Policy Rates and Liquidity

The RBI conducted a yield/price based auction of State Government Securities (SGS) on 4 August 2026. The auction covered a total issue size of ₹26,850 crore. The securities were re‑issued across multiple tenors ranging from 7 years to 15 years. The cut‑off yields observed across the issues spanned from a low of 7.1194 % for the 12‑year West Bengal security to a high of 7.789 % for the 2032 Uttar Pradesh issue, indicating state‑specific pricing based on investor demand.

Capital Markets and Flows

The aggregate amount accepted amounted to ₹24,086.048 crore, representing an overall subscription rate of approximately 89.7 %. Detailed state‑wise outcomes are as follows:

  • Assam: Target ₹1,000 cr; accepted ₹930.030 cr; cut‑off price 99.79, yield 7.5897 % (partial acceptance).
  • Bihar: Two issues – ₹800 cr at 99.41/7.5106 % and ₹1,200 cr at 102.41/7.6988 %; both fully subscribed.
  • Chhattisgarh: Two issues – ₹500 cr each; yields 7.4999 % and 7.6808 % respectively; fully subscribed.
  • Gujarat: Two issues – ₹1,000 cr and ₹1,500 cr; received no bids; amount accepted zero.
  • Himachal Pradesh: Two issues – ₹400 cr and ₹300 cr; yields 7.7018 % and 7.6967 %; fully subscribed.
  • Jammu & Kashmir: Two issues – ₹500 cr each; yields 7.7010 % and 7.7022 %; fully subscribed.
  • Jharkhand: ₹1,000 cr; yield 7.3508 %; fully subscribed.
  • Kerala: Two issues – ₹800 cr and ₹1,000 cr; yields 7.3208 % and 7.6624 %; fully subscribed.
  • Manipur: ₹250 cr; yield 7.6862 % (cut‑off price 99.60); fully subscribed.
  • Odisha: ₹1,000 cr; yield 6.94 % (price not quoted); fully subscribed.
  • Sikkim: ₹1,000 cr; yield 7.64 % (price not quoted); fully subscribed.
  • Tamil Nadu: ₹200 cr; yield 7.7298 % (price 98.78); fully subscribed.
  • Telangana: Multiple issues totalling ₹5,000 cr across tenors 10‑15 years; yields ranging from 7.6297 % to 7.7011 % with cut‑off prices around 99.18‑99.42; fully subscribed.
  • Uttar Pradesh: Three issues – ₹1,000 cr each; yields 7.1404 % (price 99.99), 7.6946 % (price 99.04), and 7.7011 % (price 100.96); fully subscribed.
  • Uttarakhand: Partial acceptance of ₹106.018 cr for a 12‑year security; cut‑off price 106.018, yield 7.64 %.
  • West Bengal: Three issues – ₹500 cr, ₹500 cr, and ₹500 cr; yields 7.1194 %, 7.6992 %, and 7.7057 % respectively; fully subscribed.

The total amount accepted of ₹24,086.048 crore reflects strong demand overall, with notable exceptions for Gujarat (zero acceptance) and partial fills for Assam and Uttarakhand.

Regulatory and Policy Measures

The auction was conducted under the RBI’s yield/price based auction framework, aimed at facilitating efficient price discovery for state securities and managing liquidity in the government securities market. The RBI’s communication, signed by Deputy General Manager Ajit Prasad of the Department of Communication, underscores the transparency of the process and provides detailed issue‑wise outcomes for market participants.

The results demonstrate robust participation across most states, with yields clustering around the 7.5‑7.7 % band, while highlighting pockets of limited demand in specific issues.