On October 13, 2026, the RBI conducted a yield-based auction of State Government Securities (SGS), through which Assam, Bihar, and Chhattisgarh raised ₹3,805 crore at yields ranging from 8.10% to 8.1585%.
Assam, Bihar, Chhattisgarh raise funds via SGS auction
The Reserve Bank of India conducted a yield/price-based auction of State Government Securities (SGS) on October 13, 2026. Assam raised ₹805 crore at a cut-off yield of 8.10% for its 11-year SGS 2037 issue. Bihar successfully raised its full notified amount of ₹1,000 crore in the re-issued 7.71% SGS 2044 at 8.1475%, and ₹2,000 crore in the 7.76% SGS 2051 re-issue at 8.1585%. Chhattisgarh raised ₹600 crore through re-issue of its 7.40% SGS 2035 bond.
The auction results indicate steady demand for state government paper, despite divergent subscription outcomes—Assam’s partial subscription may reflect market sentiment or allocation capacity. Yields in the 8.10–8.16% range suggest competitive pricing in the state-level debt market, influenced by credit perception and prevailing interest rate conditions.
These operations form part of states’ market borrowings under their annual fiscal plans. For financial institutions and investors, SGS auctions provide exposure to state credit risk with relatively higher yields than central government securities. The auction process, managed by RBI, ensures transparency and efficient price discovery in sub-sovereign debt capital raising.