State government securities auction allocation of ₹21,350 crore completed

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State government securities auction allocation

Highlights

The full allocation of ₹21,350 crore in the state development loan auction held on July 7, 2026 was made across deferred papers of several states.
The minimum cut-off yield was 7.07% for West Bengal SGS 2031 and the maximum was 7.6708% for Jammu & Kashmir SGS 2046.
Several long-term re-issued papers were cut at premium prices, investor demand remained strong, and some issuances saw partial allocation in the non-competitive category.

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

Auction Results and State Allocations

According to the Reserve Bank of India press release, the auction on July 7, 2026 saw a full allocation of ₹21,350 crore in state development loans. The issued securities included papers from Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Sikkim, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.

Bihar raised ₹800 crore and ₹1,200 crore through securities maturing in 2035 and 2051, respectively, while Chhattisgarh completed allocations of ₹250 crore each through 2035 and 2042 securities. Himachal Pradesh raised ₹700 crore via the 2039 security, Jammu & Kashmir allocated ₹500 crore each in 2038 and 2046 securities, and Jharkhand raised ₹300 crore via the 2033 security.

Kerala raised ₹800 crore and ₹1,000 crore through 2033 and 2039 securities, respectively. Madhya Pradesh raised ₹1,600 crore and ₹2,000 crore through 2044 and 2056 securities, while Telangana allocated ₹1,500 crore each through 2043 and 2056 re-issues. Uttar Pradesh raised ₹1,000 crore each through 2032, 2042, and 2051 securities, and West Bengal completed allocations of ₹1,000 crore, ₹1,500 crore, and ₹2,200 crore through 2031, 2044, and 2052 securities, respectively.

Among other states, Manipur raised ₹250 crore via the 2040 security, Sikkim raised ₹200 crore via the 2039 security, and Uttarakhand raised ₹300 crore through the 2044 re-issue. In several issuances, competitive bids far exceeded the notified amount, indicating strong investor demand.

Yield Levels and Market Signals

The lowest cut-off yield in this auction was 7.07% for West Bengal SGS 2031, while the highest was 7.6708% for Jammu & Kashmir SGS 2046. The cut-off yield for Uttar Pradesh SGS 2032 was 7.14%, for Kerala SGS 2033 and Jharkhand SGS 2033 it was 7.30%, and for Bihar SGS 2035 and Chhattisgarh SGS 2035 it was 7.42% and 7.40%, respectively.

Among long-term papers, the cut-off yield for Madhya Pradesh SGS 2056 was 7.6500%, for Telangana SGS 2056 it was 7.6404%, and for West Bengal SGS 2052 it was 7.65%. Several re-issued papers were cut at premium prices, including Bihar SGS 2051, Jammu & Kashmir SGS 2046, Madhya Pradesh SGS 2056, Telangana SGS 2043, Telangana SGS 2056, Uttar Pradesh SGS 2051, and Uttarakhand SGS 2044.

Allocations were made in both competitive and non-competitive categories, though some issuances saw only partial allocation in the non-competitive segment, such as Kerala SGS 2039, Madhya Pradesh SGS 2044, Uttar Pradesh SGS 2042, and West Bengal SGS 2044. This pattern indicates that investor demand continues to vary based on risk-pricing across different maturities and states.

In our previous report we discussed valuation and growth-related questions raised after NSE's proposed IPO and its DRHP. The article noted that despite strong market share and high profitability in cash equity and derivatives, investors are now weighing the next growth drivers, revenue diversification, and regulatory/governance risks more closely.

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