RBI to auction ₹22,200 crore worth of state government securities, including re-issues from Assam, Bihar, and other states, with auctions conducted via price-based bidding.
States to Raise ₹22,200 Crore via SGS Auction
The Reserve Bank of India will conduct auctions for state government securities (SGS) to raise a total of ₹22,200 crore (face value) on behalf of multiple state governments. The participating states include Assam, Bihar, Haryana, Kerala, Madhya Pradesh, Punjab, and Rajasthan, each offering securities with varying tenors and interest rates.
Assam will reissue its 7.83% SGS 2046, originally issued on April 29, 2026, for ₹800 crore through a price-based auction. Bihar will raise ₹2,000 crore by reissuing 7.73% SGS 2052. Other states, including Kerala (₹3,500 crore), Madhya Pradesh (₹3,800 crore), and Punjab (₹2,600 crore), will also participate in re-issuance programmes. The auctions are scheduled to be conducted via non-competitive and competitive bidding mechanisms, with settlement expected within two working days.
These auctions are part of the states’ borrowing programmes under the fiscal consolidation framework approved by the Ministry of Finance. The RBI’s role includes conducting the auction, price discovery, and ensuring orderly participation by banks, insurance companies, and primary dealers. The success of these auctions will depend on investor appetite amid prevailing yield levels and liquidity conditions, particularly following recent VRRR operations and macroeconomic uncertainty.