Public Debt Management

Public Debt Management quarterly report JULY SEPTEMBER 2017 Government of India Ministry of finance Budget Division Department of economic affairs NOVEMBER 2017 www.finmin.nic.in I

CONTENTS Section Page No. Introduction 1 1 Macroeconomic Developments 2 2 Debt Management - Primary Market Operations 6 3 Cash Management 9 4 Trends in Outstanding Public Debt 11 5 Secondary Market 16 II

List of Tables and Charts List of Tables Table No. Title Page No. 1 Fiscal Outcome during July-September 2017-18 6 2 Issuance of Dated Securities 7 3 Primary Issuance by Maturity Buckets, Q2 of 2017-18 7 4 Issuance of Treasury Bills 8 5 Repayments and Issuance of Treasury Bills in July September 2017 10 6 Composition of Public Debt 11 7 Maturity and Yield of Central Government's Market Loans 12 8 Maturity Profile of Outstanding GoI Dated Securities 13 9 Ownership Pattern of Government of India Dated Securities 14 10 Transactions in Government Securities 18 11 Top 10 Traded Securities 19 12 Maturity Pattern of Outright Transactions 19 12(a) Share of various categories of participants in G-Sec trading 20 13 Category wise Buying and Selling 21 List of Charts Chart No. Title Page No. 1 Growth Rate in GDP at constant (2011-12) prices 2 2 Inflation Rate Based on WPI and CPI 3 3 Growth Rate in IIP 3 4 Monthly Exports and Imports 4 5 Foreign Investment Flow and Exchange Rate 5 6 Liquidity Infusion in the System 9 7 Holding Pattern of Outstanding Government Securities 14 8 Movement of 10-year G-Sec Yields 16 9 Government Bond comparative Yield Curve 16 10 Comparative Treasury Bill Yield Curve 17 11a Progressive Outright volume-instrument composition 18 11b Composition of Instruments in outright and repo volume 18 12a Maturity wise Trading Activity - July-Sept 17 20 12b Maturity wise Trading Activity -Apr-Jun 17 20 13 Category wise total 20 List of Statements Statement No. Title Page No. 1 Issuance of Dated Securities During Q2 of FY18 i 2 Treasury Bills Issued During Q2 of FY18 ii 3 List of Dated Securities Outstanding at end-sept 2017 iii 4 5 6 Maturity Profile of Government Securities at end-sept 2017 Calendar for Auction of Treasury Bills during Oct-December 2017 Calendar for auction of G-Sec during Oct 2017 Mar 2018 v vi vii III

Introduction The Middle Office for public debt management was set up in September 2008, in Department of Economic Affairs, Ministry of Finance, Government of India. With the objective of enhancing transparency of debt management operations, Middle Office, DEA began publishing on its website a quarterly report, titled Public Debt Management - Quarterly Report from the first quarter of the fiscal year 2010-11. The previous reports are available on the website of Ministry of Finance (http://finmin.nic.in/reports/public_debt_management.asp). This report pertains to the Q2 of the fiscal year 2017-18, viz., July-Sept 2017 (Q2 FY 18). 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, as indeed their valuable suggestions, at pdmc-dea@nic.in. 1

Section 1 Macroeconomic Developments 1.1 As per Central Statistics Organization (CSO) estimates, India s real GDP growth in Q1 (Apr Jun ) FY 18 (at constant price 2011-12) stood at 5.7 per cent, as against 6.1 per cent growth in Q 4 FY 17 (Chart 1). Correspondingly, Gross Value Addition (GVA) growth stood at 5.6 per cent in Q1 FY18 compared to 7.6 per cent observed in Q1 FY17. These numbers are reflective of the subdued performance of the Industrial sector, mainly manufacturing activity, as reflected by the IIP data and a slowdown in services growth. Of the sectors, agriculture output grew by 2.3 per cent, manufacturing grew by 1.2 per cent, and construction grew by 2.0 per cent in Q1 of FY over previous year same quarter. Growth in financial, insurance, real estate and professional services was estimated at 6.4 per cent. While real GVA was unchanged from the previous quarter, nominal GDP stood at its lowest level in 5 quarters at 9.3 per cent. 1.2 Headline CPI retail inflation in September 2017 came in at 3.28 per cent, unchanged from the revised estimate of 3.28 per cent for August 2017. Much below market expectation of 3.60 per cent, the deceleration was attributed to a decline in price pressures in the food and beverages component. Core CPI, however, rose higher to 4.61 per cent in September 2017 from 4.50 per cent a month ago as price pressures arising from the impact of rise in house rent allowances for the Central Government employees sustained. Food inflation, which accounts for about 47 per cent of the overall CPI basket, decelerate to 1.25 per cent in Sep 2017 compared to 1.52 per cent in August 2017 and 3.88 per cent in September 2016. The prices of fruits and vegetables observed disinflation while prices of pulses saw an upward movement of 0.60 per cent in September 2017 after 9 months of continued descent. The housing component with a weight of 10.07 per cent in CPI saw an increase of 0.97 per cent in Sep 2017 as compared to 1.28 2

per cent observed in the previous month although some slackening of the HRA impact was observed. Average CPI inflation rate during Q 2 FY 18 was at 3.0 per cent as compared with 2.2 per cent during Q1 of FY 18. WPI Inflation in Sep 2017 came in at 2.60 per cent as against 3.24 per cent in August. Deceleration in food prices contributed to this deflationary bias to the headline. On a cumulative basis, WPI stood at 0.97 per cent for FY 18 as compared to 3.44 per cent in the corresponding period in the previous year (Chart 2). 1.3 Industrial growth, as measured by index of industrial production (IIP) [base year 2011-12] registered 3.8 per cent rise in September 2017 as compared to 4.5 per cent rise in August 2017 (revised from 4.3 per cent). Though an upward momentum sustained across sectors, growth in manufacturing and electricity was at a lower rate on a sequential basis. Sequentially, September IIP grew by 0.82 per cent vis-à-vis 3.28 per cent growth seen the previous month and 1.46 per cent in the corresponding period last fiscal. Driven by a higher coal output, high growth in the mining sector positively impacted the headline IIP index. As per sectoral classification, mining (weight of 14.4 per cent) saw a y-o-y growth of 7.9 per cent, manufacturing (weight of 77.6 per cent) grew by 3.4 per cent and electricity (weight of 7.99 per cent) grew by 3.8 per cent in May 2017. Cumulatively, April-Sep 2017 IIP growth (y-o-y) stood at 2.5 per cent as compared to 5.8 per cent a year ago (Chart 3). As the impact of GST introduction eases, momentum in industrial production is expected to rebound. CSO periodically revises the base year of the macroeconomic indicators that include all-india Index of Industrial Production (IIP) the base of which also revised from 2004-05 to 2011-12 to not only reflect the changes in the industrial sector but to also align it with the base year of other macroeconomic indicators like the gross domestic product (GDP), wholesale price index (WPI). 3

