The Reserve Bank of India released the state government securities auction results for July 28, 2026. In total, 16 securities from eight states raised ₹19,280 crore against a notified amount of ₹18,100 crore. The strong demand signals healthy investor appetite for state bonds.
Key Details of the State Government Securities Auction
Andhra Pradesh raised ₹1,000 crore through its 2039 bond at a cut-off yield of 7.6105%, and ₹1,600 crore via its 2051 bond at 7.68%. Gujarat, meanwhile, raised ₹1,000 crore each for its 2035 and 2038 securities at cut-off yields of 7.3685% and 7.4799% respectively. Both Gujarat securities attracted over 5,000 crore in competitive bids combined.
Maharashtra exercised the greenshoe option and accepted additional amounts across three bonds. It raised ₹1,250 crore on its 2031 bond, ₹3,000 crore on its 2039 bond, and ₹2,000 crore on its 2049 bond. As a result, its total allotment significantly exceeded the original notified amounts.
Punjab accepted a partial amount of ₹730 crore on its 2030 security, but additionally raised ₹1,200 crore on its 2039 bond. Rajasthan raised ₹1,500 crore on its 2044 bond and the full ₹2,000 crore on its 2053 bond. Tamil Nadu and Telangana each raised ₹1,000 crore on their respective securities.
What This Means for Investors in State Government Securities
Overall, the auction drew 1,047 competitive bids totalling over ₹68,254 crore — nearly four times the notified amount. This oversubscription clearly reflects strong institutional interest in state development loans. However, only 204 competitive bids were ultimately accepted.
Non-competitive bids also performed well, with 118 bids received for a combined ₹1,024 crore. Additionally, all non-competitive bids were fully accepted except a minor partial allotment under Rajasthan’s 2044 issue. Weighted average yields ranged from approximately 6.99% for Maharashtra’s shorter-tenure 2031 bond to 7.69% for longer-dated securities.
Therefore, investors seeking relatively safe, state-backed instruments continue to find state government securities attractive. The healthy demand across multiple states suggests stable borrowing conditions for state governments in the current fiscal year.
Source: RBI Press Releases
