Document Title, Issuing Authority, Reference, Date

Issuing Authority: Reserve Bank of India (RBI), Department of Communication

Reference: Press Release 2026-2027/1014

Date: 1 September 2026

Capital Markets and Flows

The RBI disclosed the complete auction outcomes for State Government Securities (SGS) conducted on 1 September 2026. The auction covered 25 states and union territories, with a cumulative notified amount of approximately ₹25,000 crore. Each state’s issue listed the tenor, coupon rate, issue date, number of competitive and non‑competitive bids received, cut‑off yields, cut‑off prices, accepted bids, partial‑allotment percentages and weighted‑average yields.

Key observations:

  • Assam SGS 2046 (₹1,000 crore, 7.62% coupon) received 54 competitive bids totalling ₹2,839 crore; cut‑off yield was 7.7585% and cut‑off price ₹98.61. Accepted competitive bids amounted to ₹971.994 crore (97.20% of the issue). Non‑competitive bids were minimal (5 bids, ₹28.006 crore) at a price of ₹98.61.
  • Bihar SGS 2035 (₹800 crore, 7.42% coupon) attracted 43 competitive bids for ₹1,390 crore; cut‑off yield 7.6494%, price ₹98.53. Accepted competitive bids were ₹799.935 crore (99.99% of issue). Non‑competitive bids were negligible (2 bids, ₹0.065 crore) at ₹98.72.
  • Bihar SGS 2051 (₹1,200 crore, 25‑year tenor) saw 28 competitive bids totalling ₹4,120 crore; cut‑off yield 7.7600%, price ₹100. Accepted competitive bids were ₹1,176.659 crore (33.82% of issue). Non‑competitive bids (5) amounted to ₹23.341 crore at ₹100.11.
  • Chhattisgarh SGS 2035 (₹500 crore, 7.40% coupon) received 39 competitive bids for ₹1,605 crore; cut‑off yield 7.6403%, price ₹98.46. Accepted competitive bids were ₹499.866 crore (99.97% of issue). Non‑competitive bids (2) were ₹0.134 crore at ₹98.61.
  • Kerala SGS 2033 (₹800 crore, 7.30% coupon) and Kerala SGS 2039 (₹1,000 crore, 7.56% coupon) together attracted 102 competitive bids for ₹4,945 crore; weighted‑average yields 7.4391% and 7.7495% respectively. Accepted competitive bids were ₹793.149 crore and ₹944.933 crore.
  • Madhya Pradesh SGS 2044 (₹1,600 crore, 7.61% coupon) and Madhya Pradesh SGS 2056 (₹2,000 crore, 30‑year tenor) together received 111 competitive bids for ₹8,275 crore; weighted‑average yields 7.7990% and 7.7500%. Accepted competitive bids were ₹1,537.997 crore and ₹1,934.069 crore.
  • Manipur SGS 2040 (₹100 crore, 7.64% coupon), Odisha SGS 2030 (₹1,000 crore, 6.94% coupon), Odisha SGS 2040 (₹1,000 crore, 7.64% coupon) and Sikkim SGS 2039 (₹200 crore, 7.58% coupon) together attracted 144 competitive bids for ₹7,170 crore; weighted‑average yields ranged from 7.1692% to 7.8302%. Accepted competitive bids totaled ₹2,274.332 crore.
  • Tamil Nadu SGS 2036, 2041, 2051 and Telangana SGS 2039 together received 267 competitive bids for ₹13,530 crore; weighted‑average yields between 7.6006% and 7.7695%. Accepted competitive bids summed to ₹5,503.176 crore.
  • Telangana SGS 2044, 2049 and Uttar Pradesh SGS 2032, 2042 together attracted 158 competitive bids for ₹5,200 crore; weighted‑average yields 7.7753%, 7.7378%, 7.3269%, and 7.7409% respectively. Accepted competitive bids were ₹1,969.889 crore.
  • Uttar Pradesh SGS 2051, Uttarakhand SGS 2038, West Bengal SGS 2031, West Bengal SGS 2044 together received 190 competitive bids for ₹7,653 crore; weighted‑average yields ranged from 7.2978% to 7.7997%. Accepted competitive bids amounted to ₹4,406.979 crore.
  • West Bengal SGS 2052 (₹2,200 crore, 7.65% coupon) received 35 competitive bids for ₹5,605 crore; cut‑off yield 7.7596%, price ₹98.77. Accepted competitive bids were ₹2,157.848 crore (38.5% of issue). Non‑competitive bids were ₹42.152 crore at ₹98.81.

Partial allotments were recorded for several issues. Notably, Chhattisgarh SGS 2042 received a partial allotment of ₹390.030 crore out of the notified ₹500 crore. Uttarakhand SGS 2038 received no allotment despite bids.

Overall, the auction was broadly oversubscribed, with competitive bid‑to‑notified ratios ranging from 1.2× (Kerala) to 5.1× (Assam). Weighted‑average yields across all issues clustered around 7.70%, reflecting prevailing market conditions for state‑level debt.

Financial Stability and Inclusion

The extensive participation by both competitive and non‑competitive bidders, including a large number of institutional investors, underscores the depth of the Indian debt market and the continued appetite for state‑government securities. The RBI’s transparent disclosure of auction outcomes supports market confidence and aids price discovery for future issuances.

The partial allotment to Chhattisgarh and the zero‑allocation to Uttarakhand illustrate the RBI’s adherence to auction rules, allocating securities based on bid pricing and demand, thereby maintaining fairness and market discipline.

Regulatory and Policy Measures

The RBI, through this circular, re‑affirms its role in conducting regular auctions of state‑government securities to fund state fiscal deficits and manage liquidity in the government securities market. The detailed tabulation of bids, yields, and allotments provides market participants with actionable data for pricing future issues.

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