1.4 In continuation with positive growth exhibited by exports for the last thirteen months, India s exports, in dollar terms, valued at USD 28.6 billion in Sep 2017 exhibited double digit growth for second month in succession at 25.7 per cent over Sep 2016 (valued at USD 22.8 billion). Imports growth, on other hand, weakened in September 2017 from August 2017. All the top ten commodity groups of export exhibited positive growth comprising 82.14 per cent share in total exports comprising Engineering Goods (44.24 per cent), Gems and Jewellery (7.10 per cent), Petroleum Products (39.69 per cent), Organic & Inorganic Chemicals (46.06 per cent), Rice (45.66 per cent) and Electronic Goods (14.32 per cent). POL imports (valued at USD 8.19 billion) during September, 2017 was 18.47 per cent higher than in September 2016. The global Brent crude prices ($/bbl) increased by 19.42 per cent in September 2017 vis-à-vis September 2016 as per World Bank commodity price data. As import growth moderated vis a vis export growth, the trade deficit narrowed to US$ 32.1 billion in Q2 that from US$ 41.6 in Q1 (Chart 4). 1.5 Net foreign direct investment at USD 13.6 billion during Jul-Sep 2017 was more than doubled as compared to Q1, flowing mainly into manufacturing, retail and wholesale trade and 4

business services. While the debt segment of the domestic capital market attracted foreign portfolio investment of USD 14.4 billion, there were significant outflows in the equity segment in August-September 2017 on account of geo-political uncertainties and expected normalisation of Fed asset purchases. India s foreign exchange reserves were at US$ 399.7 billion as on September 29, 2017. Rupee mostly exhibited an appreciating trend during the quarter driven by positive macroeconomic factors such as high capital inflows, ample liquidity, etc. As compared with previous quarter closing of INR at `64.74 per USD on June 30, 2017, INR traded in range of `63.63-65.76 per USD during the quarter and closed at level of `63.36 per USD on Sep 29, 2017. The average INR exchange rate was `64.29 per USD during the Q2 as compared with `64.45 per USD during Q1 quarter (Chart 5). 5

Section 2 Debt Management - Primary Market Operations A. Government Finances 2.1 The fiscal deficit of the Central Government in budget estimates (BE) 2017-18 (FY 18) was placed at `. 5,46,532 crore (3.2 per cent of GDP) as against `. 5,34,274 crore (3.5 per cent of GDP) in the revised estimates (RE) for 2016-17. 2.2 The fiscal outcome for first half (HY1) of the FY18 (Apr-Sep 2017) of Central government shows that gross fiscal deficit during Apr-Sep 2017 touched ` 4.99 trillion or 91.3 per cent of 2017-18 BE as against 83.9 per cent in Apr-Sep 2016 of 2016-17 BE. Total receipts (from revenue and non-tax) during the first half was over ` 6.23 trillion or 41.1 per cent of the BE vis-a-vis 41.2 per cent of BE last year. Total expenditure of the government during April-Sep 2017 was nearly ` 11.5 trillion or 53.5 per cent of BE as compared to 52.0 per cent of 2016-17 (BE) (Table 1). Table 1: Fiscal Outcome during the April -Sep 2017-18 (Amount in ` crore) Item 2017-18 BE April-Sep 2017-18 Actuals April-Sep 2017-18 (% of BE) April-Sep 2016-17 (% of BE) Revenue Receipts 1515771 623207 41.11 41.2 Tax Receipts 1227014 542358 44.20 44..2 Non-Tax Receipts 288757 80849 28.00 36.8 Other Non-debt 84432 27042 32.03 19.1 Receipts Total Expenditure 2146735 1149187 53.53 52.0 Revenue 1837505 1002798 54.57 51.6 Expenditure Capital Expenditure 309230 146389 47.34 54.7 Revenue Deficit 321734 379591 117.98 91.9 Primary Deficit 23454 273172 1164.71 569.3 Gross Fiscal Deficit 546532 498938 91.29 83.9 Financing Market Loans* 350228.4 380665 108.69 66.0 External Assistance 15789 5428 34.38 29.0 Securities against 100157.16 18989 18.96-7.0 Small Savings Others 80357.44 93857 116.80 290.2 *:- Includes borrowings through treasury bills. Source: Controller General of Accounts (CGA) website; cga.nic.in B. Issuance Details This section discusses the issuance details of market loans during the first half of FY17. 2.3 Gross and net market borrowing requirements of the Government for FY 18 were budgeted at ` 5,80,000 crore and ` 4,23,226 crore respectively, which were lower by 3.33 per cent and 0.5 per cent, respectively, than ` 6,00,000 crore and ` 4,25,181 crore in the revised estimates for FY17. During Q2 of 6

FY18, the Government issued dated securities worth ` 1,89,000 crore taking the gross borrowings during H1 FY18 to ` 3,57,000 crore or 61.68 per cent of BE, vis-a-vis 56.8 per cent of BE in H1 FY 17 (Table 2). Net market borrowings during H1 FY 18 at 89.1 per cent of BE were, also higher than 61.1 per cent of BE in the previous year. Item 2017-18 BE Table 2: Issuance of Dated Securities (Amount in ` crore) H1 FY H1 FY 18 % H1 FY 17 % Q2 FY 18 H1 FY 18 17 of BE of BE Gross Amount 5,80,000 1,89,000 3,57,000 3,41,000 61.6 56.8 Repayments 1,56,774 1,02,952 1,39,719 1,06,838 89.1 61.1 Switching/Buy Back 75,000 0 0 0 - - Net Issuance 4,23,226 86,048 2,17,281 2,34,162 51.3 55.1 2.4 Auctions during Q2 of FY18 were held more or less in accordance with the pre-announced calendar. Seeing the robust demand for the securities in 10-14 year segment, issuance in this maturity bucket was kept higher than the projected issuance to meet the requirements of market participants. (Table 3). During Q2 FY 18, 12 tranches of auctions were held towards issuances of dated securities worth ` 1,89,000 crore. One new security, namely, 6.68% GS 2031 was issued during the quarter on Sep 01, 2017. The amount issued under new security constituted ` 17,000 crore or 8.99 per cent of total issuances in Q2, remaining being re-issues under the existing securities. There was no devolvement of G-securities on PDs during Q2 FY 17. Table 3 Primary Issuance by Maturity Buckets, Q 2 of 2017-18 (Amount in ` crore) Column1 5-9 years 10-14 years 15-19 Years 20-30 Years Total 2015-16 94000 266000 112000 113000 585000 % of Total 16.1 45.5 19.1 19.3 100 2016-17 108000 303000 82000 89000 582000 % of Total 18.6 52.1 14.1 15.3 100 H 1 FY18 (Projected) 72000-96000 152000-176000 48000-72000 51000-75000 372000 % of Total 19.4-25.9 41.2-47.7 13.0-19.4 13.7-20.2 100.0 Q2 FY18 (Projected) 36000-48000 78000-90000 24000-36000 27000-39000 189000 % of Total 19.2-25.6 41.9-48.3 12.8-19.2 14.3-20.7 100.00 Q2 FY18 (Actual) 36000 96000 27000 30000 189000 % of Total 19.05 50.79 14.29 15.87 100.00 H 1 FY18-Actual 70000 177000 50000 60000 357000 % of Total 19.61 49.58 14.01 16.81 100.00 7

2.5 The gross amount raised through treasury bills (91, 182 and 364 day treasury bills) during Q2 of FY 18 amounted to ` 3,18,644 crore while total repayments amounted to ` 2,68,899 crore resulting in net issuance of ` 49,744 crore in Q2 FY 18, as compared to net issuance of ` 91,514 crore in Q1 FY 18 (Table 4). Net issuance of Treasury Bills in HY 1 FY 18 stood at ` 1,41,258 crore. The details of issuance of bills during Q2 of FY18 are given in Statement 2. Table 4: Issuance of Treasury Bills* (Amount in ` crore) Item 2017-18 BE Q2 FY 18 H 1 FY 18 H1 FY 18 % of BE H1 FY 17 % of BE 364 DTB Gross Amount 148524 42010 80984 54.5 0.0 Repayment 148524 40000 78520 52.9 0.0 Net Issuance 0 2010 2464-0.0 182 DTB Gross Amount 165912 44108 98545 59.4 52.5 Repayment 165912 33554 85436 51.5 49.3 Net Issuance 0 10554 13108-176.1 91 DTB Gross Amount 668211 232526 427870 64.0 48.5 Repayment 668211 195345 302185 45.2 45.2 Net Issuance 0 37181 125686 - - All T-bills Gross Amount 982647 318644 607399 61.8 48.3 Repayment 980645 268899 466141 47.5 46.0 Net Issuance 2002 49744 141258 7055.9 127.2 *:- Including amount through non-competitive route. 2.6 Taking cognisance of market demand and yield curve movements, the weighted average maturity of primary issuance was kept long during the Q2 FY18, although it moderated marginally as compared with Q1 FY 18. The weighted average maturity (WAM) of dated securities issued during Q2 FY18 was 14.58 years as against 14.91 years for dated securities issued in Q1 FY 18. The weighted average yield (cut-off) of issuance during Q2 FY18 was at 6.76 per cent as against 7.01 per cent in Q1 FY18, reflecting easing of G-sec yields during the quarter. 8

