States to Raise ₹21,600 Crore via Government Securities Auction

Nine Indian states are set to raise ₹21,600 crore through government securities auctions scheduled for June 16, 2026. The Reserve Bank of India will conduct the auction on its Core Banking Solution (E-Kuber) system, enabling both institutional and retail participation. Andhra Pradesh leads with ₹4,600 crore, followed by Maharashtra with ₹4,000 crore and Rajasthan with ₹4,000 crore. The auction includes both new securities with maturities ranging from 6 to 12 years and re-issued securities at previously determined rates. Individual investors can participate through the RBI Retail Direct portal, with non-competitive bidding available for up to 10% of notified amounts per security.

The state securities auction encompasses borrowing needs across India's major and emerging economies. Andhra Pradesh is raising ₹1,000 crore through a 6-year yield auction and ₹3,600 crore via re-issues of existing securities at 7.79% and 7.81% coupon rates. Maharashtra, India's financial hub, is mobilising ₹4,000 crore through re-issues at 7.55%, 7.77%, and 7.79% rates across different tenors. Rajasthan and Punjab are also significant borrowers at ₹4,000 crore and ₹3,000 crore respectively. Smaller states like Uttarakhand, Jammu and Kashmir, and Telangana are raising ₹500 crore to ₹2,000 crore each. The auction mechanism employs both competitive and non-competitive bidding windows. Competitive bids will be submitted between 10:30 AM and 11:30 AM, whilst non-competitive bids will be accepted until 11:00 AM on June 16, 2026. Results will be announced the same day, with settlement on June 17, 2026. The non-competitive facility allows eligible individuals and institutions to bid for up to 1% of notified amount per security, with aggregate allocation capped at 10% of total issuance.

State government securities serve as critical fiscal instruments within India's federal framework, bridging state revenue deficits and capital expenditure requirements. These securities qualify as eligible investments for banks' Statutory Liquidity Ratio (SLR) compliance under Section 24 of the Banking Regulation Act, 1949, ensuring institutional demand. The coupon rates observed in this auction—ranging from 7.54% to 7.92%—reflect prevailing interest rate conditions and state-specific credit profiles. Re-issuance of securities at these fixed rates provides investors with certainty whilst maintaining consistency with original issuance terms. The introduction of retail participation through RBI Retail Direct portal represents financial market democratisation, allowing individual investors direct access to state bonds previously dominated by institutional investors. The minimum investment of ₹10,000 with multiples thereafter maintains accessibility for retail participants. Successful bidders receive half-yearly interest payments on December 17 and June 17, with securities governed by the Government Securities Act, 2006 and Government Securities Regulations, 2007. The ready forward facility available on these securities enhances liquidity, enabling investors to undertake repo transactions. Technical execution through E-Kuber system ensures transparent, electronic auction processes monitored by RBI's Core Banking Operations Team and Integrated Debt Management Division (IDMD).