3 per cent in as compared to 4.6 per cent in While there was a sharp deceleration in the rate of growth of mining sector (to 2.3 per cent in ), electricity generation growth slowed down to 5.4 per cent in (5.8 per cent in ). Manufacturing sector growth was marginally higher at 4.5 per cent in (4.4 per cent in ). The use-based classification reveals higher rates of growth in production of capital goods, infrastructure/construction goods and consumer non-durables in , while primary goods, intermediate goods and consumer durables recorded deceleration in their growth rates during the year. 1.4 Merchandise exports from India touched US$ billion in , registering a growth rate (y-o-y) of 9.78 per cent, while imports expanded by per cent to US$ billion during the year. Trade deficit widened to US$ billion in from US$ billion in Exports at US$ billion in April 2018 were up by 5.17 per cent while imports valued at US$ billion registered a growth rate (y-o-y) of 4.6 per cent, resulting in a trade deficit of US$ billion. There was a sharp rise of 41.5 per cent in oil imports to US$ billion in April 2018, reflecting the impact of an increase of 35.2 per cent in the global Brent prices in the month. The current account deficit (CAD) expanded to US$ 13.0 billion (1.9 per cent of GDP) in Q4 from US$ 2.6 billion or 0.4 per cent of GDP in Q4 of However, it was lower than US$ 13.7 billion or 2.1 per cent of GDP in Q3 of During , the CAD was higher at 1.9 per cent of GDP as compared with 0.6 per cent of GDP in Table 1.3: Merchandise Trade during to Amount in US $ billion Financial Exports Imports Trade Year Amount Growth Rate (%) Amount Growth Rate (%) Balance April

9 1.5 Net foreign direct investment inflows into India moderated to US$ billion in from US$ billion in Net FII investment inflows both in equity and debt instruments dipped to US$ 2.38 billion in Q4 of FY 18 from US$ 5.43 billion in Q3. However, net FII investment in India was higher at US$ 22.2 billion during as compared to US$ 7.8 billion in , even as these inflows remained volatile from the second quarter of Table 1.4: Foreign Investment Inflows into India Amount in US$ billion Item Foreign Direct Investment in to India FII Investment in India India s foreign exchange reserves stood at USD billion on March 31, The average nominal exchange rate of Rupee at per dollar appreciated by 4.07 per cent in over the corresponding nominal average exchange rate of in

10 Section 2 Debt Management - Primary Market Operations A. Government Finances 2.1 The gross fiscal deficit (GFD) of the Central Government for was revised upwards to 5,94,849 crore (3.5 per cent of GDP) from the budgeted level of 5,46,531 crore or 3.2 per cent of GDP for the year. During , the actual GFD of the Central Government was 5,35,618 crore or 3.5 per cent of GDP. 2.2 As per the provisional estimates, the GFD of the Central Government at 5,91,663 crore was almost close to the revised estimate for the FY 18. This was notwithstanding the fact that there was a shortfall in revenue receipts relative to the revised estimate of 15,05,428 crore for The details are given in Table 2.1. Table 2.1: Fiscal Outcome during April March (Provisional) (Amount in crore) Item RE April-Mar April-Mar (% of RE) April-Mar (% of RE) Revenue Receipts Tax Receipts Non-Tax Receipts Other Non-debt Receipts Total Expenditure Revenue Expenditure Capital Expenditure Revenue Deficit Primary Deficit Gross Fiscal Deficit Financing Market Loans* External Assistance Securities against Small Savings Others *:- Includes borrowings through treasury bills. Source: Controller General of Accounts (CGA) website; cga.nic.in B. Issuance Details 2.3 This section discusses the issuance details of market borrowings during Q4 of FY 18 and also during April-March

