Multiple state governments, including Assam, Bihar, and Gujarat, will auction ₹31,200 crore in securities on October 13, 2026, via yield and price-based methods.
States to Auction ₹31,200 Crore in Securities
Several state governments are set to raise ₹31,200 crore through auctions of state development loans (SDLs) on October 13, 2026. The participating states include Assam (₹1,000 crore, 11-year tenure, yield-based auction), Bihar (₹3,000 crore through re-issuance of existing 7.71% and 7.76% securities), and Gujarat (₹2,000 crore, 20-year tenure).
Such auctions are conducted via the RBI’s e-auction platform and form part of the states’ borrowing programmes approved under market borrowing limits. The re-issuance of existing securities, as seen in Bihar’s case, enhances liquidity by increasing tradable volumes. These instruments are eligible for statutory liquidity ratio (SLR) and are often subscribed by banks.
Legal and finance teams advising institutional investors should review creditworthiness, yields, and auction mechanics. The move reflects continued fiscal demand from state governments and may influence bond yields and credit spreads in the near term. Compliance with SDL subscription norms under the RBI Act is essential.