Section 3 Cash Management 3.1 Government s cash account is maintained with RBI. The cash-flow mismatches of the Government are largely managed through issuance of Treasury Bills, access to the Ways and Means Advances (WMA) facility from the Reserve Bank and issuance of Cash Management Bills when in deficit and through auctions of its cash balance in market (through RBI) and buybacks of securities from market, when in surplus. The limits for Ways and Means Advances (WMA) for the second quarter of the Financial Year 2017-18 (July 2017-Sept 2017) was fixed at ` 25,000 crore. Also based on assessment of prevailing and evolving liquidity conditions, RBI conducted sale of Government securities under Open Market Operations for an aggregate amount of 600 billion during the quarter. 3.2 Liquidity conditions in the economy continued to remain in surplus mode post demonetisation and were comfortable and in surplus mode during the quarter (Chart 6). The liquidity surplus(-), (net borrowings from RBI under Liquidity Adjustment Facility (LAF) including MSF & MSS) during the quarter, was at an average of ` 3,98,693 crore in July 2017, decreasing to an average surplus of ` 3,78,080 crore in August 2017 and decreasing further in September 2017 to an average surplus of ` 3,22,579 crore. The average net surplus under LAF(including MSF & MSS) during Q2 of FY 17-18 was at ` 3,66,263 crore as against surplus of ` 4,24,768 crore in the previous quarter (Q1 of FY 17-18). In the third Bi-monthly Monetary Policy Statement for FY 2017-18 on August 2, 2017, RBI reduced the policy Repo rate by 25 bps from 6.25 percent to 6.00 per cent with immediate effect while maintaining a neutral stance and maintaining a wait and watch approach with regard to incoming data. Consequently, the repo rate under LAF stands adjusted to 5.75%, with MSF and Bank rate at 6.25%. 9

3.3 The cash position of the Government during Q2 of FY17-18 was tight and the Government had to resort to W & M Advances from RBI on many occasions. The Net amount of Treasury Bills issued through competitive route during the quarter was ` 46,004 crore. The net amount of Treasury Bills issued through non-competitive route during the quarter was ` 3,740.51 crore. Overall, the net amount mobilised through treasury bills (under competitive and noncompetitive routes) during Q2 of FY17 increased leading to issuance of ` 49,744.51 crore. Details of treasury bills issued and matured in Q2 of FY17 are given in Table 5. Date of Issue Table 5: Repayments and Issuance Treasury Bills in July Sept 2017 (Amount in ` crore) Repayments Issued Amount Variation in Issued amount 91 DTB 182 DTB 364 DTB 91 DTB 182 DTB 364 DTB over Repayments 6-July-17 8000 0 6000 10000 0 6000 2000 13-July-17 8000 4000 0 10000 7000 0 5000 20-July-17 8000 0 6000 10000 0 6000 2000 27-July-17 8000 0 0 10000 7000 0 9000 28-July-17 0 3998 0 0 0 0-3998 3-Aug-17 8000 0 6000 10000 0 6000 2000 10-Aug-17 8000 4000 0 10000 7000 0 5000 17-Aug-17 8000 0 6000 0 0 0-14000 18-Aug-17 0 0 0 10000 0 6000 16000 24-Aug-17 8000 4000 0 10000 7000 0 5000 31-Aug-17 8000 0 6000 10000 0 6000 2000 7-Sep-17 8000 3998 0 10000 7000 0 5002 14-Sep-17 8000 0 5000 10000 0 6000 3000 21-Sep-17 8000 4000 0 10000 7000 0 5000 28-Sep-17 8000 0 5000 10000 0 6000 3000 Total Under Competitive Route Q2 1,04,000 23,996 40,000 1,30,000 42,000 42,000 46,004 Total Under Non-Competitive Route Q2 91,344.80 9,558.01 0.37 1,02,525.63 2,108.06 10.00 3,740.51 3.4 The calendar for issuance of treasury bills during October - December 2017 was announced on September 28, 2017, with gross borrowings at ` 1,43,000 crore (Statement 5). 10

Section 4 Trends in Outstanding Public Debt 4.1 The total Public Debt (excluding liabilities under the Public Account ) of the Government provisionally increased to ` 65,65,652 crore at end-sep 2017 from ` 64,03,138 crore at end- June 2017 (Table 6). This represented a quarter-on-quarter (QoQ) increase of 2.5 per cent (provisional) in Q2 FY 18 as compared with an increase of 4.7 per cent in the previous quarter (Q1 of FY 18). Internal debt constituted 93.0 per cent of Public Debt at the end of quarter, same as that in the previous quarter. Marketable securities (consisting of Rupee denominated dated securities and Treasury Bills) accounted for 82.6 per cent of total Public Debt at end-sep 2017. The outstanding internal debt of the Government at ` 6,105,458 crore constituted 38.2 per cent of GDP at end-sep 2017 as compared with 38.1 per cent at end-june 2017. Item Table 6: Composition of Public Debt At end-sep 2017# At end-june 2017 At end-sep 2017# At end-june 2017 (` crore) (% of Total) 1 2 3 4 5 Public Debt (1 + 2) 65,65,652 64,03,138 100.0 100.0 1. Internal Debt 61,05,458 59,53,925 93.0 93.0 Marketable 54,24,650 52,77,272 82.6 82.4 (a) Treasury Bills 4,76,050 4,31,643 7.3 6.7 (i) Cash Management Bills - 5,327 - - (ii) 91-days Treasury Bills 2,32,526 1,95,345 3.5 3.1 (iii) 182-days Treasury Bills 98,545 87,991 1.5 1.4 (iv) 364-days Treasury Bills 1,44,980 142,981 2.2 2.2 (b) Dated Securities 49,48,599 48,45,629 75.4 75.7 Non-marketable 6,80,808 6,76,652 10.4 10.6 (i) 14-days Treasury Bills 1,25,172 1,18,466 1.9 1.9 (ii) Securities Issued to NSSF* 4,00,796 4,00,796 6.1 6.3 (iii) Compensation and other 52,852 52,852 0.8 0.8 bonds* (iv) Securities issued to 1,01,989 1,01,989 1.6 1.6 International Financial Institutions* (v) Ways and Means Advances 2,550-0.0 2. External Debt 4,60,194 4,49,213 7.0 7.0 (i) Multilateral 2,99,355 2,92,646 4.6 4.6 (ii) Bilateral 1,24,469 1,20,194 1.9 1.9 (iii) IMF* 35,834 35,834 0.5 0.6 (iv) Rupee debt 536 538 0.0 0.0 #: Data are provisional. *These data are not available for end-sep 2017. So they are carried over from previous quarter. 11

