The Reserve Bank of India has announced an auction of State Government Stock for an aggregate amount of ₹20,200 crore. The auction will be held on August 18, 2026, through the RBI Core Banking Solution, known as E-Kuber.
The securities have been offered by 12 states and Union Territories. The sale includes both re-issued State Government Securities and yield-based auctions for specified tenors. The face value of the total notified amount is ₹20,200 crore.
State-wise amounts in the auction
According to the RBI release, the notified amounts are spread across Assam, Bihar, Delhi, Jammu and Kashmir, Kerala, Madhya Pradesh, Mizoram, Odisha, Telangana, Uttar Pradesh, Uttarakhand and West Bengal.
- Assam will raise ₹1,000 crore through re-issue of 7.56% Assam SGS 2036.
- Bihar will raise ₹2,000 crore in two parts: ₹1,000 crore through 7.66% Bihar SGS 2041 and ₹1,000 crore through 7.71% Bihar SGS 2044.
- Delhi will raise ₹1,000 crore through two re-issued securities of ₹500 crore each, linked to Delhi SGS 2033 and Delhi SGS 2041.
- Jammu and Kashmir will raise ₹500 crore through re-issue of 7.91% Jammu and Kashmir SGS 2046.
- Kerala will raise ₹2,200 crore through re-issues of Kerala SGS 2042 and Kerala SGS 2049.
- Madhya Pradesh will raise ₹4,400 crore, including re-issues of Madhya Pradesh SGS 2034 and 2038, and a 22-year yield-based auction of ₹2,000 crore.
- Mizoram will raise ₹100 crore through a 15-year yield-based auction.
- Odisha will raise ₹2,000 crore, including a 6-year yield-based auction of ₹1,000 crore and re-issue of 7.70% Odisha SGS 2044 for ₹1,000 crore.
- Telangana will raise ₹2,000 crore through re-issues of Telangana SGS 2037 and Telangana SGS 2055.
- Uttar Pradesh will raise ₹1,000 crore through two re-issued securities of ₹500 crore each, linked to Uttar Pradesh SGS 2038 and Uttar Pradesh SGS 2046.
- Uttarakhand will raise ₹300 crore through re-issue of 7.70% Uttarakhand SGS 2048.
- West Bengal will raise ₹3,700 crore through re-issues of West Bengal SGS 2035 and West Bengal SGS 2047.
Bid timings and investor participation
Both competitive and non-competitive bids must be submitted electronically on E-Kuber on August 18. Competitive bids will be accepted from 10:30 AM to 11:30 AM. Non-competitive bids will be accepted from 10:30 AM to 11:00 AM.
Under the non-competitive bidding facility, up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions. The limit for a single bid per stock is 1% of the notified amount. Individual investors can also place bids under the non-competitive scheme through the RBI Retail Direct portal.
The RBI said physical bids will be accepted only if there is a system failure. Such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Issue size, pricing and payment
The yield or price expected by a bidder must be stated up to two decimal points. Investors may submit more than one competitive bid at the same or different yields or prices. However, the aggregate amount of bids from a bidder must not exceed the notified amount for each state.
The RBI will decide the maximum yield or minimum price at which bids will be accepted. The minimum nominal amount for issue will be ₹10,000, with further investments in multiples of ₹10,000.
The auction results will be announced on August 18, 2026. Successful bidders will have to make payment during banking hours on August 19, 2026, at Mumbai and at the respective RBI Regional Offices.
Interest and regulatory treatment
For new State Government Stock, interest will be paid half-yearly on February 19 and August 19 until maturity, at rates determined by the RBI at the auctions. For re-issued Government Stock, the interest rate will be the rate fixed on the original issue date of that stock, and interest will continue to be paid half-yearly until maturity.
The stocks will be governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007. Investment in these State Government Stocks will count as eligible investment in government securities for banks for Statutory Liquidity Ratio purposes under Section 24 of the Banking Regulation Act, 1949. The stocks will also qualify for the ready forward facility.
Source: Reserve Bank of India Press Releases.