State governments offer securities auction issuance worth ₹21,350 crore

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State government securities auction

Highlights

The Reserve Bank of India conducted an auction for state government securities issuance worth ₹21,350 crore on the e-Kuber system on July 7, 2026.
This issuance will see new and re-issued securities of various maturities issued by 13 states, with a specified bidding timeline.
10% of the notified amount of each issuance will be reserved for non-competitive bidding, and these securities will be included in banks' SLR.

This article was translated from the original. Read the original version by our correspondent here.

Auction Size and Timeline

According to the Reserve Bank of India, this auction will be conducted on its core banking solution, the e-Kuber system, on Tuesday, July 7, 2026. This offering includes Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Sikkim, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.

The total issuance of ₹21,350 crore comprises new securities with varying maturities and re-issuances from several states. Bihar, Jammu & Kashmir, Madhya Pradesh, Telangana, Uttar Pradesh, and Uttarakhand are among the entities raising funds through re-issuance of previously issued securities.

Competitive bids must be submitted electronically between 10:30 AM and 11:30 AM, and non-competitive bids between 10:30 AM and 11:00 AM. Physical bids are accepted only in case of system failure.

Banking, Retail Investment, and Market Impact

Up to 10 percent of the notified amount of each issuance is allocated to eligible individuals and institutions under the non-competitive bidding facility. Retail investors can also bid through the Retail Direct portal, with a maximum limit of 1 percent of the notified amount per single bid.

The Reserve Bank of India determines the maximum yield or minimum price at which bids will be accepted, and securities are issued at a minimum face value of ₹10,000 and in multiples of ₹10,000 thereafter. Auction results will be announced on July 7, 2026.

The interest rates on new state government securities are set in the auction, with interest payable semi-annually on January 8 and July 8 each year. These securities qualify as eligible government investments for banks under the Statutory Liquidity Ratio (SLR) and are also eligible for the ready forward facility.

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