Summary of this article
Six states to auction Rs 8,450 crore in government bonds.
Auctions via RBI’s e-Kuber platform with varied tenures and yields.
Bonds eligible for SLR and repo, attracting institutional and retail investors.
The Reserve Bank of India (RBI) has announced that six states will auction state government securities worth a total of Rs 8,450 crore on August 12, 2025. The participating states are Bihar, Goa, Haryana, Jammu and Kashmir, Maharashtra, and Telangana. These auctions will be conducted through RBI’s Core Banking Solution (E-Kuber) system, allowing for both competitive and non-competitive bidding.
Details Of The Auction
The auction involves a mix of new issuances and re-issues of existing state government bonds. Bihar will raise Rs 2,000 crore through a 30-year yield-based auction. Goa plans to raise Rs 100 crore with an 11-year tenure bond. Haryana will re-issue its 8.62 per cent State Development Loan (SDL) maturing in 2028 to raise Rs 1,000 crore.
Jammu and Kashmir will auction Rs 350 crore worth of 15-year bonds through a yield-based format. Maharashtra will be the most active participant, offering multiple re-issues:
Rs 1,000 crore of 7.14 per cent securities maturing in 2045
Rs 1,000 crore of 7.14 per cent securities maturing in 2046
Rs 1,000 crore of 7.17 per cent securities maturing in 2054
Rs 1,000 crore of 7.16 per cent securities maturing in 2055
Telangana will issue Rs 1,000 crore worth of bonds with a 35-year tenure.
Bidding Timelines And Participation
RBI has set specific timings for bid submission on August 12. Competitive bids can be placed between 10:30 AM and 11:30 AM, while non-competitive bids must be submitted between 10:30 AM and 11:00 AM. Under the non-competitive bidding scheme, up to 10 per cent of the notified amount for each security will be allotted to eligible individuals and institutions, with a maximum of 1 per cent per bid. Retail investors can also participate through the RBI Retail Direct portal.
Investors will need to express their expected yield or price up to two decimal points. Multiple bids are allowed, but the total amount from a single bidder cannot exceed the notified amount for each state. The minimum investment amount is Rs 10,000, and further investments must be in multiples of Rs 10,000.
Settlement, Interest And Eligibility
The results of the auction will be announced on the same day, August 12. Successful bidders must make payments during banking hours on August 13 at Mumbai or at the respective regional RBI offices.
For new issuances, interest will be paid every six months on February 13 and August 13 until maturity. For re-issued securities, the interest rate will be the same as at the time of the original issue and will also be paid on a half-yearly basis.
Investments under these state government securities will be eligible to be included towards banks' Statutory Liquidity Ratio (SLR) requirements under the Banking Regulation Act, 1949. The bonds will also be eligible for the ready forward (repo) facility, thus being more appealing to institutional investors.
The auction is likely to attract participation from a variety of investors, ranging from large funds to retail participants, due to the wide range in tenures, yields and the track record of state-backed securities.
