Home India Reserve Bank of India Auction of State Government Securities...
Date: 2025-09-19 Category: Not Applicable State: Union Government Country: India

Auction of State Government Securities

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary:** This document is a press release from the Reserve Bank of India announcing the auction of State Government Securities for an aggregate amount of ₹27,000 Crore on September 23, 2025. The results will be announced on the same day, and payment by successful bidders is due on September 24, 2025. The auction will be conducted through the E-Kuber system. **Key Points / Main Content:** * **Auction Details:** * State Governments are offering to sell stock by auction. * The aggregate amount is ₹27,000 Crore (Face Value). * The auction will be conducted on September 23, 2025 (Tuesday) via the Reserve Bank of India's E-Kuber system. * Results will be announced on September 23, 2025 (Tuesday). * Payments by successful bidders are due on September 24, 2025 (Wednesday). * **Bidding Process:** * Competitive bids should be submitted between 10:30 A.M. and 11:30 A.M. on September 23, 2025. * Non-competitive bids should be submitted between 10:30 A.M. and 11:00 A.M. on September 23, 2025. * Physical bids are accepted only in case of system failure and should be submitted before auction timing ends. * The minimum amount for stock issuance is ₹10,000.00, in multiples of ₹10,000.00 thereafter. * **Stock Allotment and Interest:** * Up to 10% of the notified amount of each stock is allotted to eligible individuals and institutions, subject to a maximum limit of one per cent for a single bid per stock. * Individual investors can also place bids via the Retail Direct portal. * Interest for the new stock will be paid half-yearly on March 24 and September 24. * Interest for re-issued stock will be paid at the rate determined on the date of the original issue, on a half-yearly basis. * **State-Specific Offerings:** * Nine states (Bihar, Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Tamil Nadu) and the amount to be raised are detailed, including tenor and type of auction (Yield/Price). Telangana and West Bengal are also included in the list of States and the type of auction is detailed. **Impact Analysis:** **State Governments:** * **Impact:** Can raise funds by selling stock through auction. * **Action Required:** Offer stock for auction. **Eligible Individuals and Institutions:** * **Impact:** Have the opportunity to invest in State Government Securities. * **Action Required:** Submit competitive or non-competitive bids through the E-Kuber system or Retail Direct portal by the deadlines specified. **Banks:** * **Impact:** Investment in State Government Stocks can be reckoned as an eligible investment in Government Securities for the purpose of Statutory Liquidity Ratio (SLR). * **Action Required:** Evaluate the investment opportunity. **Reserve Bank of India:** * **Impact:** Conducts the auction and determines interest rates. * **Action Required:** Conduct the auction on September 23, 2025, announce results, and facilitate payments.

Key Entities Referenced

Reserve Bank of India: Conducts auctions for State Government Securities. State Government Securities: Stocks issued by State Governments and auctioned to raise funds. Government Securities Act, 2006: Governing act for State Government stocks. Government Securities Regulations, 2007: Regulations for State Government stocks. Banking Regulation Act, 1949, Section 24: Section relating to Statutory Liquidity Ratio (SLR), where state government stocks are considered eligible.
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प्रेस प्रकाशनी PRESS RELEASE भारतीय ररज़र्व बैंक RESERVE BANK OF INDIA वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502 September 19, 2025 Auction of State Government Securities The following State Governments have offered to sell stock by way of auction, for an aggregate amount of ₹27,000 Crore (Face Value). Additional Amount to Borrowing Sr. Type of State be raised (Greenshoe) Tenor (Year) No. Auction (₹ Crore) Option (₹ Crore) 2000 - 20 Yield 1. Bihar 2000 - 25 Yield Re-issue of 7.00% Chhattisgarh SGS 2029, 2. Chhattisgarh 500 - Price issued on September 19, 2024 3. Gujarat 1500 - 07 Yield 4. Kerala 1000 - 25 Yield 1500 - 18 Yield 5. Madhya Pradesh 1500 - 21 Yield 1000 - 11 Yield Re-issue of 7.14% 1000 - Maharashtra SGS 2045, Price 6. Maharashtra issued on July 09, 2025 Re-issue of 7.15% 1000 - Maharashtra SGS 2046, Price issued on July 02, 2025 Re-issue of 6.98% Punjab SDL 2033, 7. Punjab 1000 - Price issued on September 29, 2021 8. Rajasthan 1500 - 10 Yield 1000 - 10 Yield Re-issue of 7.05% Tamil 1000 - Nadu SGS 2031, issued Price on September 17, 2025 9. Tamil Nadu Re-issue of 7.15% Tamil 1000 - Nadu SGS 2032, issued Price on September 17, 2025 1000 - Re-issue of 7.19% Tamil Price2 Nadu SGS 2033, issued on September 17, 2025 1500 - 22 Yield 1000 - 23 Yield 10. Telangana 1000 - 24 Yield 1500 - 26 Yield 1000 500 11 Yield Re-issue of 7.47% West 11. West Bengal Bengal SGS 2044, 1500 - Price issued on September 17, 2025 Total 27000 The auction will be conducted on the Reserve Bank of India Core Banking Solution (E- Kuber) system on September 23, 2025 (Tuesday). The Government Stock up to ten per cent of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions, subject to a maximum limit of one per cent of its notified amount for a single bid per stock as per the ‘Scheme for Non-competitive Bidding Facility’. Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal (https://rbiretaildirect.org.in). Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on September 23, 2025 (Tuesday). The competitive bids should be submitted between 10:30 A.M. and 11:30 A.M. and non-competitive bids should be submitted between 10:30 A.M. and 11:00 A.M. In case of technical difficulties, Core Banking Operations Team may be contacted (email; Phone no: 022-69870466, 022-69870415). For other auction related difficulties, IDMD Auction Team can be contacted (email; Phone no: 022-22702431, 022-22705125). Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22603456, 022- 22603457,022-22603190) in the prescribed form obtainable from RBI website (https://rbi.org.in/en/web/rbi/forms) before the auction timing ends. The yield per cent per annum or the price as the case may be, expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at same/different rates of yield or prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State. The Reserve Bank of India will determine the maximum yield / minimum price at which bids will be accepted. Stock will be issued for a minimum nominal amount of ₹10,000.00 and in multiples of ₹10,000.00 thereafter.3 The results of the auction will be announced on September 23, 2025 (Tuesday) and payment by successful bidders will be made during banking hours on September 24, 2025 (Wednesday) at Mumbai and at respective Regional Offices of RBI. The new State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new stock, interest will be paid half yearly on March 24 and September 24 of each year till maturity. For the re-issued Government Stock, interest will be paid at the rate as determined on the date of original issue of Government Stock and will be paid on half yearly basis till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007. The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility. Ajit Prasad Press Release: 2025-2026/1137 Deputy General Manager (Communications)

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