State bond auction, Sept 29: bids of ₹85,341 crore for ₹22,200 crore
The full results show banks bid about 3.8 times what 12 states sought on September 29. Small investors got ₹785 crore through the non-competitive route.
Official title: State Government Securities - Full Auction Result · Press Release 2026-2027/1210
What happened
This is the detailed version of the September 29, 2026 state bond auction. States sought ₹22,200 crore. They received 1,565 competitive bids worth ₹85,341 crore, about 3.8 times the amount. RBI accepted 130 of them, worth ₹18,415 crore, and also gave ₹785 crore to 137 non-competitive bidders, small investors who accept the average rate. The total allotted was ₹19,200 crore.
Demand was strongest for the longer Bihar bond due 2051, which drew ₹6,105 crore of bids for ₹1,200 crore. Only about 20% of the bids at the cut-off rate were filled. Tamil Nadu accepted no money in its 10-year bond or its 7.62% 2041 re-issue.
For each bond the release lists the cut-off yield, the highest rate accepted, and the weighted average yield, the average across winning bids. Both mostly sit near 7.9%, with shorter bonds a little lower.
What it means for you
You do not need to act on this. It shows that individual investors do take part: 137 non-competitive bidders got ₹785 crore. 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
Heavy demand at about 7.9% shows banks and funds are willing to lend to states for the long term, which helps states fund their budgets.
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.