RBI reports fully subscribed State government securities auction across seven States

The Reserve Bank of India (RBI) has published the results of a yield/price-based auction of State Government Securities (SGS), reporting that the entire notified amount of **₹20,100 crore** was **accepted**. The auction covered issuances and re-issues from **Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Rajasthan and Tamil Nadu**, signalling continued market appetite for State development financing across multiple maturities.

According to the RBI press release (2026-2027/964), each participating State saw its **full intended amount accepted**, indicating smooth fund-raising conditions for sub-national borrowers through the formal debt market.

Full acceptance across States, with a spread of maturities

The notified borrowing programme was distributed across different tenors, reflecting the varied financing needs of States as well as investor preferences across the yield curve.

• **Andhra Pradesh** raised **₹2,600 crore** in two re-issues: **₹1,000 crore** via a re-issue of *7.56% Andhra Pradesh SGS 2039* (cut-off **price 99.10 / yield 7.6695%**) and **₹1,600 crore** via a re-issue of *7.68% Andhra Pradesh SGS 2051* (cut-off **price 99.89 / yield 7.6891%**).

• **Gujarat** raised **₹2,000 crore** across two securities with yields of **7.47% (10-year)** and **7.59% (15-year)**, with **₹1,000 crore accepted** in each.

• **Haryana** raised **₹3,000 crore**, with **₹1,000 crore accepted** at **7.56% (9-year)** and **₹2,000 crore accepted** at **7.69% (22-year)**.

• **Maharashtra** raised **₹5,000 crore**, split across three maturities: **₹1,000 crore** at **7.09% (5-year)**, **₹2,400 crore** at **7.63% (13-year)**, and **₹1,600 crore** at **7.70% (23-year)**.

• **Punjab** raised **₹2,000 crore** through re-issues: **₹500 crore** via *7.02% Punjab SGS 2030* (cut-off **price 99.14 / yield 7.2764%**) and **₹1,500 crore** via *7.62% Punjab SGS 2039* (cut-off **price 98.94 / yield 7.7498%**).

• **Rajasthan** raised **₹3,500 crore** via re-issues: **₹1,500 crore** through *7.68% Rajasthan SGS 2044* (cut-off **price 99.75 / yield 7.7050%**) and **₹2,000 crore** through *7.65% Rajasthan SGS 2053* (cut-off **price 99.56 / yield 7.6876%**).

• **Tamil Nadu** raised **₹2,000 crore** across three re-issues: **₹1,000 crore** via *7.49% Tamil Nadu SGS 2036* (cut-off **price 99.66 / yield 7.5382%**), **₹500 crore** via *7.62% Tamil Nadu SGS 2041* (cut-off **price 99.82 / yield 7.6395%**), and **₹500 crore** via *7.70% Tamil Nadu SGS 2051* (cut-off **price 100.07 / yield 7.6929%**).

What this suggests for State finances and markets

A fully accepted auction across seven States can be read as a constructive signal for India’s State-level financing ecosystem. SGS auctions are a core channel through which States fund capital expenditure and public services, while also providing institutional investors with relatively stable, long-tenor instruments.

The mix of re-issues and multiple maturities also helps deepen liquidity in existing lines, aiding price discovery and secondary market activity. Importantly, the distribution of tenors—from shorter buckets such as **5 years** (Maharashtra) to longer tenors such as **23 years** (Maharashtra) and re-issues extending to **2053** (Rajasthan)—shows that the market is willing to absorb both near- and long-term State paper.

For businesses and infrastructure-linked sectors, smoother State borrowing operations can support more predictable planning and execution of development programmes, as States align financing with long-term project horizons.

**Why it matters:** A fully accepted ₹20,100 crore SGS auction indicates steady investor demand for State bonds, helping States raise funds in an orderly manner and supporting long-term development spending through transparent market-based financing.