State Securities Auctions See Strong Demand Surge: SBI successfully Raises ₹17,900 Cr Across Various Maturities

State Securities Auctions See Strong Demand Surge: SBI successfully Raises ₹17,900 Cr Across Various Maturities​

Overall Market Performance and Investor Appetite​

The Reserve Bank of India (RBI) concluded the Yield/Price Based Auction of State Government Securities on June 23, 2026. The auction demonstrated robust investor demand across various maturities and state issuers. A total of ₹16,900 crore was initially sought from investors for these securities.

Remarkably, the accepted amount reached ₹17,900 crore, indicating a surplus in demand over the planned issuance targets. This positive outcome reflects strong market confidence in the creditworthiness and stability of the state governments involved.

Key Highlights Across State Issuances​

The auction covered a range of states and tenors, with several issuers seeing successful tranches at favorable yields. Tamil Nadu participated extensively, seeking ₹3,000 crore across three separate tranches. The RBI successfully raised this amount for various maturities in the state's securities portfolio.

Madhya Pradesh was another active participant, raising a combined total of ₹2,800 crore through two different issues. These issues spanned tenors up to 2048, reflecting both short-term and long-duration investor participation. Kerala also saw significant appetite, with the RBI accepting all sought funds for the state's SGS.

Competitive Trends in Auction Results​

The results showed varied performance metrics across different issuing states. For instance, Gujarat successfully raised ₹3,500 crore across two tranches, substantially exceeding its initial planned issuance of ₹2,000 crore. This oversubscription indicated acute market interest in the state's securities.

Madhya Pradesh managed to achieve a strong yield on one tranche, with the accepted amount being fully realized at a cut-off price of 101.04/7.4600 for its SGS 2034 security. Similarly, Tamil Nadu achieved attractive rates, notably achieving a 7.3806% yield on one of its securities.

Detailed Breakdown by State and Tenor​

The auction results detail the successful raising of funds across numerous state categories. Bihar raised ₹2,400 crore in total through two issues, with cut-offs noted at 100.43/7.6199 and 100.49/7.7828 for different tenors.

Uttar Pradesh successfully raised ₹1,700 crore across its two tranches. These securities included a 15-year tenure issue with a successful cut-off price of 7.76, demonstrating sustained investor interest in the state's bonds. Himachal Pradesh and Delhi also saw good demand, with specific yields being achieved for their respective tenors up to 23 years.