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RBI Allots ₹44,330 Cr in State Bond Auction; Yields Range 6.91%-7.70%

The Reserve Bank of India has announced the results of its latest State Government Securities auction, with a total allotment of ₹44,330 crore against a notified amount of ₹43,130 crore. Major states like Karnataka, Maharashtra, and Tamil Nadu were significant issuers, raising thousands of crores through bonds with tenors ranging from 5 to 30 years. The auction saw strong demand, with competitive bids worth over ₹2 lakh crore received. Cut-off yields for the securities varied from 6.91% to 7.7037%, reflecting state-specific demand and tenor dynamics.

Key Points: RBI State Bond Auction: ₹44,330 Cr Allotted, Yields Up to 7.70%

  • ₹44,330 crore allotted vs ₹43,130 crore notified
  • Karnataka raised ₹2,000 crore across multiple securities
  • Cutoff yields ranged between 6.91% and 7.70%
  • Maharashtra, Tamil Nadu among major state issuers
2 min read

RBI allots Rs 44,330 cr in state bond auction; cutoff yields range between 6.91%-7.70%

RBI announces results of state bond auction with ₹44,330 crore allotted. Karnataka, Maharashtra, Tamil Nadu among top issuers. Check cutoff yields and state-wise details.

"The cut-off yields across securities ranged from 6.91 per cent to 7.7037 per cent. - RBI Release"

New Delhi, March 3

The Reserve Bank of India announced the results of the auction of State Government Securities held on March 2, 2026, with total allotment amounting to Rs 44,330 crore against a notified amount of Rs 43,130 crore.

According to the RBI, competitive bids worth Rs 2,07,027.237 crore were received across securities, of which Rs 42,564.241 crore were accepted. Non-competitive bids aggregating Rs 2,179.872 crore were received, with Rs 1,765.759 crore accepted.

Among major issuances, Rs 1,000 crore each was allotted for Assam SGS 2035 (9-year tenor) at a weighted average yield of 7.4748 per cent and Chhattisgarh SGS 2038 (12-year) at 7.5311 per cent. Chhattisgarh SGS 2043 (17-year) and Gujarat SGS 2032 (6-year 6-month) were also fully allotted at Rs 1,000 crore each.

Gujarat accepted an additional Rs 500 crore in the 10-year Gujarat SGS 2036, taking the total allotment in that security to Rs 1,500 crore.

Karnataka raised Rs 2,000 crore each through multiple securities, including SGS 2033 (7-year 6-month), SGS 2034 (8-year), re-issue of 7.47 per cent SGS 2036, SGS 2037 (11-year 6-month) and SGS 2039 (13-year).

Madhya Pradesh mobilised Rs 1,800 crore through SGS 2035 (9-year), Rs 1,600 crore each via SGS 2039 (13-year) and SGS 2049 (re-issue of 7.72 per cent), and Rs 1,300 crore through SGS 2041 (15-year).

Maharashtra accepted Rs1,550 crore each in SGS 2034 (8-year) and re-issue of 7.43 per cent SGS 2040, including an additional Rs 350 crore in both securities. It also raised Rs 800 crore each through SGS 2047 (21-year) and SGS 2052 (26-year).

Tamil Nadu raised Rs 2,000 crore through SGS 2031 (5-year) and SGS 2035 (9-year), Rs 1,000 crore through SGS 2033 (7-year) and SGS 2036 (re-issue of 7.43 per cent), and Rs 1,000 crore through SGS 2056 (30-year).

Telangana mobilised Rs 1,000 crore via SGS 2046 (20-year) and SGS 2055 (29-year), Rs 500 crore through SGS 2052 (26-year) and Rs 1,000 crore via SGS 2046, with weighted average yields ranging between 7.6500 per cent and 7.6692 per cent.

Uttar Pradesh raised Rs 500 crore through the re-issue of 7.57 per cent SGS 2036 and Rs 1,500 crore via SGS 2041 (15-year). Uttarakhand raised Rs 1,000 crore through SGS 2041 (15-year), while West Bengal mobilised Rs 1,500 crore via re-issue of 7.67 per cent SGS 2046 and Rs 2,000 crore through SGS 2049 (23-year).

The cut-off yields across securities ranged from 6.91 per cent to 7.7037 per cent. The weighted average yields varied depending on tenor and state-specific demand dynamics, said the RBI release.

- ANI

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Reader Comments

P
Priya S
As someone from Tamil Nadu, I'm glad to see our state raising funds. But I have a respectful criticism: there should be more transparency on *exactly* which projects these bonds will finance. Public should know if it's for new metros, water projects, or schools. 🏗️
R
Rohit P
The oversubscription (Rs 2 lakh crore bids for ~44k crore) shows strong investor confidence in state finances. RBI managing this smoothly. Interesting to see the yield spread - Assam at 7.47% for 9 years vs. some longer tenors at similar rates. Market dynamics at play.
S
Sarah B
Working in finance in Mumbai, this is a positive signal. States are accessing long-term debt at controlled costs. The 30-year bond from Tamil Nadu is notable – shows investors are willing to bet on India's long-term stability. Good for overall fiscal health.
V
Vikram M
Concerned about the debt burden on states though. UP, WB, Maharashtra all borrowing heavily. Who will pay the interest? Ultimately us taxpayers. Hope there is a plan for revenue generation to service these loans and not just more taxes on the common man.
K
Kavya N
The details are a bit complex for a layperson, but the gist is clear: states need money for development. As long as it leads to better roads, electricity, and hospitals in states like Assam and Chhattisgarh, it's a good step. 👍

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