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RBI Announces State Government Securities Auction Results for March 24, 2026: 21 States Raise Over ₹54,834 Crore

The Reserve Bank of India released the results of the State Development Loan (SDL) auction held on March 24, 2026, where 21 states and union territories collectively raised approximately ₹54,834 crore against a planned ₹57,408 crore. Yields ranged from 7.24% to 7.89% across tenors spanning 5 to 25 years, with several states issuing fresh securities and others opting for reissues of existing bonds. NRIs who invest in Indian debt markets should note these yield benchmarks as they influence broader fixed income pricing across the economy.

Source: RBI — Press Releases — Tue, 24 Mar 2026 15:40:00

Official source

What Happened

On March 24, 2026, the Reserve Bank of India conducted an auction of State Government Securities (commonly called State Development Loans or SDLs) on behalf of 21 states and union territories. The total amount offered stood at ₹57,408 crore, and the total amount accepted came in at approximately ₹54,834.40 crore. Some states accepted the full amount they planned to raise, a few accepted more than originally planned, and others accepted partial amounts or rejected bids entirely.

This press release (numbered 2025‑2026/2317) was issued by Ajit Prasad, Deputy General Manager (Communications) at the RBI.

Why This Matters for NRIs

State Development Loans form a massive segment of India's bond market. They sit just below central government securities (G‑Secs) in the sovereign credit hierarchy and carry an implicit state government guarantee. The yields set in these auctions serve as important benchmarks that ripple through the entire fixed income ecosystem, including corporate bonds, tax free bonds, and debt mutual funds that many NRIs hold in their Indian portfolios.

If you invest in Indian debt mutual funds, hold bonds directly through your NRO or NRE linked demat accounts, or track interest rate trends to time your equity and real estate decisions, these auction results give you a real time pulse on where state level borrowing costs stand.

State by State Auction Results

Andhra Pradesh

  • ₹1,500 crore accepted at 7.83% yield for 17 years
  • ₹1,500 crore accepted at 7.88% yield for 20 years
  • ₹900 crore accepted at 7.79% yield for 25 years

Assam

  • Offered ₹500 crore via reissue of 7.22% Assam SGS 2032 (originally issued on March 18, 2026)
  • Assam did not accept any amount in this reissue

Goa

  • ₹100 crore accepted at 7.76% yield for 12 years

Gujarat

  • ₹1,235 crore accepted at 7.44% yield for 7 years and 6 months (accepted an additional ₹235 crore beyond the originally offered ₹1,000 crore)
  • ₹1,395 crore accepted at 7.45% yield for 8 years and 6 months (accepted an additional ₹395 crore beyond the originally offered ₹1,000 crore)

Haryana

  • ₹1,000 crore accepted at 7.42% yield for 6 years
  • ₹1,000 crore accepted at 7.76% yield for 13 years

Himachal Pradesh

  • ₹565 crore accepted at 7.89% yield for 15 years

Jammu and Kashmir

  • ₹1,262 crore accepted at 7.79% yield for 25 years

Jharkhand

  • Offered ₹1,000 crore via reissue of 7.20% Jharkhand SGS 2032 (originally issued on March 18, 2026) but did not accept any amount
  • ₹1,000 crore accepted at a cut off price of ₹98.33 (yield 7.6003%) via reissue of 7.33% Jharkhand SGS 2034 (originally issued on September 17, 2025)
  • ₹1,000 crore accepted at a cut off price of ₹99.17 (yield 7.6098%) via reissue of 7.49% Jharkhand SGS 2036 (originally issued on March 18, 2026)

Karnataka

  • ₹1,401.318 crore accepted at 7.25% yield for 5 years (partial acceptance against ₹2,000 crore offered)
  • ₹2,000 crore accepted at 7.61% yield for 8 years
  • ₹2,000 crore accepted at 7.62% yield for 10 years and 6 months
  • ₹2,000 crore accepted at 7.68% yield for 11 years and 6 months
  • ₹2,000 crore accepted at 7.76% yield for 15 years

Kerala

  • Offered ₹1,500 crore for 5 years but did not accept any amount
  • ₹1,200 crore accepted at 7.68% yield for 10 years
  • ₹1,000 crore accepted at 7.88% yield for 20 years

Maharashtra

  • ₹1,500 crore accepted at 7.57% yield for 10 years (accepted an additional ₹500 crore beyond the originally offered ₹1,000 crore)
  • ₹530 crore accepted at a cut off price of ₹98.37 (yield 7.8187%) via reissue of 7.66% Maharashtra SGS 2047 (originally issued on March 04, 2026)
  • ₹1,500 crore accepted at a cut off price of ₹98.63 (yield 7.7830%) via reissue of 7.66% Maharashtra SGS 2052 (originally issued on March 04, 2026), with an additional ₹500 crore accepted beyond the originally offered ₹1,000 crore

Manipur

  • ₹350 crore accepted at 7.88% yield for 13 years

Meghalaya

  • ₹253 crore accepted at 7.74% yield for 9 years

Nagaland

  • ₹250.013 crore accepted at 7.38% yield for 5 years (partial acceptance against ₹600 crore offered)