Maturity Pattern for Outstanding Government Debt Stock 4.2 The weighted average yield of primary issuance during Q2 FY 18 came down to 6.77 per cent from 7.01 per cent in the previous quarter, indicating lower yield environment. The weighted average maturity of outstanding stock of dated securities as on end-sep 2017 increased marginally to 10.76 years from 10.67 years as on end June 2017. Over the same period, the weighted average coupon of outstanding stock decreased marginally to 7.91 per cent from 7.95 per cent (Table 7). Table 7: Maturity and Yield of Central Government's Market Loans Year Issues during the year Outstanding Stock* Weighted Average Yield (%) Weighted Average Maturity (yrs) Weighted Average Coupon (%) Weighted Average Maturity (yrs) 1 2 3 4 5 2010-11 7.92 11.62 7.81 9.64 2011-12 8.52 12.66 7.88 9.6 2012-13 8.36 13.5 7.97 9.66 2013-14 8.48 14.28 7.98 10.00 2014-15 8.51 14.66 8.09 10.23 2015-16 7.89 16.07 8.08 10.50 2016-17 Q1 7.64 14.37 8.07 10.53 2016-17 Q2 7.24 14.26 8.05 10.54 2016-17 Q3 6.78 15.59 8.02 10.54 2016-17 Q4 6.75 15.01 7.99 10.65 2016-17 7.16 14.76 7.99 10.65 2017-18 Q1 7.01 14.92 7.95 10.67 2017-18 Q2 6.77 14.58 7.91 10.76 *As at end of period. 4.3 The proportion of debt (dated securities) maturing in less than one year decreased to 3.7 per cent at end-sep 2017 from 5.3 per cent a quarter ago. However, proportion of debt maturing within 1-5 years was higher at 24.1 per cent as against 21.3 per cent at end-jun 2017. Accordingly, debt maturing in next five years increased to 27.3 per cent in Q2 FY 18 from 26.6 per cent of outstanding during the previous quarter. The proportion of outstanding debt maturing in less than 10 years was also higher at 59.4 per cent as against 57.3 per cent a quarter ago, with corresponding decrease in share in proportion of debt maturing in more than 10 years. The change in composition of debt in terms of various maturity buckets reflects the maturity 12

structure of securities issued during Q2 of FY18 as well as the maturity dynamics of outstanding securities. Overall, 27.3 per cent of outstanding stock has a residual maturity of up to 5 years at end-sep 2017, which implies that over the next five years, on an average, 5.5 per cent of outstanding stock needs to be repaid every year (Table 8). Thus, the rollover risk in the debt portfolio continues to be low. A switch operation of GoI securities worth face value 17,016 crore was conducted in Q1 on June 12, 2017. The implementation of budgeted buy back/ switches in coming months is expected to reduce roll over risk further. Holding Pattern Table 8: Maturity Profile of GoI Outstanding Dated Securities (Amount in ` crore) Maturity Buckets End-Jun 2017 End-Sep 2017 Less than 1 Year 2,54,538.96 1,84,732.8 (5.3) (3.7) 1-5 Years 10,32,032.5 11,66,367.2 (21.3) (24.1) 5-10 Years 14,89,612.9 15,86,827.7 (30.7) (32.7) 10-20 Years 14,56,878.9 13,68,199.3 (30.1) (28.2) 20 Years and above 6,12,472.3 6,42,472.3 (12.6) (13.3) Total 4,845,535.50 4,948,599.34 Note: 1. Figures in parentheses represent per cent to total. 4.4 The holding pattern of Government securities is available with a lag of a quarter; the latest data is available for end-june 2017 (Table 9 and Chart 7). Banks (including banks that are primary dealers) continue to dominate as the major investor category, even with their share in holding of Government securities decreasing to 39.7 per cent at end-jun 2017 from 40.5 per cent as at end-mar 2017. Among the long-term investors, the share of holding by insurance companies increased marginally at end-jun 2017 to 23.1 per cent from 22.9 per cent at end- March 2017. The share of FPIs increased to 4.3 per cent at end-jun 2017 from 3.5 per cent a quarter ago. Share of Mutual Funds decreased marginally to 1.44 per cent at end-jun 2017 from 1.99 per cent a quarter ago. Proportion of securities held by the Reserve Bank at end-jun 2017 decreased marginally to 14.3 per cent (from 14.7 per cent a quarter ago) reflecting liquidity operations conducted by it as a part of its monetary policy stance. 13

Table 9: Ownership Pattern of Government of India Dated Securities (Per cent of Outstanding Securities) Category 2016 2017 Mar. Jun. Sep. Dec. Mar Jun 1. Commercial Banks 41.8 39.90 40.0 40.9 40.5 39.7 2. Non-Bank PDs 0.3 0.45 0.1 0.3 0.2 0.3 3. Insurance Companies 22.2 22.63 22.7 22.6 22.90 23.13 4. Mutual Funds 2.1 2.09 2.1 2.0 1.49 1.44 5. Co-operative Banks 2.8 2.68 2.5 2.6 2.7 2.7 6. Financial Institutions 0.7 0.71 0.8 0.9 0.8 0.7 7. Corporates 1.3 1.31 1.1 1.1 1.1 1.3 8. FPIs 3.7 3.63 3.8 3.1 3.5 4.3 9. Provident Funds 6.0 5.89 6.3 6.2 6.3 6.1 10. RBI 13.5 14.88 14.8 14.6 14.7 14.3 11. Others 5.7 5.83 5.8 5.8 6.0 6.1 Total 100.0 100.00 100.0 100.0 100.0 100.0 Source: RBI Bulletin, Volume LXXI Number 9, Sep 2017. 14

15

Section 5 Secondary Market A. Government security yields 5.1 G-Sec yields showed a falling trend till August 3, 2017 but an increasing trend was seen thereafter. Yields initially softened due to increase in FPI limits by RBI to ` 2.42 lakh crore in G-Secs and ` 0.33 lakh crore for SDLs under the revised medium term framework for investment by FPIs. The FPIs utilized these limits within a few days from the announcement reflecting strong appetite for Government bonds. Marginal fall in US yield also helped to soften the yields in India. Fall in inflation, both WPI and CPI which touched historical low (WPI: 0.90% and CPI: 1.46% in June 2017) also supported the low yield sentiments. Surplus liquidity prevailing in the system as reflected in huge mobilization of funds under reverse repos by RBI also helped. Repo rate cut by RBI by 25 bps (from 6.25% to 6.00% on August 2, 2017) also supported the yields. 5.2 Yields, however, started hardening from beginning of August due to rise in inflation (WPI 3.24% in August 2017, 2.60% in September 2017 and CPI 3.28% in August 2017 as also in September 2017 vs. WPI of 0.90% and CPI of 1.46% in June). Rise in trade deficit in August 2017 ($11.7 bn in Aug 17 vs. $7.7 bn in Aug 16) and adverse Dollar-Rupee movement (Rupee depreciated from 63.88 in Aug end to 65.71 on Sep 27, 2017, a fall of almost Rupees 2 in a month) added to the pressure. Crude oil prices jumped from $ 47 in June to $ 59/barrel on September 27, 2017 putting pressure on balance of trade and BoP position and its likely effect on inflation. Concerns over GST revenues (after net of refund claims) and rumours about fiscal stimulus by the Government also affected yields. 5.3 GDP growth slowed to 5.70 percent in Q1 of FY 18, which is a 3 year low. Global geo-political tension (missile threats by North Korea and subsequent military exercise by South Korea, Japan and USA in Pacific Ocean). Lowering the GDP growth projections for India by various multilateral organisations like World Bank, IMF, ADB, etc. also led to hardening of the yields. Ten year benchmark yield closed at 6.67% on Sep 30, 2017 compared to 6.51% on June 30, 2017. The yield was in the range of 6.41% and 6.68% during the quarter. 5.4 G-Sec yields at the end of September 2017 were broadly higher across the Yield curve compared to end-june 2017, mainly due to the reasons detailed in para 5.1-5.3 above. There was, however, some moderation in the yields at upto 1 year and 14 year points. The 1 yr-10 yr spread hardened to 56 bps at the end of Sep 2017 from 18 bps at the end of June 2017 while 10yr-30yr spread narrowed to 43 bps from 16

