The Reserve Bank of India conducted a state government securities auction on July 14, 2026. States raised a total of ₹24,570.05 crore against a notified amount of ₹24,800 crore. The auction covered 21 securities across nine states, attracting strong investor interest overall.
Key Auction Details and Cut-off Yields
Andhra Pradesh raised ₹3,800 crore across three securities with tenors ranging from 10 to 30 years. The cut-off yields for Andhra Pradesh securities ranged between 7.51% and 7.72%. Meanwhile, Gujarat successfully raised ₹2,000 crore across two tranches, with cut-off yields at 7.38% and 7.51% for its 9-year and 12-year papers respectively.
Maharashtra dominated the auction with the largest borrowing programme. The state raised ₹10,600 crore across six securities maturing between 2031 and 2054. Additionally, cut-off yields for Maharashtra ranged from 7.04% to 7.72%, reflecting varied demand across tenors. Tamil Nadu, Telangana, Rajasthan, and Punjab also completed their borrowings successfully.
Meghalaya and Mizoram participated with smaller notified amounts of ₹300 crore and ₹100 crore respectively. However, Punjab accepted a partial amount of ₹770.05 crore against a notified ₹1,000 crore for the re-issue of its 7.55% SGS 2033 bond. Therefore, total allotment fell marginally short of the notified amount.
What This State Government Securities Auction Means for Investors
The auction received 1,369 competitive bids totalling ₹74,067.65 crore, indicating robust demand. As a result, states could raise funds at competitive rates despite the large aggregate supply. The weighted average yields across securities remained broadly in the 7.37%–7.77% range.
Non-competitive bids also saw healthy participation, with 180 bids worth ₹1,384.85 crore received in total. However, accepted non-competitive bids stood at ₹1,312.27 crore, as partial allotments applied in some cases. For example, Tamil Nadu’s SGS 2041 saw non-competitive bids partially allotted at 73.59%.
These state government securities are a key instrument for states to fund their fiscal deficits. Additionally, they offer investors a relatively safe, sovereign-backed investment option. The successful auction reinforces steady market confidence in state-level borrowing programmes during the current fiscal year.
Source: RBI Press Releases