Puducherry

  • ₹150 crore accepted at 7.70% yield for 9 years

Punjab

  • ₹1,598 crore accepted at 7.80% yield for 10 years

Rajasthan

  • ₹1,000 crore accepted at 7.33% yield for 5 years
  • ₹2,000 crore accepted at 7.65% yield for 10 years
  • ₹2,000 crore accepted at a cut off price of ₹98.82 (yield 7.7890%) via reissue of 7.65% Rajasthan SGS 2040 (originally issued on January 07, 2026)

Sikkim

  • ₹400 crore accepted at 7.87% yield for 10 years

Tamil Nadu

  • ₹1,000 crore accepted at 7.24% yield for 5 years
  • ₹745.071 crore accepted at a cut off price of ₹99.00 (yield 7.4659%) via reissue of 7.28% Tamil Nadu SGS 2033 (originally issued on March 18, 2026) — partial acceptance
  • ₹1,000 crore accepted at 7.58% yield for 9 years
  • ₹2,000 crore accepted at 7.55% yield for 10 years
  • ₹2,000 crore accepted at a cut off price of ₹98.74 (yield 7.7381%) via reissue of 7.63% Tamil Nadu SGS 2056 (originally issued on March 04, 2026)

Uttar Pradesh

  • ₹1,000 crore accepted at a cut off price of ₹98.69 (yield 7.7394%) via reissue of 7.57% Uttar Pradesh SGS 2038 (originally issued on March 18, 2026)
  • ₹750 crore accepted at a cut off price of ₹97.81 (yield 7.7701%) via reissue of 7.51% Uttar Pradesh SGS 2039 (originally issued on December 17, 2025)
  • ₹750 crore accepted at a cut off price of ₹98.28 (yield 7.7793%) via reissue of 7.59% Uttar Pradesh SGS 2041 (originally issued on December 24, 2025)
  • ₹1,500 crore accepted at 7.88% yield for 20 years
  • ₹1,500 crore accepted at 7.79% yield for 25 years

Uttarakhand

  • ₹1,000 crore accepted at 7.63% yield for 9 years
  • ₹1,000 crore accepted at 7.88% yield for 20 years

West Bengal

  • ₹1,500 crore accepted at 7.88% yield for 18 years
  • ₹2,000 crore accepted at 7.84% yield for 21 years
  • ₹1,500 crore accepted at 7.79% yield for 25 years

Key Observations and Yield Trends

Yield Range

Across all states and tenors in this auction, yields ranged from a low of 7.24% (Tamil Nadu, 5 year) to a high of 7.89% (Himachal Pradesh, 15 year). Fiscally stronger states like Karnataka, Tamil Nadu, and Gujarat consistently attracted lower yields, reflecting the market's confidence in their repayment capacity.

States That Rejected or Partially Accepted Bids

Several states exercised discipline by not accepting bids they found too expensive:
  • Assam rejected all bids on its 7.22% SGS 2032 reissue
  • Jharkhand rejected all bids on its 7.20% SGS 2032 reissue
  • Kerala rejected all bids on the 5 year security
  • Karnataka accepted only ₹1,401.318 crore out of ₹2,000 crore offered for the 5 year tenor
  • Nagaland accepted only ₹250.013 crore out of ₹600 crore offered
  • Tamil Nadu accepted only ₹745.071 crore on its SGS 2033 reissue
This selective acceptance signals that states are watching borrowing costs carefully and prefer to wait for better market conditions rather than borrow at yields they consider too high.

States That Accepted More Than Planned

  • Gujarat raised an extra ₹630 crore across its two tranches
  • Maharashtra raised an extra ₹1,000 crore across its 10 year security and the SGS 2052 reissue
This suggests these states found market conditions favorable enough to front load their borrowing.

Investment Angle for NRIs

Direct SDL Investment

NRIs can invest in SDLs through their NRO demat accounts. These securities trade on the NDS‑OM (Negotiated Dealing System Order Matching) platform and on stock exchanges. They offer yields that typically run 25 to 75 basis points above central government securities of similar maturity, making them attractive for those seeking slightly higher returns with near sovereign credit quality.

Impact on Debt Mutual Funds

If you hold Indian debt mutual funds (medium duration, long duration, gilt, or dynamic bond funds), SDL yields directly affect the net asset values of these funds. A large SDL supply week like this one can put upward pressure on yields across the curve, which temporarily depresses bond prices. Conversely, when supply gets absorbed smoothly (as largely happened here), it signals healthy demand and can support bond prices going forward.

Signal for Equity Markets

Rising state borrowing costs can crowd out private sector borrowing and push up lending rates, which eventually affects corporate profitability. The yields in this auction suggest that state level borrowing costs remain in the 7.24% to 7.89% band. NRIs tracking rate sensitive sectors like banking, real estate, NBFCs, and auto should monitor whether these yields trend higher in subsequent auctions.

Tax Considerations

Interest income from SDLs held by NRIs in NRO accounts attracts tax at applicable slab rates. TDS applies as per the Income Tax Act. Capital gains on sale before maturity follow the standard debt instrument taxation rules applicable for the relevant assessment year. Always check the latest notification for current tax rates and holding period requirements.

Source Reference

RBI Press Release 2025‑2026/2317, dated March 24, 2026, issued by Ajit Prasad, Deputy General Manager (Communications), Reserve Bank of India.