56 bps over the same period. Overall, 1yr-30yr spread at end of Q2 of FY17-18 widened to 99 bps compared to 74 bps at the end of the Q1 (Chart 9). 5.5 The surplus liquidity in the system remained comfortable at about ` 1.50-2.00 lakh crore during July-September 2017. The 91, 182 and 364 day yields softened by 21, 13 and 13 bps respectively. The spread between 1 month yield and 12 months yield, however, jumped by 16 bps on Sep 30, 2017 compared to 10 bps on June 30, 2017. The spread between 1 month yield and 3 months yield also fell to 1 bp on September 30, 2017 compared to 3 bps in June 2017. The spread between 3 month and 6 month yields hardened to 11 bps on September 30, 2017 from 3 bps on June 30, 2017. B. Trading Pattern for domestic securities 5.6 The total outright volume of G-Secs traded during Q2 of FY17-18 was ` 34.29 lakh crore, an increase of 10.2% compared to volume of ` 31.12 lakh crore during Q1 (Table 10). The G-Secs trading saw the increase of 8.79% while T-Bills and SDLs trading activity improved by 15.1% and 25.4% respectively during the quarter. The annualised outright turnover ratio 1 for G-Secs for Q2 of FY17-18 improved to 4.73 from 4.48 during Q1. The annualised total turnover ratio 2 including the repo transactions, for Q2 of FY 17-18 also increased to 12.18 from 11.83 during Q1. 1 Annualised Outright Turnover Ratio = 4*[Quarterly Outright Volume *2/(Average of outstanding stock)] 2 Annualised Total Turnover Ratio = 4* [(Quarterly Outright Volume *2 + Quarterly Repo Volume * 4) / (Average of outstanding stock)] 17

Table 10: Transactions in Government Securities (volume in ` Crore) Outright Period G-Sec T-Bills SDL Total G-Sec T-Bills SDL Total Oct-Dec 13 13,12,75 2,10,20 33,062 15,56,02 7,23,963 9,78,151 5,018 17,07,13 Jan-Mar 14 15,99,76 1,99,69 41,768 18,41,22 6,84,264 9,89,645 14,168 16,88,07 Apr-Jun 14 23,67,77 2,28,29 49,700 26,45,76 9,50,413 10,13,22 6,726 19,70,36 July-Sept 14 18,06,27 2,01,53 24,824 20,32,63 10,12,13 9,24,362 26,401 19,62,89 Oct-Dec 14 26,90,53 2,04,13 43,601 29,38,26 11,83,00 5,80,690 60,785 18,24,47 Jan-Mar 15 22,85,02 1,89,50 64,959 25,39,49 13,26,35 7,40,729 50,431 21,17,51 Apr-Jun 15 22,80,74 2,25,23 56,618 25,62,60 12,67,88 7,73,487 10,096 20,51,47 July-Sept 15 21,54,20 2,26,05 77,147 24,57,40 14,56,16 5,33,733 41,476 20,31,37 Oct-Dec 15 19,31,99 2,15,03 87,086 22,34,11 16,22,56 4,95,476 45,462 21,63,50 Jan-Mar 16 21,90,73 1,88,06 95,627 24,74,42 18,84,07 4,45,508 45,731 23,75,31 Apr-June 16 28,27,81 2,35,85 1,13,27 31,76,94 20,64,06 4,35,971 1,18,26 26,18,30 July-Sept 16 52,05,35 2,76,67 1,87,32 56,69,35 26,81,22 3,27,322 1,80,49 31,89,03 Oct-Dec 16 45,92,86 2,60,52 1,42,80 49,96,20 24,44,86 3,78,260 1,34,36 29,57,48 Jan-Mar 17 25,72,43 3,00,40 1,58,80 30,31,64 23,09,65 6,61,235 99,290 30,70,17 Apr-June 17 26,64,38 2,94,36 1,53,17 31,11,92 21,86,20 6,37,634 1,96,87 30,20,71 Jul-Sep 17 28,98,61 7 3,38,69 6 1,92,114 6 34,29,423 9 22,84,486 7 Repo 7,91,658 2,26,214 8 33,02,364 3 5.7 Central Government dated securities continued to account for a dominant portion of total trading volumes (Chart 11a and 11b) although their share fell during the Q2 to 84.52% of total outright volumes, as compared to 85.62% in Q1. In Repo market also, Central Government securities accounted for majority of transactions but their share fell to 69.18% of the total repo volumes during Q2 of FY17-18 as compared to 72.37% in Q1. 18

5.8 The top 10 traded securities accounted for 70.06% of the total outright transaction volume during the Q2 compared to 66.55% during Q1, reflecting that trading has again concentrated to fewer securities as compared to Q1. The share of top three traded securities also increased to 58.88% during Q2 from 48.09% during Q1. (Table 11) Table 11 - Top 10 Traded Securities (in ` Crore) Security Volume in Jul-Sep 17 Security Volume in Apr-June 17 6.79% GS 2027 9,79,646 6.79% GS 2029 7,26,796 6.79% GS 2029 9,54,073 6.97% GS 2026 4,63,817 6.97% GS 2026 85,470 6.79% GS 2027 3,05,910 7.35% GS 2024 74,079 7.59% GS 2026 1,96,222 7.68% GS 2023 71,375 7.61% GS 2030 1,50,185 6.68% GS 2031 70,482 7.72% GS 2025 63,182 7.72% GS 2025 64,171 7.68% GS 2023 54,743 6.35% G.S 2020 39,326 7.35% G.S. 2024 47,278 7.16% GS 2023 33,765 8.20% G.S. 2025 31,538 6.84% GS 2022 30,205 8.60% GS 2028 31,397 Total 24,02,591 Total 20,71,068 5.9 The trend in outright trading volumes in Government securities under different maturity buckets is given in Table 12. Table 12: Maturity wise outright trading volumes in G-Secs (in ` Crore) Maturity/ Jul-Sep Apr-June Jan-Mar Oct-Dec July - Apr-Jun 2016-17 2015-16 Quarter 2017 2017 2017 16 Sept 16 16 Less than 23,490 36,298 91,827 84,902 76,389 109,611 3,62,729 2,24,817 3 Years 3-7 Years 3,31,725 4,19,757 3,55,658 7,63,849 896,473 771,652 27,87,632 15,68,708 7-10 13,22,507 11,40,696 14,06,383 19,81,604 1908,203 903,690 61,99,880 42,72,320 Years > 10 12,20,895 10,67,629 7,18,569 17,62,511 2,324,288 1,042,860 58,48,228 24,91,828 Years Total 28,98,617 26,64,380 25,72,437 45,92,866 5,205,353 2,827,813 1,51,98,469 85,57,673 19