11 2.4 Gross and net market borrowings of the Central Government for FY18 were budgeted at 5,80,000 crore and 3,48, crore. On December 27, 2017, the Government made an announcement to raise additional market borrowing of 50,000 crore through dated Government securities in However, based on a review of revenue receipts and expenditure pattern, it was decided around mid-january 2018 to raise additional borrowing of only 20,000 during Q4 of FY 18. The gross and net borrowings were subsequently revised to 5,99,000 crore and 402,394 crore, when the Union Budget for was presented. During Q4 of FY18, the Government issued dated securities worth 67,000 crore taking the gross borrowings during FY 18 to 5,88,000 crore (98.2 per cent of RE) as compared to 5,82,000 crore (100.0 per cent of RE) in the corresponding period of FY 17 (Table 2.2). Table 2.2: Issuance of Dated Securities Amount in crore April Q4 FY As % of RE Item March RE FY 18 FY 17 Gross Amount 599,000 67, , Repayments 139,590 16, , Switches 42,984 15,968 42, Buyback 57,016 13,788 39, Net Issuance 402,394 36,325 3,92, Auctions held during Q4 of FY 18 were broadly in accordance with the pre-announced calendar (Table 2.3). During Q4 FY 18, 6 tranches of auctions were held for issuances of dated securities worth 67,000 crore. Around 61.2 per cent of total securities issued during the quarter were in the maturity bucket of years. There was no devolvement on PDs during Q4 FY 18. The Government also repurchased two securities (7.83% GS 2019 and 8.24% GS 2018), aggregating to 13, crore on March 15, There were two conversions during the month of March 2018; the first conversion was on March 8, 2018 of a security maturing in having total face value of 15,968 crore to longer tenor securities maturing in and ; and the second conversion was on March 22, 2018 of a security maturing in having total face value of 15,091 crore to a longer tenor security maturing in

12 Table 2.3 Primary Issuances of dated securities by Maturity Buckets during to Amount in crore 5-9 years years Years Years Total , % of Total H1 FY18 (Projected) % of Total H1 FY18 (Actual) 70, ,000 50,000 60, ,000 % of Total Q4 FY 18 (Actual) 18,000 41,000 4,000 4,000 67,000 % of Total H2 FY18 (Actual) % of Total FY (Actual) 121, ,000 74,000 86, ,000 % of Total * Till H1 FY 18, the proposed borrowing amount in the half-yearly calendar was indicated as a range for a particular maturity bucket. # From Oct 2017 onwards, the practice of indicating a range for borrowing through issuance of securities in different maturity buckets was discontinued and the Government introduced the right to exercise the green-shoe option of up to 1,000 crore in each maturity bucket, being indicated in the auction notification itself. 2.6 The gross amount raised through treasury bills (91-day, 182-day and 364-day treasury bills) during Q4 of FY 18 amounted to 2,48,561 crore while total repayments were 2,79,576 crore, resulting in net issuance of (-) 31,015 crore as compared with (-) 59,763 crore in Q3 of FY 18 (Table 2.4). The details of issuance of treasury bills during Q4 of FY18 are given in Statement 2. Table 2.4: Issuance of Treasury Bills* ( crore) Item RE Q4 FY 18 FY 18 FY DTB FY 18 As % of RE Gross Amount Repayment Net Issuance DTB Gross Amount Repayment Net Issuance DTB Gross Amount Repayment Net Issuance All T-Bills Gross Amount Repayment Net Issuance *:- Including amount raised through non-competitive route. 6

13 2.7 The tenor of new issuances is a function of acceptable rollover risk as well as market appetite for various maturity segments. During Q4 FY 18, the weighted average maturity (WAM) of new issuances moderated to years as compared to years in Q3 of FY18. The decline in the WAM was due to more than 80 per cent of issuances being in the 1-5 years and years maturity buckets. The weighted average yield (WAY) of issuances during Q4 of FY 18 was 7.34 per cent as against 7.04 per cent in Q3 of FY 18, reflecting hardening of yields during the quarter. During FY 18, WAY and WAM were 6.98 per cent and years as compared to 7.16 per cent and years in FY 17. 7

