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RBI retains some bids at state loan sale

The Reserve Bank of India said on Wednesday it was making partial allotments on bids for some state loans received at Tuesday's sale.

The central bank said it had received bids for 59.16 billion rupees against a notified amount of Rs 38 billion at Tuesday's sale of 10-year loans by 27 state governments.

As the loans of eight states -- Goa, Haryana, Karnataka, Maharashtra, Manipur, Punjab, Tamilnadu and Uttaranchal got excess bids -- partial allotments ranging from 46.24 per cent to 89.53 per cent were made in these cases, a RBI statement said.

"Excess subscription amounting to about Rs 6.09 billion in these cases is being refunded to the applicants on Wednesday," it said.

A central bank spokeswoman said the RBI was retaining the remaining Rs 53.07 billion.

The RBI offered 10.35 per cent 10-year loans of 27 state governments for sale on Tuesday.

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