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Debt Market News

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(26 Aug 2025, 16:32)

States raise Rs 28,892 crore via bond auction; Maharashtra rejects bids


State governments mobilised Rs 28,892.04 crore through the latest yield and price-based auction of State Development Loans (SDLs), lower than the notified amount of Rs 34,150 crore, as per RBI data released 26 August 2025.

Maharashtra refrained from accepting any bids across four maturities ranging from 4 to 10 years, leading to the shortfall.

Among major borrowers, Madhya Pradesh raised Rs 4,800 crore across 18- and 20-year tenors at 7.57%, while Rajasthan garnered Rs 5,000 crore through three issuances, with yields between 7.49% and 7.57%. Kerala accepted only Rs 1,988 crore against a notified Rs 3,000 crore, including a 25-year issuance at 7.58%.

West Bengal raised Rs 3,500 crore via 21- and 22-year bonds at 7.75–7.77%, and Tamil Nadu secured Rs 3,000 crore, including a Rs 1,000 crore re-issue of its 7.09% 2035 bonds. Haryana tapped Rs 2,000 crore, which included a Rs 1,000 crore re-issue of its 2034 bonds.

Other issuances included Gujarat (Rs 2,000 crore at 7.25% for 9 years), Odisha (Rs 1,000 crore at 7.25% for 8 years), Punjab (Rs 1,500 crore via a 2050 re-issue), Telangana (Rs 2,000 crore with tenors up to 30 years at 7.54%), and Assam, which accepted only Rs 204 crore of its notified Rs 450 crore.

The weighted cut-off yields ranged between 6.84% and 7.82%, reflecting investor appetite for longer tenors amid elevated borrowing needs.


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