14 Section 3-Cash Management 3.1 Government s cash account is maintained with the RBI. The cash flow mismatches of the Central Government are largely managed through issuance of Treasury Bills, issuance of Cash Management Bills and access to the Ways and Means Advances whenever there is a cash deficit and auction of cash balances in the market (through RBI) and buy-back of securities from the market whenever there are cash surpluses. Further, the Reserve Bank conducts purchase/sale of G-Secs under Open Market Operations, whenever required, based on an assessment of prevailing and evolving liquidity conditions. 3.2 During Q4 of FY 18, the cash position of the Central Government remained comfortable and the Central Government did not resort to WMA during the quarter. 3.3 Liquidity conditions in the economy were comfortable in January 2018 but tightened during February-March 2018 (Chart 6). The net average liquidity absorption by the Reserve Bank under Liquidity Adjustment Facility (LAF) including MSF was 29,652 crore in January However, there was net average liquidity injection to the tune of 13,468 crore in February 2018 and 34,465 crore in March The Reserve Bank conducted additional variable rate repo operations for longer tenors on a weekly basis aggregating to 100,000 crore during March These were aimed at addressing additional liquidity demand and providing flexibility to the banking system in its liquidity management towards the end of March. On the policy front, the RBI decided to maintain status quo in the sixth Bi-Monthly monetary Policy statement for FY 18 keeping the policy Repo rate unchanged at 6.0 per cent while maintaining a neutral stance in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/-2 per cent, while supporting growth. Consequently, the repo rate under LAF continued to stand at 6.0 per cent, with both MSF and Bank rates remaining unchanged at 6.25 per cent. 8

15 Chart 3.1: Outstanding Amount under Liquidity Adjustment Facility (in crore) Jan Jan Jan Feb Feb Mar Mar The net amount mobilised through treasury bills (under competitive and noncompetitive routes) during Q4 of FY 18 turned negative, following the redemption amount being higher than that raised through the issuance of Treasury Bills during the quarter. Details of treasury bills, which were issued and matured in Q4 of FY 18, are given in Table 3.1. Date of Issue Table 3.1: Repayments and Issuance of Treasury Bills during Jan Mar 2018 (Amount in crore) Variation in Issued amount over Repayments (Competitive) Issued Amount (Competitive) Repayments 91 DTB 182 DTB 364 DTB 91 DTB 182 DTB 364 DTB 4-Jan Jan Jan Jan Jan Feb Feb Feb Feb Mar Mar Mar Mar Mar Mar Total Under Competitive Route Q4 91,000 42,000 27,994 91,000 45,000 43, Total Under Non-Competitive Route Q4 1,16, , , , , ,

16 Section 4 Trends in Outstanding Debt 4.1 The total liabilities (including liabilities under the Public Account ) of the Government, as per provisional data, increased to 76,94,940 crore at end-march 2018 from 75,66,215 crore at end-december 2017 (Table 4.1). This represented a quarter-on-quarter increase of 1.7 per cent (provisional) in Q4 FY 18 as compared with an increase of 2.4 per cent in Q3 of FY 18. At this level, the ratio of outstanding liabilities of the Central government to GDP worked out to 45.9 per cent at end-march Public debt accounted for 88.7 per cent of total outstanding liabilities at end-march 2018, with internal debt and external debt having shares of 82.5 per cent and 6.3 per cent, respectively. Item Table 4.1: Total Liabilities of the Central Government (Amount in crore) At end-march 2018# At end-dec 2017 Percentage variation in March 2018 over December Public Debt (1 + 2) 68,27,729 67,16, Internal Debt 63,44,730 62,59, (i) Cash Management Bills 5,327 (ii) 91-days Treasury Bills 1,38,726 2,07, (iii) 182-days Treasury Bills 86,872 73, (iv) 364-days Treasury Bills 1,59,685 1,34, (v) 14-days Treasury Bills 1,51,038 1,49, (vi) Market Loans 50,70,745 50,25, (vii)marketable securities issued in 53,818 59, conversion of special securities (viii) Special Securities issued to 80,000 0 PSBs (ix) Compensation and other 65,439 61, bonds 1 (x) Sovereign Gold Bonds 6,664 6, (xi) Securities against small savings 4,27,375 4,30, (xii) Securities issued to International Financial Institutions 1,04,370 1,04, External Debt 4,82,998 4,56, Public Account Liabilities 8,67,211 8,49, Total Debt/liabilities (1+2+3) 76,94,940 75,66, Includes special securities issued against securitisation of balances under POLIF. 10