5.10 The maturity distribution of Government securities transactions in the secondary market is represented in Chart 12a and 12b for Q1 and Q2 2 of 2017-18 respectively. Trading fell in short end (less than 3 years and 3-7 years) of bond market during the quarter vis-à-vis previous quarter. Share of 7-10 year and 10 years and above maturity bucket saw a marginal rise in share of trading volumes during Q2 of FY 17-18 compared to Q1. The below 3 years maturity bracket continued to have lowest share of trading volume 0.81% in Q1 vs. 1.36% in Q1 of FY 2017-18. Table 12 a: Maturity wise composition of G-Secs trading Jul-Sep 17 Jul-Sep 17 (%) Apr-June 17 (` Cr) Apr-June 17 (%) Maturity/Quarter (` Cr) Less than 3 Years 23,490 0.81% 36,298 1.36% 3-7 Years 3,31,725 11.44% 4,19,757 15.75% 7-10 Years 13,22,507 45.63% 11,40,696 42.81% > 10 years 12,20,895 42.12% 10,67,629 40.07% Total 28,98,617 100.00% 26,64,380 100.00% 5.11 PSBs were the dominant trading category during the Jul-Sep 2017 quarter with a 25.6% share in total outright trading activity. (Chart 13). Foreign banks vouched for the 2 nd highest share at 18.9%. On net basis, PSBs were the largest net buyer (` 50,869 crore) in secondary market during the quarter, followed by `Mutual Funds category (` 41,163 crore). PDs were the largest net sellers category in secondary market (` 64,533 crore) during the quarter, followed by foreign banks (` 47,171 crore). 20

5.10 Quarterly share of various categories/participants in the secondary market trading activity (buy + sell) for government securities is shown in Table 13. Table 13: Share of various categories of participants in G-Secs trading Jul-Sep 2017 Apr-June 17 Jan-March 17 Oct-Dec 16 July-Sept 16 Category Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell Co-op Banks 2.96% 2.71% 4.16% 3.89% 3.84% 3.48% 4.98% 4.72% 4.97% 4.89% FIs 1.12% 0.67% 0.44% 0.22% 0.44% 0.36% 0.45% 0.36% 0.35% 0.31% Foreign Banks 18.18% 19.55%22.66% 21.96% 28.67% 28.59% 24.90% 26.81% 24.74% 25.04% Ins. Cos 8.18% 8.43% 2.08% 1.68% 2.08% 1.66% 1.19% 1.14% 1.07% 0.95% MFs 15.78% 14.58% 10.55% 7.78% 12.19% 10.64% 9.64% 9.47% 8.24% 7.69% Others 2.45% 1.64% 2.23% 1.20% 1.82% 0.90% 1.19% 0.65% 16.92% 18.11% Primary Dealers 11.00% 12.89% 15.33% 18.00% 12.19% 13.56% 14.65% 16.22% 13.32% 13.75% Pvt Banks 14.02% 14.71% 17.09% 17.66% 13.17% 14.46% 13.51% 13.27% 29.23% 28.59% PSBs 26.30% 24.82% 25.46% 27.61% 25.60% 26.35% 29.49% 27.36% 1.15% 0.69% Total 100% 100% 100% 100% 100% 100 100% 100% 100% 100% 21

Name of Stock Statement 1: Issuance of Dated securities During Q2 FY 17-18 Date of Auction Date of Issue Amount Raised Devolve ment on PDs Cut off price Cut off yield (%) (Amount in `Crore) Date of Maturity Residual Maturity (Years) 6.30% FRB 2024 $ M 30-Jun-17 03-Jul-17 3000.0 0.0000 97.130 6.850 07-Nov-24 7.34 6.79% GS 2027 $ M 30-Jun-17 03-Jul-17 8000.0 0.0000 101.92 6.521 15-May-27 9.87 7.73% GS 2034 $ M 30-Jun-17 03-Jul-17 2000.0 0.0000 106.76 7.050 19-Dec-34 17.46 7.06% GS 2046 $ M 30-Jun-17 03-Jul-17 2000.0 0.0000 99.130 7.129 10-Oct-46 29.27 6.84% GS 2022 $ M 07-Jul-17 10-Jul-17 3000.0 0.0000 100.70 6.683 19-Dec-22 5.44 6.79% GS 2029 $ M 07-Jul-17 10-Jul-17 9000.0 0.0000 99.440 6.857 26-Dec-29 12.46 6.57% GS 2033 $ M 07-Jul-17 10-Jul-17 3000.0 0.0000 96.210 6.960 05-Dec-33 16.40 6.62% GS 2051 $ M 07-Jul-17 10-Jul-17 3000.0 0.0000 92.760 7.190 28-Nov-51 34.38 6.30% FRB 2024 $ M 14-Jul-17 17-Jul-17 3000.0 0.0000 97.200 6.819 07-Nov-24 7.31 6.79% GS 2027 $ M 14-Jul-17 17-Jul-17 9000.0 0.0000 102.24 6.476 15-May-27 9.83 7.73% GS 2034 $ M 14-Jul-17 17-Jul-17 3000.0 0.0000 106.40 00 67.083 19-Dec-34 17.42 7.06% GS 2046 $ M 14-Jul-17 17-Jul-17 3000.0 0.0000 99.860 00 97.070 10-Oct-46 29.23 6.84% GS 2022 $ M 21-Jul-17 24-Jul-17 3000.0 0.0000 101.480 26.508 19-Dec-22 5.40 6.79% GS 2029 $ M 21-Jul-17 24-Jul-17 7000.0 0.0000 100.59 86.718 26-Dec-29 12.42 6.57% GS 2033 $ M 21-Jul-17 24-Jul-17 2000.0 0.0000 97.550 00 36.819 05-Dec-33 16.36 6.62% GS 2051 $ M 21-Jul-17 24-Jul-17 3000.0 0.0000 93.7200 7.110 28-Nov-51 34.34 6.30% FRB 2024 $ M 28-Jul-17 31-Jul-17 3000.0 0.0000 97.3500 16.767 07-Nov-24 7.27 6.79% GS 2027 $ M 28-Jul-17 31-Jul-17 8000.0 0.0000 102.520 26.437 15-May-27 9.79 7.73% GS 2034 $ M 28-Jul-17 31-Jul-17 2000.0 0.0000 106.70 00 37.054 19-Dec-34 17.39 7.06% GS 2046 $ M 28-Jul-17 31-Jul-17 2000.0 0.0000 99.990 00 07.059 10-Oct-46 29.19 6.84% GS 2022 $ M 04-Aug-17 07-Aug-17 3000.0 0.0000 101.850 6.424 19-Dec-22 5.37 6.79% GS 2029 $ M 04-Aug-17 07-Aug-17 7000.0 0.0000 100.51 6.727 26-Dec-29 12.39 6.57% GS 2033 $ M 04-Aug-17 07-Aug-17 2000.0 0.0000 97.490 00 56.826 05-Dec-33 16.33 7.72% GS 2055 $ M 04-Aug-17 07-Aug-17 3000.0 0.0000 108.970 17.039 26-Oct-55 38.22 6.30% FRB 2024 $ M 11-Aug-17 14-Aug-17 3000.0 0.0000 97.280 00 06.747 07-Nov-24 7.23 6.79% GS 2027 $ M 11-Aug-17 14-Aug-17 8000.0 0.0000 102.050 16.501 15-May-27 9.75 7.73% GS 2034 $ M 11-Aug-17 14-Aug-17 2000.0 0.0000 106.42 00 07.080 19-Dec-34 17.35 7.06% GS 2046 $ M 11-Aug-17 14-Aug-17 2000.0 0.0000 99.740 00 07.080 10-Oct-46 29.16 6.84% GS 2022 $ M 18-Aug-17 21-Aug-17 3000.0 0.0000 101.600 16.477 19-Dec-22 5.33 6.79% GS 2029 $ M 18-Aug-17 21-Aug-17 7000.0 0.0000 99.790 00 36.814 26-Dec-29 12.35 6.57% GS 2033 $ M 18-Aug-17 21-Aug-17 2000.0 0.0000 96.6900 06.910 05-Dec-33 16.29 6.62% GS 2051 $ M 18-Aug-17 21-Aug-17 3000.0 0.0000 93.4800 37.130 28-Nov-51 34.27 6.30% FRB 2024 $ M 24-Aug-17 28-Aug-17 3000.0 0.0000 97.3500 16.701 07-Nov-24 7.19 6.79% GS 2027 $ M 24-Aug-17 28-Aug-17 8000.0 0.0000 101.760 56.540 15-May-27 9.71 7.73% GS 2034 $ M 24-Aug-17 28-Aug-17 2000.0 0.0000 105.82 00 57.137 19-Dec-34 17.31 7.06% GS 2046 $ M 24-Aug-17 28-Aug-17 2000.0 0.0000 98.890 00 47.150 10-Oct-46 29.12 6.84% GS 2022 $ M 01-Sep-17 04-Sep-17 3000.0 0.0000 101.590 26.477 19-Dec-22 5.29 6.68% GS 2031 # M 01-Sep-17 04-Sep-17 9000.0 0.0000 100.00 36.679 17-Sep-31 14.04 6.57% GS 2033 $ M 01-Sep-17 04-Sep-17 3000.0 0.0000 97.080 00 6.869 05-Dec-33 16.25 7.72% GS 2055 $ M 01-Sep-17 04-Sep-17 3000.0 0.0000 107.410 67.150 26-Oct-55 38.14 6.30% FRB 2024 $ M 08-Sep-17 11-Sep-17 3000.0 0.0000 97.400 16.680 07-Nov-24 7.16 6.79% GS 2027 $ M 08-Sep-17 11-Sep-17 8000.0 0.0000 101.950 16.513 15-May-27 9.68 7.73% GS 2034 $ M 08-Sep-17 11-Sep-17 2000.0 0.0000 106.30 00 57.090 19-Dec-34 17.27 6.62% GS 2051 $ M 08-Sep-17 11-Sep-17 2000.0 0.0000 93.480 00 07.130 28-Nov-51 34.21 6.84% GS 2022 $ M 22-Sep-17 25-Sep-17 3000.0 915.500 100.700 36.676 19-Dec-22 5.23 6.68% GS 2031 $ M 22-Sep-17 25-Sep-17 8000.0 3840.000 98.470 00 16.851 17-Sep-31 13.98 6.57% GS 2033 $ M 22-Sep-17 25-Sep-17 2000.0 0.000000 95.1200 67.079 05-Dec-33 16.19 7.06% GS 2046 $ M 22-Sep-17 25-Sep-17 2000.0 0.0000 97.3500 Gross Nominal Amount Raised 189000.0 0 Weighted Average Yield 6.77 Weighted Average Maturity 14.58 7.280 2 $ - Reissues/Price based auctions # New Issue/Yield Based Auction M-Multiple Price based auction 10-Oct-46 29.04 i

