RBI announces results of state government securities auction

The Reserve Bank of India (RBI) has released the results of the yield/price-based auction of state government securities conducted on June 16, 2026. A total of ₹21,600 crore was proposed to be raised, but ₹20,461.29 crore was accepted across various states and union territories. Maharashtra raised the highest amount, while Gujarat did not accept any bids for its 12-year security.

State government securities (SGS) are debt instruments issued by states to fund their expenditures. In this auction, securities with varying tenors ranging from 6 to 12 years were offered. Andhra Pradesh, Assam, Gujarat, Jammu and Kashmir, Maharashtra, Punjab, Rajasthan, Telangana, and Uttarakhand participated in the auction.

Notably, Gujarat declined to accept any bids for its 12-year security, while Punjab and Uttarakhand accepted partial amounts for their 7-year and 9-year securities, respectively. Maharashtra raised funds through re-issues of securities with yields ranging from 7.44% to 7.78%.

The cut-off yields varied across states, reflecting market demand and investor sentiment. For example, Andhra Pradesh's 6-year security had a yield of 7.28%, while Assam's 10-year security was accepted at 7.66%. These yields indicate the cost of borrowing for the states.

This auction highlights the ongoing efforts of state governments to manage their finances through market borrowings, with the RBI acting as the facilitator for these transactions.

Key Points
- RBI conducted a state government securities auction on June 16, 2026.
- ₹21,600 crore was proposed; ₹20,461.29 crore was accepted.
- Maharashtra raised the highest amount; Gujarat declined 12-year bids.
- Punjab and Uttarakhand accepted partial amounts for certain securities.
- Cut-off yields varied, reflecting borrowing costs for states.

FAQ

Which state raised the highest amount in the auction?
Maharashtra raised the highest amount through re-issues of securities.

Why did Gujarat decline bids for its 12-year security?
The source does not specify reasons; Gujarat chose not to accept any bids.