17 Yield on Primary Issuances of G-Secs and Maturity of Outstanding Stock of Market Loans 4.2 The weighted average yield of primary issuances during Q4 FY 18 increased to 7.34 per cent from 7.04 per cent in Q3, indicating further hardening of G-Sec yields in Q4 (Table 4.2). The weighted average coupon of outstanding government debt stock was slightly lower at 7.85 per cent at end-march 2018 (7.87 per cent at end-december 2017). The weighted maturity of issuances during Q4 of FY 18 was years as there were fewer issuances of longer tenor securities during the quarter. The weighted average maturity of outstanding stock of dated securities was years as at end-march 2018 (10.70 years at end-december 2017). Table 4.2: Yield and Maturity of Dated Securities of Central Government Year Issues during the year Outstanding Stock* Weighted Average Yield (%) Weighted Average Maturity (years) Weighted Average Coupon (%) Weighted Average Maturity (years) Q Q Q Q *As at end of period. 4.3 The proportion of debt (dated securities) maturing in less than one year at 3.18 per cent at end-march 2018 was almost close to its previous quarter level. However, the proportion of debt maturing within 1-5 years was lower at per cent at end-march 2018 (24.22 per cent at end-december 2017). Accordingly, debt maturing in next five years accounted for per cent of total outstanding debt at end-march The proportion of outstanding debt maturing in less than 10 years, however, was marginally higher at per cent while the share of debt maturing in more than 10 years was almost close to its previous quarter s level. 11

18 The change in composition of debt in terms of various maturity buckets reflects the maturity structure of securities issued during Q4 of FY18 as well as the maturity dynamics of outstanding securities. Overall, 26.2 per cent of outstanding stock has a residual maturity of up to 5 years at end-march 2018, which implies that over the next five years, on an average, 5.2 per cent of outstanding stock needs to be repaid every year (Table 4.3). Thus, the rollover risk in debt portfolio continues to be low. Table 4.3: Maturity Profile of Outstanding Dated Securities of Central Government (Amount in crore) Maturity Buckets (Residual Maturity) End-Dec 2017 End-March 2018 Less than 1 Year 1,59, ,63,200 (3.14) (3.18) 1-5 Years 12,31, ,77,735 (24.22) (22.98) 5-10 Years 15,89, ,46,828 (31.26) (32.14) Years 14,39, ,53,688 (28.31) (28.57) 20 Years and above 6,64, ,83,002 (13.07) (13.33) Total 50,85, ,61, Note: 1. Figures in parentheses represent per cent to total. 12

19 Holding Pattern 4.4 The holding pattern of Central Government securities indicates an improvement in the share of commercial banks from 39.7 per cent in end-june 2017 to 40.4 per cent in end- September 2017 and further to 42.7 per cent in end-march The share of provident funds also improved during the quarter ended March 2018 (Table 4.4). Table 4.4: Ownership Pattern of Government of India Dated Securities (Per Cent of Outstanding Dated Securities) Category Sep. Dec. March Jun Sep Dec March 1. Commercial Banks Non-Bank PDs Insurance Companies 4. Mutual Funds Co-operative Banks Financial Institutions Corporates FPIs Provident Funds RBI Others Total