Name of Security Date of Auction Statement 2:Treasury Bills Issued During Q1 FY 17-18 Date of Issue Competitive amount raised ii Non- Gross Competitive Nominal amount raised amount raised (Amount in `crore) Cut off Yield (%) 364 DTB 12-Apr-17 13-Apr-17 6000.0 0.0 6000.0 6.22 364 DTB 26-Apr-17 27-Apr-17 6000.0 0.0 6000.0 6.45 364 DTB 9-May-17 11-May-17 6000.0 0.0 6000.0 6.48 364 DTB 24-May-17 25-May-17 6000.0 0.0 6000.0 6.47 364 DTB 7-Jun-17 8-Jun-17 6000.0 0.0 6000.0 6.43 364 DTB 21-Jun-17 22-Jun-17 6000.0 2974.0 8974.0 6.38 182 DTB 5-Apr-17 6-Apr-17 6000.0 2725.7 8725.7 6.18 182 DTB 19-Apr-17 20-Apr-17 6000.0 2.0 6002.0 6.31 182 DTB 3-May-17 4-May-17 6000.0 1251.5 7251.5 6.39 182 DTB 17-May-17 18-May-17 6000.0 45.0 6045.0 6.44 182 DTB 31-May-17 1-Jun-17 6000.0 3000.0 9000.0 6.39 182 DTB 14-Jun-17 15-Jun-17 6000.0 3910.0 9910.0 6.33 182 DTB 28-Jun-17 29-Jun-17 6000.0 1502.5 7502.5 6.33 91 DTB 5-Apr-17 6-Apr-17 8000.0 3960.9 11960.9 5.86 91 DTB 12-Apr-17 13-Apr-17 8000.0 12540.0 20540.0 5.98 91 DTB 19-Apr-17 20-Apr-17 8000.0 9552.0 17552.0 6.11 91 DTB 26-Apr-17 27-Apr-17 8000.0 7550.0 15550.0 6.19 91 DTB 3-May-17 4-May-17 8000.0 17162.4 25162.4 6.23 91 DTB 9-May-17 11-May-17 8000.0 12300.0 20300.0 6.27 91 DTB 17-May-17 18-May-17 8000.0 3560.0 11560.0 6.27 91 DTB 24-May-17 25-May-17 8000.0 10160.3 18160.3 6.27 91 DTB 31-May-17 1-Jun-17 8000.0 2004.5 10004.5 6.31 91 DTB 7-Jun-17 8-Jun-17 8000.0 6770.8 14770.8 6.27 91 DTB 14-Jun-17 15-Jun-17 8000.0 3140.0 11140.0 6.27 91 DTB 21-Jun-17 22-Jun-17 8000.0 888.1 8888.1 6.27 91 DTB 28-Jun-17 29-Jun-17 8000.0 1755.9 9755.9 6.27 1,82,000.0 1,06,755.5 2,88,755.5

Statement 3: List of Dated Securities Outstanding at end-sept 2017 Nomenclature Date of maturity Outstanding Stock (` Crore) of which: MSS 6.25% 2018 (conv) 02-Jan-18 16,886.80-7.83% GS 2018 11-Apr-18 73,000.00-8.24% GS 2018 22-Apr-18 75,000.00-10.45% GS 2018 30-Apr-18 3,716.00-5.69 % GS 2018(Conv)] 25-Sep-18 16,130.00-12.60% GS 2018 23-Nov-18 12,631.88-5.64% GS 2019 02-Jan-19 10,000.00-6.05% GS 2019 02-Feb-19 53,000.00-7.28% GS 2019 03-Jun-19 53,000.00-6.05% GS 2019 (con) 12-Jun-19 11,000.00-6.90% GS 2019 13-Jul-19 45,000.00-10.03% GS 2019 09-Aug-19 6,000.00-6.35% GS 2020 (con) 02-Jan-20 61,000.00-8.19% GS 2020 16-Jan-20 74,000.00-10.70% GS 2020 22-Apr-20 6,000.00-7.80% GS 2020 03-May-20 75,000.00-8.27% GS 2020 09-Jun-20 73,000.00-8.12% GS 2020 10-Dec-20 76,000.00 - FRB 2020 21-Dec-20 13,000.00-11.60% GS 2020 27-Dec-20 5,000.00-7.80% GS 2021 11-Apr-21 66,000.00-7.94% GS 2021 24-May-21 49,425.00-10.25% GS 2021 30-May-21 26,213.32-8.79% GS 2021 08-Nov-21 83,000.00-8.20% GS 2022 15-Feb-22 57,632.33-8.35% GS 2022 14-May-22 77,000.00-8.15% GS 2022 11-Jun-22 83,000.00-8.08% GS 2022 02-Aug-22 68,969.41-5.87% GS 2022 (conv) 28-Aug-22 11,000.00-8.13% GS 2022 21-Sep-22 70,495.28-6.84% GS 2022 19-Dec-22 63,000.00-6.30% GS 2023 09-Apr-23 13,000.00-7.16% GS 2023 20-May-23 77,100.00-1.44% II GS 2023 05-Jun-23 1,152.55-6.17% GS 2023 (conv) 12-Jun-23 14,000.00-8.83% GS 2023 25-Nov-23 83,000.00-7.68% GS 2023 15-Dec-23 88,132.01 - IINSS -Cumulative 1.5% GS 2023 25-Dec-23 64.84-7.35% GS 2024 22-Jun-24 90,168.02-8.40% GS 2024 28-Jul-24 90,000.00 - FRB 2024 07-Nov-24 83965.0280-9.15% GS 2024 14-Nov-24 92,000.00-7.72% GS 2025 25-May-25 86,000.00-8.20% GS 2025 24-Sep-25 90,000.00-5.97 % GS 2025 (Conv) 25-Sep-25 16,687.95-7.59% GS 2026 11-Jan-26 87,000.00-8.33% GS 2026 09-Jul-26 90,000.00-6.97% GS 2026 06-Sep-26 91,000.00-10.18% GS 2026 11-Sep-26 15,000.00-8.15% GS 2026 24-Nov-26 86,489.21-8.24% GS 2027 15-Feb-27 93,388.55-6.79% GS 2027 15-May-27 73,000.00-8.26% GS 2027 02-Aug-27 73,427.33-8.28% GS 2027 21-Sep-27 89,252.24-6.01% GS GS 2028 (C Align) 25-Mar-28 15,000.00-8.60% GS 2028 02-Jun-28 84,000.00-6.13% GS 2028 04-Jun-28 11,000.00-7.59% GS 2029 20-Mar-29 88,000.00 - Contd. iii

