States raise Rs 18,400 crore via government securities auction

The Reserve Bank of India (RBI) on Tuesday said that 14 states and Union Territories (UTs) mobilised Rs 18,400 crore through the auction of state government securities (SGS) held on 16 September 2025. The entire notified amount was accepted. In the northeast, Assam locked in Rs 1,500 crore for a two-decade stretch, securing funding at a cut-off yield of 7.47%, while neighboring Mizoram accessed Rs 150 crore for 11 years at a yield slightly higher at 7.48%. Sikkim chose a single 10-year issuance for Rs 500 crore at a yield of 7.41%. Nagaland, bucking the trend of longer tenors, raised Rs 400 crore for just five years at a yield of 7.14%, one of the lowest in the auction. Goa, meanwhile, opted for a more modest Rs 100 crore issuance, settling on a 10-year tenor and a relatively lower yield of 7.39%. Haryana and Jharkhand both presented dual-tranche issuances. Haryana brought in Rs 2,000 crore, split equally over 14 and 17 years, drawing yields of 7.43% and 7.45%. Jharkhand, borrowing over nine and sixteen years, secured Rs 2,000 crore with yields of 7.33% for the shorter duration and 7.44% for the longer one. West Bengal entered the market with two hefty tranches of Rs 1,500 crore each at 19 and 21 years, both at a yield of 7.47%, underscoring robust long-term demand. Jammu and Kashmir tapped the market for Rs 400 crore with a 15-year instrument at 7.47%. Odisha followed a diversified approach, splitting its Rs 1,000 crore issuance between four and fifteen-year papers, at yields of 6.77% and 7.43% respectively—interest in the shorter duration was especially firm, resulting in the lowest yield of all auctions. Maharashtra re-issued three distinct bonds of Rs 1,000 crore each, dated 2029, 2033, and 2034. The yields for these ranged from 6.7278% to 7.1998%, showing investor preference for the established credit credentials of the state's securities. Puducherry raised a total of Rs 350 crore, split over six and eleven years, settling at yields of 7.09 and 7.48%, respectively. Tamil Nadu conducted three simultaneous issuances, each of Rs 1,000 crore but staggered by tenor – six, seven, and eight years – with yields nudging up from 7.05% to 7.19% as the duration extended. Telangana, meanwhile, made the boldest move, locking in Rs 1,000 crore for a marathon 28-year tenor at a yield of 7.46%.