20 Yield (%) Section 5 Secondary Market A. Government security yields 5.1 G-Sec yields generally showed a hardening trend during Jan-Feb 2018, attributable to an increase in CPI for December 2017 to 5.21 per cent (4.88 per cent for November 2018), subdued buying interest on the part of banks (to reduce valuation losses) and also of insurance companies (reduced issuances of long-term bonds by the Government during Q4), and uptrend in the US bond yields. However, the G-Sec yields softened somewhat during March 2018, following decline in both CPI and WPI for February 2018, buy-back of G-Secs by the Government, which provided some support to the market. The market response was positive to the issuance of borrowing calendar for H1 of with features like lower level of borrowing during H1, tilt towards issuance of short-tenor securities/floating rate bonds/inflation-indexed bonds on the one hand and long-term securities in the maturity bucket of years and longer than 20 years on the other and expected increase in the contribution of NSSF collections to financing of gross fiscal deficit (GFD) during the current fiscal year. The yield on new 10-year benchmark G-Sec (7.17% GS 2028), which was auctioned for the first time on January 8, 2018, closed higher at 7.40 per cent on March 28, 2018 (Chart 5.1) Chart 5.1: Yield on 10-year Benchmark G-Security 5.2 G-Sec yields were broadly higher up to 18 years tenors at end-march The yield spreads, however, narrowed down in Q4 (Table 5.1 and Chart 5.2). 14

21 Yield (%) Table 5.1: Yield Spreads (bps) Jan-Mar 2017 Oct-Dec 2017 Jan-Mar years-1 year years-10 years years-1 year % 7.32% 6.82% 6.32% 5.82% Chart 5.2: Comparative G-Sec Yield Curves Tenor (yrs) YTM Mar 31, 2017 YTM Dec 31, 2017 YTM Mar 31, The liquidity in the system was in deficit mode during February-March However, there was an improvement in market sentiments towards the close of the month, which contributed to softening of yields. The yield on 91-day T-Bills softened by 9 bps to 6.11 per cent on Mar 28, 2018 from 6.20 per cent on Dec 31, 2017 while yields on 182 and 364-day T-Bills hardened marginally by 2 bps and 1 bps, respectively. The trend was also reflected in the yield spreads between T-bills of different maturities as at end-march 2018 as compared to those prevailing at end-december 2017 (Chart 5.3). 15

22 Yield (%) Chart 5.3: Comparative Yields on T-Bills 6.32% 6.12% 5.92% 5.72% 5.52% 5.32% Tenor (days) Mar 31, 2017 YTM (%) Dec 31, 2017 YTM (%) Mar 31, 2018 YTM (%) B. Trading Pattern of Government Securities 5.4 The total outright volume of trading in G-Secs during Q4 of FY 18 at lakh crore recorded a fall of 19.4 per cent over that of lakh crore during Q3 (Table 5.2). The trading volumes in Central G-Secs and T-Bills were lower by 20.8 per cent and 21.4 per cent, respectively while there was an improvement in trading activity in SDLs by 18.3 per cent during the quarter ended Mar The annualised outright turnover ratio 2 for G-Sec for Q4 of FY 18 fell to 2.95 in Q4 from 3.77 during Q3. The annualised total turnover ratio 3 (outright plus the repo transactions) also fell to during Q4 of FY18 from in the previous quarter. Table 5.2: Transactions in Government Securities (Volume in Crore) Outright Repo Period G-Sec T-Bills SDL Total G-Sec T-Bills SDL Total Jan-Mar 17 25,72,437 3,00,402 1,58,807 30,31,646 23,09,653 6,61,235 99,290 30,70,178 Share(%) 85% 10% 5% 73% 21% 6% Apr-June 17 26,64,380 2,94,369 1,53,174 31,11,923 21,86,206 6,37,634 1,96,874 30,20,714 Share (%) 86% 9% 5% 72% 21% 7% Jul-Sep 17 28,98,617 3,38,696 1,92,116 34,29,429 22,84,487 7,91,658 2,26,218 33,02,363 Share (%) 85% 10% 6% 69% 24% 7% Oct-Dec 17 23,80,951 2,08,817 1,00,075 26,89,843 23,72,830 6,58,436 2,74,428 33,05,694 Share (%) 89% 8% 4% 72% 20% 8% Jan-Mar 18 18,86,169 1,64,173 1,18,345 21,68,686 22,88,259 5,97,170 2,66,089 31,51,518 Share (%) 87% 8% 5% 73% 19% 8% 2 Annualised Outright Turnover Ratio = 4*[Quarterly Outright Volume *2/(Average of outstanding stock)] 3 Annualised Total Turnover Ratio = 4* [(Quarterly Outright Volume *2 + Quarterly Repo Volume * 4) / (Average of outstanding stock)] 16

