Executive Summary:
This press release from the Reserve Bank of India announces the results of the auction of State Government Securities held on August 12, 2025. It details the notified amounts, tenors, bids received, cutoff yields/prices, and allotment amounts for various states' securities. The total allotment amount across all states was ₹8450 crore.
Key Points / Main Content:
* **Auction Overview:**
* Auction held on August 12, 2025, for State Government Securities (SGS).
* Total notified amount for the auction: ₹8450 crore.
* **State-Specific Results:**
* **Jammu & Kashmir SGS 2055:**
* Notified Amount: ₹2000 crore.
* Tenor: 30 Years.
* Cutoff Yield: 7.43%.
* **Bihar SGS 2036:**
* Notified Amount: ₹100 crore.
* Tenor: 11 Years.
* Cutoff Yield: 7.12%.
* **Goa SGS 2028:**
* Notified Amount: ₹1000 crore.
* Tenor: 15 Years.
* Cutoff Yield: 6.4377%.
* **Haryana SGS 2040:**
* Notified Amount: ₹350 crore.
* Reissue of 8.62 HARYANA SDL 2028 issued on 03SEP 2018.
* Cutoff Yield: 7.35%.
* **Maharashtra SGS (Various):**
* SGS 2045, 2046, 2054, 2055 each with a notified amount of ₹1000 crore.
* Reissues of existing securities with tenors to 2045, 2046, 2054 and 2055.
* Cutoff Yields: Ranging from 7.3170% to 7.4173%.
* **Telangana SGS 2060:**
* Notified Amount: ₹1000 crore.
* Tenor: 35 Years.
* Cutoff Yield: 7.33%.
* **Bidding Information:**
* Details provided for competitive and non-competitive bids received and accepted for each state's securities, including the number of bids, amounts, cutoff prices, and partial allotment percentages.
* Weighted average yields are specified for each state's securities.
Impact Analysis:
* **State Governments:**
* Impact: Affected by the auction results as it determines the yield and amount of funds raised through the issuance of State Government Securities.
* Action Required: Manage finances based on the funds raised and the corresponding interest obligations.
* **RBI:**
* Impact: Oversees and manages the auction process for State Government Securities.
* Action Required: Continue to monitor market conditions and manage future auctions effectively.
* **Investors (Banks, Financial Institutions, etc.):**
* Impact: Directly impacted by the cutoff yields and prices, and the allotment amounts received in the auction.
* Action Required: Adjust investment strategies based on the auction results and market conditions.
Key Entities Referenced
Reserve Bank of India: Central bank of India, responsible for monetary policy and regulation of the banking system.
State Government Securities: Debt instruments issued by state governments to raise funds from the market.
Haryana SDL 2028: State Development Loan issued by Haryana with maturity in 2028.
Jammu and Kashmir: A region and former state in northern India.
Bihar: A state in eastern India.
Goa: A state in western India.
Haryana: A state in northern India.
Maharashtra: A state in western India.
Telangana: A state in southern India.
Ajit Prasad: Deputy General Manager, Communications at Reserve Bank of India.