The Reserve Bank of India has announced an auction of State Government Stock for an aggregate face value of ₹26,850 crore. The auction is scheduled for Tuesday, August 04, 2026, and will be conducted through RBI’s Core Banking Solution, E-Kuber.
The securities are being offered by 17 State Governments and Union Territory administrations. The sale includes both re-issued State Government Securities and new stocks, depending on the state and tenor. RBI said the auction will be conducted either on a price basis or a yield basis, as specified for each stock.
State-wise amount to be raised
Madhya Pradesh has the largest notified borrowing in this auction at ₹3,600 crore. Uttar Pradesh follows with ₹3,000 crore. Gujarat, Tamil Nadu and Telangana have each notified ₹2,500 crore. Bihar and Odisha have each proposed to raise ₹2,000 crore.
The state-wise amounts listed by RBI are:
- Assam: ₹1,000 crore
- Bihar: ₹2,000 crore
- Chhattisgarh: ₹1,000 crore
- Gujarat: ₹2,500 crore
- Himachal Pradesh: ₹700 crore
- Jammu and Kashmir: ₹1,000 crore
- Jharkhand: ₹1,000 crore
- Kerala: ₹1,800 crore
- Madhya Pradesh: ₹3,600 crore
- Manipur: ₹250 crore
- Odisha: ₹2,000 crore
- Sikkim: ₹200 crore
- Tamil Nadu: ₹2,500 crore
- Telangana: ₹2,500 crore
- Uttar Pradesh: ₹3,000 crore
- Uttarakhand: ₹300 crore
- West Bengal: ₹1,500 crore
Key securities in the auction
Several states are offering re-issues of earlier State Government Securities. These include Assam’s 7.56% SGS 2036, Bihar’s 7.42% SGS 2035 and 7.92% SGS 2051, Gujarat’s 7.38% SGS 2035 and 7.51% SGS 2038, and Uttar Pradesh’s 7.14% SGS 2032, 7.59% SGS 2042 and 7.79% SGS 2051.
Madhya Pradesh will offer re-issues of 7.61% Madhya Pradesh SGS 2044 for ₹1,600 crore and 7.90% Madhya Pradesh SGS 2056 for ₹2,000 crore. Telangana will offer four re-issued securities maturing in 2039, 2044, 2049 and 2055, for a combined ₹2,500 crore.
Odisha will offer two stocks of ₹1,000 crore each with tenors of 4 years and 14 years, both on a yield basis. Tamil Nadu will offer three stocks: ₹1,000 crore for 10 years, ₹1,000 crore for 15 years and ₹500 crore for 25 years, also on a yield basis. Uttarakhand will raise ₹300 crore through a 12-year stock on a yield basis.
Bidding schedule and investor participation
RBI said both competitive and non-competitive bids must be submitted electronically on E-Kuber on August 04, 2026. Competitive bids will be accepted between 10:30 A.M. and 11:30 A.M. Non-competitive bids will be accepted between 10:30 A.M. and 11:00 A.M.
Under the Scheme for Non-competitive Bidding Facility, up to 10 per cent of the notified amount of each stock will be allotted to eligible individuals and institutions. A single bid per stock will be subject to a maximum limit of one per cent of the notified amount. Individual investors may also place non-competitive bids through the Retail Direct portal.
RBI stated that physical bids will be accepted only in the event of system failure. Such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Results, payment and interest
The auction results will be announced on August 04, 2026. Successful bidders will make payment during banking hours on Wednesday, August 05, 2026, at Mumbai and at the respective RBI Regional Offices.
The stock will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter. For new State Government Stocks, the interest rate will be the rate determined by RBI at the auction. Interest on new stock will be paid half-yearly on February 05 and August 05 each year until maturity.
For re-issued Government Stock, the interest rate will be the rate fixed on the original issue date of that stock, and interest will be paid on a half-yearly basis until maturity.
RBI said the State Government Stocks will be governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007. Investment in these securities will qualify as eligible investment in Government Securities for banks’ Statutory Liquidity Ratio requirement 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.