23 5.5 Central Government dated securities continued to account for a major share of total trading volumes, with a share of 87 per cent and 72.6 per cent in total outright trading and repo volumes in value terms, respectively during Q4 of FY The top-10 traded securities accounted for 86.2 per cent of the total outright trading volume during Q4 (78.1 per cent during Q3 FY 18), reflecting continued concentration of trading in a few securities. The share of top-3 traded securities increased to 77.3 per cent during Q4 from 70.7 per cent during Q3 (Table 5.3). Table 5.3 Top-10 Traded Securities (in Crore) Jan-Mar 2017 Oct-Dec 2017 Jan-Mar 2018 Security Volume Security Volume Security Volume 6.97% G.S. 6,67, % GS 10,03, % GS 5,43, % G.S. 6,36, % GS 6,53, % GS 4,86, % G.S. 4,82, % GS 2,43, % GS 4,27, % G.S. 1,10, % GS 42, % GS 46, % G.S. 64, % GS 35, % GS 30, % G.S. 62, % GS 35, % GS 27, % G.S. 44, % GS 29, % GS 19, % G.S 31, % GS 19, % GS 16, % G.S. 30, % GS 19, % GS 14, % G.S. 26, % GS 17, % GS 14,040 TOTAL 21,57,633 Total 21,00,249 16,26, The trend in outright trading volumes in G-Secs under different maturity buckets is given in Table 5.4. Table 5.4: Maturity wise Outright Trading Volumes in G-Secs (in Crore) Maturity Jan-Mar 2017 Oct-Dec 2017 Jan-Mar <3 Years 91,827 70,399 84,535 2,14, Years 3,55,658 2,56,256 2,29,192 12,36, Years 14,06,383 10,55,539 10,14,881 45,33,623 > 10 Years 7,18,569 9,98,757 5,57,561 38,44,842 Total 25,72,437 23,80,951 18,86,169 98,30, The maturity distribution of secondary market transactions in G-Secs as presented above shows that trading improved in short (less than 3 years and 3-7 years) and medium term 17

24 (7-10 years) maturity buckets during Q4 vis-à-vis that in Q3. The share of 10 years and above maturity buckets saw a sharp decline in trading volumes to 30 per cent during Q4 of FY 18 from 42 per cent in Q3. The share of below 3-year maturity bucket continued to remain the lowest at 4.48 per cent of the total trading volume in Q4 (2.96 per cent in Q3 of FY 18). 5.9 Foreign banks were the dominant trading players in the secondary market during January-March 2018 with a share of 26.7 per cent in the total outright trading activity in G-Secs (Table 5.5), closely followed by private sector banks (20.3 per cent). On a net basis, private sector banks, insurance companies, foreign banks, cooperative banks and Others were the net buyers while Financial Institutions, Mutual Funds, PDs and PSBs were the net sellers in the secondary market. Table 5.5: Category-wise Share of Total Outright Trading Activity in G-Secs (in %) Oct-Dec 2017 Jan-March 17 Jan-Mar 18 Category Buy Sell Buy Sell Buy Sell Co-op Banks FIs Foreign Banks Ins. Cos MFs Others Primary Pvt Banks PSBs Total

