Several state governments, including Assam and Bihar, will auction a total of ₹23,300 crore in securities through yield-based auctions. Tenors range from 9 to 20 years, with the proceeds aimed at meeting fiscal requirements.
States to Auction ₹23,300 Crore in Securities
The Reserve Bank of India has announced upcoming auctions of State Government Securities on behalf of several state governments. The aggregate amount to be raised is ₹23,300 crore (face value), with auctions structured as yield-based bidding.
Participating states include Assam and Bihar, each offering ₹1,000 crore of 9-year securities. Other states are also issuing longer tenor bonds, including up to 20-year instruments, reflecting long-term borrowing strategies. The RBI will act as the auctioneer and settlement agent.
These auctions are part of states’ market borrowing programs to finance fiscal deficits. Investors, particularly banks and mutual funds, are expected to participate actively given the relatively high yields in comparison to central government securities of similar maturities.
