States raise ₹30,005 crore at about 8% to 8.2% yields on October 13
Thirteen states got ₹30,005 crore of the ₹31,200 crore they sought. Most will pay between 8.0% and 8.2% a year.
Official title: Result of Yield/Price Based Auction of State Government Securities · Press Release 2026-2027/1319
What happened
The result of the October 13, 2026 state bond auction: states raised ₹30,005 crore out of ₹31,200 crore. Most will pay yields between about 8.0% and 8.2% a year. Tamil Nadu raised ₹7,000 crore: 8.14% for 20 years, 8.21% for 25 years and 8.18% for 30 years.
Some pay less: Gujarat 7.96% for nine years, Keralam 7.92% for six years and Odisha 7.85% on a bond due in 2032. West Bengal pays 8.15% for 18 years and 8.16% for 26 years.
Two states raised less than asked. Assam took ₹805 crore of ₹1,000 crore at 8.10% for 11 years, and Gujarat accepted nothing in its 12-year bond. The release gives no reason.
What it means for you
State bonds pay about 8% a year, higher than most savings accounts, and can be bought through RBI Retail Direct. For most people there is no direct effect.
What it means for businesses
States are paying more than the central government, which keeps state borrowing costs above those of the Centre.
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.