25 Name of Stock Statement 1: Issuance of Dated securities During Q4 FY Date of Auction Date of Issue Amount Raised 6.57% GS 2033 $ 7.06% GS 2046 $ 29-Dec- 29-Dec- 01-Jan Jan % GS 2022 $ 05-Jan Jan % GS 2028 # 05-Jan Jan % FRB 2024 $ 12-Jan Jan % GS 2031 $ 12-Jan Jan % GS 2033 $ 12-Jan Jan % GS 2051 $ 12-Jan Jan % GS 2022 $ 19-Jan Jan % GS 2028 $ 19-Jan Jan M 6.18% FRB 2024 $ 25-Jan Jan M 7.17% GS 2028 $ 25-Jan Jan M 6.18% FRB 2024 $ 09-Feb Feb M 7.17% GS 2028 $ 09-Feb Feb M Gross Nominal Amount Raised Weighted Average Yield 7.34 Weighted Average Maturity Devolve ment on PDs Cut off price Cut off yield (%) (Amount in Rs Crore) Date of Maturity Residual Maturity (Years) Dec Oct Dec Jan Nov Sep Dec Nov Dec Jan Nov Jan Nov Jan $ - Reissues/Price based auctions # New Issue/Yield Based Auction M-Multiple Price based auction 19

26 Name of Security Date of Auction Statement 2: Treasury Bills Issued During Q4 FY Date of Issue Competitive amount raised Non-Competitive amount raised (Amount in Rs crore) Gross Nominal amount raised Cut off Yield (%) 364 DTB 3-Jan-18 4-Jan DTB 10-Jan Jan DTB 17-Jan Jan DTB 24-Jan Jan DTB 31-Jan-18 1-Feb DTB 7-Feb-18 8-Feb DTB 14-Feb Feb DTB 21-Feb Feb DTB 28-Feb-18 1-Mar DTB 7-Mar-18 8-Mar DTB 14-Mar Mar DTB 21-Mar Mar DTB 27-Mar Mar DTB 3-Jan-18 4-Jan DTB 10-Jan Jan DTB 17-Jan Jan DTB 24-Jan Jan DTB 31-Jan-18 1-Feb DTB 7-Feb-18 8-Feb DTB 14-Feb Feb DTB 21-Feb Feb DTB 28-Feb-18 1-Mar DTB 7-Mar-18 8-Mar DTB 14-Mar Mar DTB 21-Mar Mar DTB 27-Mar Mar DTB 3-Jan-18 4-Jan DTB 10-Jan Jan DTB 17-Jan Jan DTB 24-Jan Jan DTB 31-Jan-18 1-Feb DTB 7-Feb-18 8-Feb DTB 14-Feb Feb DTB 21-Feb Feb DTB 28-Feb-18 1-Mar DTB 7-Mar-18 8-Mar DTB 14-Mar Mar DTB 21-Mar Mar DTB 27-Mar Mar

27 Statement 3: List of Dated Securities Outstanding at end-march 2018 Nomenclature Date of maturity Outstanding Stock (Rs Cr.) of which: MSS 7.83% GS Apr % GS Apr % GS Apr % GS 2018(Conv)] 25-Sep % GS Nov % GS Jan % GS Feb % GS Jun % GS 2019 (con) 12-Jun % GS Jul % GS Aug % GS 2020 (con) 02-Jan % GS Jan % GS Apr % GS May % GS Jun % GS Dec FRB Dec % GS Dec % GS Apr % GS May % GS May % GS Nov % GS Feb % GS May % GS Jun % GS Aug % GS 2022 (conv) 28-Aug % GS Sep % GS Dec % GS Apr % GS May % II GS Jun % GS 2023 (conv) 12-Jun % GS Nov % GS Dec IINSS -Cumulative 1.5% GS 25-Dec % GS Jun % GS Jul FRB Nov % GS Nov % GS May % GS Sep % GS 2025 (Conv) 25-Sep % GS Jan % GS Jul % GS Sep % GS Sep % GS Nov % GS Feb % GS May % GS Aug % GS Sep % GS Jan % GS GS 2028 (C Align) 25-Mar % GS Jun % GS Jun % GS Mar Contd. 21

