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Debt Market News

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(23 Sep 2025, 15:27)

States raise Rs 25,000 crore via government securities auction


The Reserve Bank of India (RBI) on Tuesday said that 11 states mobilised Rs 25,000 crore through the auction of state government securities (SGS) held on September 23, 2025. The notified amount was Rs 27,000 crore, of which Rs 2,000 crore was not accepted by Maharashtra in two re-issues.

Bihar raised Rs 4,000 crore through two long-tenor issuances of 20 and 25 years, both at a yield of 7.45%. Chhattisgarh borrowed Rs 500 crore via a re-issue of its 7.00% bond due 2029, priced at 101.14 to yield 6.67%. Gujarat tapped the market for Rs 1,500 crore at a 7.07% yield on a seven-year security.

Kerala secured Rs 1,000 crore at 7.44% for 25 years, while Madhya Pradesh raised Rs 3,000 crore through 18- and 21-year securities at yields of 7.43% and 7.44%, respectively. Maharashtra, meanwhile, accepted Rs 1,000 crore through an 11-year issuance at 7.27%, but did not take any bids for re-issues of its 2045 and 2046 papers.

Punjab borrowed Rs 1,000 crore by re-issuing its 6.98% bond due 2033, priced at 97.56 to yield 7.39%. Rajasthan tapped the market for Rs 1,500 crore over a 10-year tenor at 7.32%.

Tamil Nadu conducted four tranches, each of Rs 1,000 crore, including fresh issuances and re-issues across tenors of 10 to 19 years. The cut-off yields ranged from 7.02% to 7.18%. Telangana raised Rs 5,000 crore across four tranches, spread over maturities of 22 to 26 years, all at a uniform yield of 7.44%.

West Bengal borrowed Rs 2,500 crore, split between Rs 1,000 crore at 11 years yielding 7.42% and Rs 1,500 crore through a re-issue of its 2044 bond, priced at 100.21 to yield 7.45%.


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