States Raise ₹250.67 Billion Via Bonds, Fall Short Of Target Amid Mixed Cut-Offs

India’s state government securities (SGS) auction held on November 25, 2025, saw 14 states collectively raise ₹250.67 billion, falling short of the ₹265.50 billion target. The Reserve Bank of India facilitated the auction, which included both fresh issuances and re-issues across tenors ranging from 4 to 30 years.  

Key highlights from the announcement include  

• Chhattisgarh accepted ₹5.00 billion in the 10-year security, below its notified amount.  
• Punjab accepted ₹202 crore in the 8-year security, also partially subscribed.  
• Tamil Nadu’s re-issued SDLs for 2035 and 2036 saw implicit yields of 7.1398% and 7.1997%, respectively.  
• Rajasthan’s 2035 SDL re-issue yielded 7.2101%, while Chhattisgarh’s 2040 SDL re-issue stood at 7.4500%.  
• Telangana’s cut-off yields ranged from 7.45% for the 23-year bond to 7.47% for the 28-year bond.  
• Gujarat’s 7-year and 8-year bonds were cut off at 6.00% and 7.00%, respectively.  
• West Bengal’s 10-year bond cut-off was 7.48%, while Bihar’s 20-year bond was priced at 7.46%.  
• Sikkim, Uttarakhand, Manipur, Kerala, and Jammu & Kashmir also participated, with yields between 7.21% and 7.30%.  

The auction results reflect a cautious approach by states and investors, with selective acceptance and yield sensitivity shaping outcomes. As fiscal pressures mount and monetary policy remains in focus, state borrowing strategies are increasingly calibrated to market appetite and cost efficiency.  

Sources: Reserve Bank of India, ANI News, NSE India