28 Nomenclature Date of maturity Outstanding of which: MSS 7.88% GS Mar % GS May % GS Sep % GS Dec % GS Sep % GS Feb % GS Aug % GS Aug % GS Sep % GS Nov % GS Dec % GS Aug % GS Dec FRB Jan % GS Sep % GS Jun % GS Jan % GS Jul % GS Dec % GS Dec % GS Dec % GS Jun % GS Oct % GS Nov % GS Oct Total

29 Statement 4: Maturity Profile of Government Securities as on End-March 2018 Year of maturity Outstanding Stock (Rs crore) ,63, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 Total 5,124,453 23

30 Statement 5:Calendar for Auction of Treasury Bills during April June 2018 (Amount in Rs` crore) Date of Auction 91 Days 182 Days 364 Days Total April 4, ,000 4,000 4,000 15,000 April 11, ,000 4,000 4,000 15,000 April 18, ,000 4,000 4,000 15,000 April 25, ,000 4,000 4,000 15,000 May 2, ,000 4,000 4,000 15,000 May 9, ,000 4,000 4,000 15,000 May 16, ,000 4,000 4,000 15,000 May 23, ,000 4,000 4,000 15,000 May 30, ,000 4,000 4,000 15,000 June 6, ,000 4,000 4,000 15,000 June 13, ,000 4,000 4,000 15,000 June 20, ,000 4,000 4,000 15,000 June 27, ,000 4,000 4,000 15,000 Total 91,000 52,000 52,000 1,95,000 24

31 Statement 6: Calendar for Auction of G-Secs Bills during April - September 2018 ( April 1, 2018 to September 30, 2018). (Amount in Rs Crore) Sr. No. Week of Auction Amount Security-Wise allocation 1 April 2-6, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 1,000 crore v) 20 Years & Above for Rs 3,000 crore 2 April 9-13, ,000 i) 1-4 years for `Nil' i) years for Rs 4,000 crore ii) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 3 April 16-20, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 1,000 crore v) 20 Years & Above for Rs 3,000 crore 4 April 23-27, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 5 April 30 - May 4, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 1,000 crore v) 20 Years & Above for Rs 3,000 crore 6 May 7-11, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 7 May 14-18, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 1,000 crore 25

32 v) 20 Years & Above for Rs 3,000 crore 8 May 21-25, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 9 May 28 - June 1, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 1,000 crore v) 20 Years & Above for Rs 3,000 crore 10 June 4-8, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore v) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 11 June 18-22, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 12 June 25-29, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 13 July 2-6, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 14 July 9-13, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 26

33 15 July 16-20, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 16 July 23-27, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 17 July 30 - Aug 3, ,000 i) 1-4 years for Rs 2,000 crore ii} 5-9 years for Rs 3,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 18 Aug 6-10, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 19 Aug 13-17, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 20 Aug 20-24, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 21 Aug 27-31, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 22 Sept 3-7, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore 27

34 iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 3,000 crore 23 Sept 17-21, ,000 i) 1-4 years for Rs 2,000 crore iii) years for Rs 3,000 crore iv) years for Rs 2,000 crore v) 20 Years & Above for Rs 2,000 crore 24 Sept 24-28, ,000 i) 1-4 years for `Nil' iii) years for Rs 4,000 crore iv) years for Rs 2,000 crore Total 2,88,000 v) 20 Years & Above for Rs 3,000 crore 28