RBI Raises Rs 17,000 Crore in State Government Securities Auction

The Reserve Bank of India's recent auction saw five states raise a total of Rs 17,000 crore through State Government Securities. The auction, which attracted bids worth nearly Rs 70,000 crore, resulted in cut-off yields ranging from 6.99% to 7.36%.

New Delhi [India] October 21 (ANI): The Reserve Bank of India (RBI) announced the results of the auction of State Government Securities (SGS) conducted on October 20, 2025, with a total notified amount of Rs 17,000 crore raised across multiple state issuances. 

The securities were issued for varying tenors ranging from seven to twenty-six years, with cut-off yields broadly in the range of 6.99 to 7.36 per cent. 

According to the auction results, eleven separate securities were offered by the states of Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh. The total competitive bids received amounted to Rs 69,599.48 crore across 780 bids, of which Rs 16,607.85 crore were accepted. Non-competitive bids worth Rs 392.15 crore were also allotted in full.

Chhattisgarh, raised Rs 2,000 crore through two issuances of Rs 1,000 crore each under its 15-year 2040 and 11-year 2032 securities. The 7.14 per cent SGS 2032 was a re-issue of an earlier bond floated in March 2025. The cut-off yields stood at 7.34 per cent for the 2040 series and 7.04 per cent for the re-issue, with weighted average yields at 7.27 per cent and 7.01 per cent, respectively.

Maharashtra, which offered four separate securities, mobilised a total of Rs 5,000 crore. These included the re-issues of 7.24 per cent SGS 2034 and 7.26 per cent SGS 2041, along with new 11-year and 25-year bonds maturing in 2036 and 2050. Cut-off yields for Maharashtra ranged between 7.13 and 7.29 per cent.

Rajasthan too raised Rs 5,000 crore through three tranches, re-issues of its 7.57 per cent SGS 2043 and new 10-year (2035) and 26-year (2051) bonds. The yields settled between 7.19 and 7.36 per cent. The state received competitive bids of over Rs 15,000 crore in offers against its notified amount.

Tamil Nadu garnered Rs 4,000 crore through four securities maturing in 2032, 2035 and 2055. The 7-year Tamil Nadu SGS 2032 fetched a cut-off yield of 6.99 per cent, the lowest among all issuances in the auction. While the long-term 7.44 per cent SGS 2055 carried a yield of 7.35 per cent. Weighted average yields for the state's borrowings ranged between 6.99 and 7.32 per cent.

Meanwhile, Uttar Pradesh raised Rs 2,000 crore through a single 10-year security maturing in 2035, at a cut-off yield of 7.15 per cent. The issue attracted bids worth Rs 6,965 crore from 84 participants, with a weighted average yield of 7.15 per cent.

The total allotment through Monday's auction stood at Rs 17,000 crore. (ANI)

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