12 states borrow ₹19,200 crore at about 7.7% to 8% (Sept 29)
On September 29, twelve states raised ₹19,200 crore against ₹22,200 crore sought. Tamil Nadu turned down ₹3,000 crore. Rates were mostly 7.7% to 8.0%.
Official title: Result of Yield/Price Based Auction of State Government Securities · Press Release 2026-2027/1209
What happened
At the September 29, 2026 auction, 12 states put up bonds for sale, seeking ₹22,200 crore in total. They were Assam, Bihar, Chhattisgarh, Haryana, Jharkhand, Kerala, Madhya Pradesh, Sikkim, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal. RBI accepted ₹19,200 crore. The gap is Tamil Nadu, which accepted nothing in its 10-year bond and in a re-issue of its 7.62% 2041 bond, ₹3,000 crore in all. The release does not say why.
Most cut-off yields fell between 7.70% and 8.00%. That is what the states will pay each year to borrow. Examples: West Bengal paid 7.70% on a bond due 2031 and 7.95% on one due 2052; Assam 7.97% for a bond due 2046; Kerala 7.85% for one due 2033. Sikkim paid 7.55% for 4 years and 7.98% for 16 years. Uttar Pradesh also raised ₹1,000 crore for 25 years at 7.95%.
What it means for you
There is no direct effect on you. States borrow to fund roads, schools and other spending, and pay interest from public money. If you want to lend to the government yourself, individuals can bid in these auctions through the RBI Retail Direct portal.
What it means for businesses
State borrowing at close to 8% a year is a reference point for banks and companies. Banks count these bonds toward the government bonds they must hold.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.