State governments and the Union Territory of Jammu and Kashmir offered securities worth ₹24,400 crore in an RBI-conducted auction. Maharashtra was the largest issuer by accepted amount, while Punjab received partial acceptance on one security.
BKK Bureau, New Delhi | 19 October 2026 | 6:28 PM IST
State governments and the Union Territory of Jammu and Kashmir raised ₹23,016.418 crore through an auction of state government securities, according to the Reserve Bank of India. The securities offered for re-issue had a combined proposed amount of ₹24,400 crore, leaving ₹1,383.582 crore unaccepted.
The auction results, released by the RBI on October 19, 2026, covered 11 states and the Union Territory. Securities were offered across maturities ranging from four years to 31 years. The auction included both fixed-rate securities with specified yields and re-issues whose cut-off yields were determined through the bidding process.
Maharashtra recorded the largest accepted amount. It raised ₹8,000 crore through four securities: ₹1,500 crore through a 2034 security, ₹2,000 crore through a 15-year security, ₹2,000 crore through a 2044 security and ₹2,500 crore through a 2054 security. The reported cut-off yields for these securities ranged from 7.9794% to 8.1845%, with the 15-year security carrying a stated yield of 8.14%.
Madhya Pradesh accepted ₹6,500 crore through three securities. These included ₹1,000 crore through a four-year security at 7.77%, ₹2,000 crore through a 2038 security at a cut-off yield of 8.1393% and ₹1,500 crore through a 2048 security at 8.2370%. The state had offered a total of ₹6,500 crore in the auction.
Rajasthan accepted ₹4,500 crore across three securities. The state raised ₹1,000 crore through a 10-year security at 8.04%, ₹1,500 crore through a 16-year security at 8.23% and ₹1,000 crore through a 2057 security at a cut-off yield of 8.1768%.
Telangana accepted the full ₹2,000 crore it offered through two securities. The 2039 security, with a stated original coupon of 7.53%, was re-issued at a cut-off yield of 8.1466%, while the 2049 security, carrying an original coupon of 7.65%, was re-issued at 8.1864%.
Other states also received full or near-full acceptance. Gujarat accepted ₹2,000 crore, including ₹1,000 crore through a 2035 security at 7.9627% and ₹1,000 crore through a 12-year security at 8.06%. Jammu and Kashmir accepted ₹800 crore through a 2044 security at 8.1980%, while Goa accepted ₹200 crore through a 2037 security at 8.1004%.
Meghalaya accepted the full ₹100 crore offered through a 2039 security at 8.1488%. Tripura accepted ₹800 crore across two securities: ₹300 crore through an eight-year security at 8.03% and ₹500 crore through a 24-year security at 8.19%.
Punjab’s results were mixed. It accepted the full ₹800 crore offered through a 2043 security at a cut-off yield of 8.2002%, but accepted only ₹316.418 crore against an offer of ₹700 crore for a 2035 security. The RBI noted that Andhra Pradesh did not accept any amount against its ₹1,000 crore offer for a 2051 security.
Auction breakdown
- Amount offered: ₹24,400 crore
- Amount accepted: ₹23,016.418 crore
- Largest accepted amount: Maharashtra, at ₹8,000 crore
- Partial acceptance: Punjab, ₹316.418 crore against ₹700 crore offered for one security
- No amount accepted: Andhra Pradesh’s ₹1,000 crore offer for a 2051 security
Why it matters
The auction provides an official snapshot of state governments’ market-based borrowing during the period, including the amounts raised and the yields accepted across different maturities. The partial acceptance for one Punjab security and the zero acceptance for Andhra Pradesh’s offer were notable exceptions to otherwise substantial borrowing by participating issuers.
Source: Reserve Bank of India
Report discrepancies
Comments