State governments raised Rs 38,300 crore at the latest yield- and price-based auction of State Government Securities held on January 27, according to data released by the Reserve Bank of India, with most of the notified amount finding takers despite elevated yields.

The auction had a notified amount of Rs 39,800 crore, of which Rs 38,300 crore was accepted. Maharashtra did not accept any bids for the re-issue of its 7.48% State Government Security maturing in 2045, while all other issuances saw full acceptance.

Karnataka was the largest borrower, mobilising Rs 6,000 crore across three tranches. This included a 5.5-year paper at a cut-off yield of 7.15%, a re-issue of the 7.32% Karnataka SGS 2033 at a yield of 7.3407%, and a 9.5-year security at 7.48%.

Andhra Pradesh raised Rs 2,500 crore through 9-year and 17-year bonds at yields of 7.48% and 7.59%, respectively. Assam borrowed Rs 1,000 crore via a 10-year security at 7.59%, while Bihar raised Rs 3,000 crore through 14-year and 24-year papers at yields of 7.63% and 7.60%.

Gujarat mobilised Rs 2,000 crore through a 10-year bond at 7.47%, Haryana raised Rs 1,000 crore through a 14-year security at 7.57%, and Kerala borrowed Rs 2,000 crore via a 13-year paper at 7.64%.

Maharashtra raised Rs 3,000 crore through two re-issues, including the 7.24% SGS 2034 at a yield of 7.4308% and the 7.43% SGS 2040 at 7.5392%. Odisha raised Rs 2,000 crore across 7-year and 12-year securities at yields of 7.34% and 7.56%, respectively.

Punjab raised Rs 2,000 crore via a 7-year bond at 7.62%, Rajasthan mobilised Rs 3,300 crore through a 9-year bond at 7.52% and a re-issue of the 7.54% SGS 2036 at a yield of 7.5904%. Tamil Nadu raised Rs 4,000 crore across four maturities ranging from 8 to 30 years, including a re-issue of its 7.58% SGS 2056, with yields spanning 7.39% to 7.5654%.

Telangana borrowed Rs 1,500 crore through 18-year and 22-year securities at yields of 7.64% and 7.58%, while Uttarakhand raised Rs 1,000 crore via a 12-year bond at 7.59%. West Bengal mobilised Rs 4,000 crore across 18-year and 21-year tenors at yields of 7.67% and 7.62%.

The near-full acceptance of the notified amount suggests steady investor demand for state government paper, even as borrowing costs remain elevated across longer maturities.