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States to Borrow Rs 45,960 Crore via RBI Auction on March 10

The Reserve Bank of India will conduct an auction for State Government Securities on March 10, 2026, facilitating a total borrowing of Rs 45,960 crore for multiple states and union territories. Karnataka leads the borrowing with Rs 10,000 crore, followed by Tamil Nadu at Rs 8,000 crore and Madhya Pradesh at Rs 5,800 crore. The auction will be held electronically on the RBI's E-Kuber platform, accepting both competitive and non-competitive bids, with a portion reserved for retail investors. Successful bidders must make their payments on March 11, 2026.

Key Points: RBI SGS Auction: States to Raise Rs 45,960 Crore on March 10

  • Multi-state borrowing of Rs 45,960 crore
  • Auction via RBI's E-Kuber platform on March 10
  • Karnataka is largest borrower at Rs 10,000 crore
  • Includes fresh issuances and re-issues of securities
  • Retail investors can participate via RBI Retail Direct
3 min read

Multiple states to borrow Rs 45,960 crore through RBI SGS auction on March 10

Multiple Indian states will borrow Rs 45,960 crore through an RBI State Government Securities auction on March 10, 2026. Details inside.

"Karnataka will be the largest borrower in the auction, raising Rs 10,000 crore - RBI release"

New Delhi, March 7

The Reserve Bank of India has announced that multiple state governments will raise a total of Rs 45,960 crore through the auction of State Government Securities, scheduled to be conducted on March 10, 2026.

According to the Central Bank release, the securities will be issued through an auction conducted on the RBI's Core Banking Solution platform, E-Kuber. The auction will include borrowings by several states and Union Territories, with varying tenors and structures, including both fresh issuances and re-issues of existing securities.

Among the participating states, Andhra Pradesh plans to raise Rs 3,000 crore through three securities with tenors of 13, 15 and 17 years. Arunachal Pradesh will raise Rs 190 crore with a 20-year tenor, while Assam will borrow Rs 900 crore through a 15-year security. Delhi will raise Rs 1,000 crore via a 10-year security.

Gujarat intends to raise Rs 2,000 crore through two securities with tenors of seven years and six months, and 11 years, with an additional borrowing option of Rs 500 crore for each. Haryana will issue securities worth Rs 3,000 crore across tenors of four, 12 and 18 years. Meanwhile, Jammu and Kashmir will borrow Rs 900 crore with a 15-year tenor.

Karnataka will be the largest borrower in the auction, raising Rs 10,000 crore through a mix of fresh securities and re-issues. These include re-issuances of the 7.31 per cent Karnataka SGS 2033, 7.38 per cent Karnataka SGS 2034, and 7.48 per cent Karnataka SGS 2037, along with other securities with tenors of 10 years six months and 14 years.

Other states participating in the auction include Kerala, which plans to raise Rs 1,000 crore through a 23-year security, and Madhya Pradesh, which will borrow Rs 5,800 crore through securities with tenors of 10, 14 and 21 years. Smaller issuances include Rs 120 crore by Mizoram with a 15-year tenor and Rs 250 crore by Sikkim with a 10-year tenor.

Punjab will raise Rs 2,000 crore through the re-issue of the 7.62 per cent Punjab SGS 2032, originally issued in November 2022. Tamil Nadu plans to raise Rs 8,000 crore through a combination of fresh issuances and re-issued securities, including the 7.23 per cent Tamil Nadu SGS 2033 and the 7.63 per cent Tamil Nadu SGS 2056.

Additionally, Tripura will raise Rs 800 crore through a 15-year security, while Uttar Pradesh will raise Rs 3,500 crore via the re-issue of securities maturing in 2037, 2041 and 2046. West Bengal plans to borrow Rs 3,500 crore through securities with tenors of 18 and 22 years.

The RBI said both competitive and non-competitive bids for the auction must be submitted electronically on the E-Kuber system on March 10. Competitive bids will be accepted between 10:30 am and 11:30 am, while non-competitive bids will be accepted between 10:30 am and 11:00 am.

Up to 10 per cent of the notified amount of each stock will be reserved for eligible individuals and institutions under the non-competitive bidding facility, with a maximum limit of one per cent for a single bid per stock. Retail investors can also participate through the RBI's Retail Direct portal.

The results of the auction will be announced on March 10, while successful bidders will have to make payments during banking hours on March 11, 2026.

- ANI

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Reader Comments

S
Sarah B
Interesting to see the range of tenors, from 6 months to 23 years. The long-term borrowing by states like Kerala (23 years) shows they're planning for the very long haul. Smart move if the funds are invested wisely.
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Priya S
Good that retail investors can participate through RBI Retail Direct. Makes government debt accessible to common people like us. Might consider putting some savings here for a safe return. 👍
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Aman W
So many states are borrowing heavily. While it's a normal process, the total amount is significant. It makes me wonder about the overall fiscal health of states. Are we heading towards a debt trap? Need responsible spending.
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Michael C
The detailed breakdown is helpful. Notice how some states like Punjab are re-issuing older securities. This is a common refinancing strategy, but I hope the interest rates are favorable for them this time.
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Nisha Z
As someone from a smaller state, it's good to see Arunachal, Mizoram, and Sikkim also accessing funds through this auction. Development should reach all corners of the country. Jai Hind! 🇮🇳

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