Nine state governments, including Assam and Bihar, will auction securities totaling ₹23,300 crore through yield-based bidding. The auctions are part of states' market borrowings coordinated via RBI.
States to Raise ₹23,300 Crore via Securities Auction
Nine state governments have announced auctions to raise ₹23,300 crore through the sale of securities. Each state—Assam, Bihar, and seven others—are issuing nine-year tenor bonds under yield-based auctions conducted via the RBI's electronic platform. The individual allocations include ₹1,000 crore each from Assam and Bihar.
These auctions form part of the states’ market borrowing programs approved under the overall ceiling set by the Ministry of Finance. The yield-based mechanism allows market forces to determine the coupon rate, promoting transparency and efficient pricing. The RBI facilitates these auctions as part of its role in managing public debt operations for sub-sovereign entities.
For practitioners advising on public finance, municipal bonds, or institutional investments, these auctions represent key opportunities for portfolio diversification. Monitoring state-level borrowing patterns also provides insight into regional fiscal health and compliance with FRBM (Fiscal Responsibility and Budget Management) norms.