Nomenclature Date of maturity Outstanding Stock (` Crore) of which: MSS 6.79% GS 2029 26-Dec-29 118801.1230-7.88% GS 2030 19-Mar-30 89,000.00-7.61% GS 2030 09-May-30 85,000.00-9.20% GS 2030 30-Sep-30 61,884.55-8.97% GS 2030 05-Dec-30 90,000.00-6.68% GS 2031 17-Sep-31 17,000.00-8.28% GS 2032 15-Feb-32 90,687.11-8.32% GS 2032 02-Aug-32 89,434.05-7.95% GS 2032 28-Aug-32 89,000.00-8.33% GS 2032 21-Sep-32 1,522.48-8.24% GS 2033 10-Nov-33 87275.0000-6.57% GS 2033 05-Dec-33 36,000.00-7.50% GS 2034 10-Aug-34 90,000.00-7.73% GS 2034 19-Dec-34 86,000.00 - FRB 2035 25-Jan-35 350.00-7.40% GS 2035 09-Sep-35 52245.0000-8.33% GS 2036 07-Jun-36 86,000.00-6.83% GS 2039 19-Jan-39 13,000.00-8.30% GS 2040 02-Jul-40 90,000.00-8.83% GS 2041 12-Dec-41 90,000.00 8.30% GS 2042 31-Dec-42 90,000.00 9.23% GS 2043 23-Dec-43 79,472.28 8.17% GS 2044 01-Dec-44 86,000.00 8.13% GS 2045 22-Jun-45 73,000.00 7.06% GS 2046 10-Oct-46 47,000.00 6.62% GS 2051 28-Nov-51 36,000.00-7.72% GS 2055 26-Oct-55 38,000.00 - Total 4,948,599 iv

Statement 4: Maturity Profile of Government Securities as on End-September 2017 Year of maturity Outstanding Stock (` crore) 2017-18 16,887 2018-19 243,478 2019-20 250,000 2020-21 248,000 2021-22 282,271 2022-23 373,465 2023-24 276,449 2024-25 356,133 2025-26 279,688 2026-27 375,878 2027-28 250,680 2028-29 183,000 2029-30 207,801 2030-31 236,885 2031-32 107,687 2032-33 179,957 2033-34 97,275 2034-35 176,350 2035-36 52,245 2036-37 86,000 2037-38 - 2038-39 13,000 2039-40 - 2040-41 90,000 2041-42 90,000 2042-43 90,000 2043-44 79,472 2044-45 86,000 2045-46 73,000 2046-47 47,000 2051-52 36,000 2055-56 38,000 Total 4,948,599 v

Statement 5:Calendar for Auction of Treasury Bills during Oct December 2017 (Amount in ` crore) Date of Auction 91 Days 182 Days 364 Days Total Oct 4, 2017 7,000 2,000 2,000 11,000 Oct 11, 2017 7,000 2,000 2,000 11,000 Oct 17, 2017 7,000 2,000 2,000 11,000 Oct 25, 2017 7,000 2,000 2,000 11,000 Nov 1, 2017 7,000 2,000 2,000 11,000 Nov 8, 2017 7,000 2,000 2,000 11,000 Nov 15, 2017 7,000 2,000 2,000 11,000 Nov 22, 2017 7,000 2,000 2,000 11,000 Nov 29, 2017 7,000 2,000 2,000 11,000 Dec 6, 2017 7,000 2,000 2,000 11,000 Dec 13, 2017 7,000 2,000 2,000 11,000 Dec 20, 2017 7,000 2,000 2,000 11,000 Dec 27, 2017 7,000 2,000 2,000 11,000 Total 91,000 26,000 26,000 1,43,000 vi

Statement 6: Calendar for Auction of G-Secs Bills during Oct 17 - March 2018 (Amount in ` Crore) Sr. No. Week of Auction Amount Security-Wise allocation 1 Oct 2-6, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 2 Oct 9-13, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 3 Oct 23-27, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 4 Oct 30- Nov 3, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 5 Nov 6-10, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 6 Nov 13-17, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 7 Nov 20-24, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 8 Nov 27- Dec 1, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 9 Dec 4-8, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 10 Dec 18-22, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 11 Dec 25-29, 2017 15,000 i) 5-9 Years for ` 3,000 crore ii) 10-14 Years for ` 8,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 2,000 crore 12 Jan 1-5, 2018 18,000 i) 5-9 Years for ` 4,000 crore ii) 10-14 Years for ` 9,000 crore iii) 15-19 Years for ` 2,000 crore iv) 20 Years & Above for ` 3,000 crore vii

13 Jan 8-12, 2018 5,000 i) 5-9 Years for ` 1,000 crore ii) 10-14 Years for ` 2,000 crore iii) 15-19 Years for ` 1,000 crore iv) 20 Years & Above for ` 1,000 crore 14 Jan 15-19, 2018 5,000 i) 5-9 Years for ` 1,000 crore ii) 10-14 Years for ` 2,000 crore iii) 15-19 Years for ` 1,000 crore iv) 20 Years & Above for ` 1,000 crore 15 Jan 22-26, 2018 5,000 i) 5-9 Years for ` 1,000 crore ii) 10-14 Years for ` 2,000 crore iii) 15-19 Years for ` 1,000 crore iv) 20 Years & Above for ` 1,000 crore 16 Jan 29 -Feb 2, 2018 5,000 i) 5-9 Years for ` 1,000 crore ii) 10-14 Years for ` 2,000 crore iii) 15-19 Years for ` 1,000 crore iv) 20 Years & Above for ` 1,000 crore 17 Feb 5-9, 20187 5,000 i) 5-9 Years for ` 1,000 crore ii) 10-14 Years for ` 2,000 crore iii) 15-19 Years for ` 1,000 crore iv) 20 Years & Above for ` 1,000 crore Total 2,08,000 viii