Skip to main content

fema

RBI Auction Results for State Government Securities on 24 March 2026: What NRI Investors Should Know

The Reserve Bank of India released auction results for State Government Securities (SGS) held on 24 March 2026, covering bonds from Andhra Pradesh, Assam, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, and Karnataka. Cut off yields ranged from about 7.25% to 7.89% across various tenors from 5 years to 25 years, offering NRIs a window into the current state of sub sovereign debt pricing in India. Two securities from Assam and Jharkhand received no allotment despite bids being received, signaling selective investor appetite.

Source: RBI — Press Releases — Tue, 24 Mar 2026 17:05:00

Official source

What Happened on 24 March 2026?

The Reserve Bank of India conducted an auction of State Government Securities (also called State Development Loans or SDLs) on 24 March 2026. Multiple states participated, and the RBI published detailed results showing notified amounts, bids received, cut off yields, and final allotments.

If you hold NRE or NRO accounts and invest in Indian fixed income instruments, or if you track Indian bond markets to gauge the broader interest rate environment, these results matter to you.

Which States Issued Bonds and at What Yields?

Here is a summary of every security auctioned, organized by state:

Andhra Pradesh

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | AP SGS 2043 | 17 Years | 1,500 | 7.83 | 7.7952 | 1,500 | | AP SGS 2046 | 20 Years | 1,500 | 7.88 | 7.8368 | 1,500 | | AP SGS 2051 | 25 Years | 900 | 7.79 | 7.7900 | 900 |

Andhra Pradesh raised the full notified amount across all three tenors. The 20 year bond commanded the highest cut off yield at 7.88%, while the longest tenor (25 years) actually came in slightly lower at 7.79%.

Assam

| Security | Tenor | Notified Amount (₹ Crore) | Total Allotment (₹ Crore) | |---|---|---|---| | Assam SGS 2032 (Re issue of 7.22% issued on 18 Mar 2026) | Re issue | 500 | 0 |

Assam received only 1 competitive bid for ₹75 crore and 2 non competitive bids for ₹0.043 crore. No allotment was made. This suggests the market did not find the pricing attractive enough for this particular re issue.

Goa

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | Goa SGS 2038 | 12 Years | 100 | 7.76 | 7.7408 | 100 |

Goa raised its full notified amount of ₹100 crore. The small size of this issuance reflects Goa's relatively modest borrowing needs.

Gujarat

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | Gujarat SGS 2033 | 7 Years 6 Months | 1,000 | 7.44 | 7.4351 | 1,235 | | Gujarat SGS 2034 | 8 Years 6 Months | 1,000 | 7.45 | 7.4478 | 1,395 |

Gujarat's bonds attracted strong demand. The total allotment exceeded the notified amount in both cases (₹1,235 crore against ₹1,000 crore notified for the 2033 bond, and ₹1,395 crore against ₹1,000 crore for the 2034 bond). Gujarat's relatively lower yields (7.44% and 7.45%) reflect the market's confidence in the state's fiscal health.

Haryana

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | Haryana SGS 2032 | 6 Years | 1,000 | 7.42 | 7.3831 | 1,000 | | Haryana SGS 2039 | 13 Years | 1,000 | 7.76 | 7.7329 | 1,000 |

Haryana raised the full amount for both tenors. The 6 year bond at 7.42% was among the lowest yielding securities in this auction, indicating solid demand.

Himachal Pradesh

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | HP SGS 2041 | 15 Years | 565 | 7.89 | 7.8555 | 565 |

Himachal Pradesh's 15 year bond had the joint highest cut off yield in this auction at 7.89%, on par with Andhra Pradesh's 20 year paper. This higher yield likely reflects the market's assessment of the state's fiscal position.

Jammu and Kashmir

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | J&K SGS 2051 | 25 Years | 1,262 | 7.79 | 7.7900 | 1,262 |

Jammu and Kashmir raised the full notified amount for its 25 year bond. The cut off yield of 7.79% matched Andhra Pradesh's 25 year paper exactly.

Jharkhand

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | Jharkhand SGS 2032 (Re issue of 7.20% issued on 18 Mar 2026) | Re issue | 1,000 | — | — | 0 | | Jharkhand SGS 2034 (Re issue of 7.33% issued on 17 Sep 2025) | Re issue | 1,000 | 7.6003 | — | 1,000 | | Jharkhand SGS 2036 (Re issue of 7.49% issued on 18 Mar 2026) | Re issue | 1,000 | 7.6098 | — | 1,000 |

The Jharkhand SGS 2032 re issue received very limited interest (6 competitive bids for ₹245 crore and 1 non competitive bid for ₹0.003 crore) and ended with zero allotment, similar to the Assam re issue. The other two Jharkhand re issues were fully subscribed. The cut off prices for the 2034 and 2036 re issues were ₹98.33 and ₹99.17 respectively, meaning they were allotted at a discount to face value.

Karnataka

| Security | Tenor | Notified Amount (₹ Crore) | Cut off Yield (%) | Weighted Avg Yield (%) | Total Allotment (₹ Crore) | |---|---|---|---|---|---| | Karnataka SGS 2031 | 5 Years | 2,000 | 7.25 | — | 2,000 | | Karnataka SGS 2034 | 8 Years | 2,000 | 7.61 | — | 2,000 |

Karnataka was the largest borrower in this auction, raising ₹4,000 crore across two securities. The 5 year bond at 7.25% had the lowest cut off yield of the entire auction, reflecting Karnataka's strong credit standing among Indian states.

Key Takeaways for the Yield Curve

Yield range across tenors:

  • 5 year (Karnataka): 7.25%
  • 6 year (Haryana): 7.42%
  • 7.5 year (Gujarat): 7.44%
  • 8 year (Karnataka): 7.61%
  • 8.5 year (Gujarat): 7.45%
  • 12 year (Goa): 7.76%
  • 13 year (Haryana): 7.76%
  • 15 year (Himachal Pradesh): 7.89%
  • 17 year (Andhra Pradesh): 7.83%
  • 20 year (Andhra Pradesh): 7.88%
  • 25 year (Andhra Pradesh / J&K): 7.79%
The curve flattens and even inverts slightly at the very long end. The 25 year bonds from Andhra Pradesh and Jammu and Kashmir yielded 7.79%, which is lower than the 15 year Himachal Pradesh bond at 7.89% and the 20 year Andhra Pradesh bond at 7.88%. This could reflect expectations of future rate cuts or simply differences in state credit quality.

Why This Matters for NRI Investors

Direct Bond Investment

NRIs can invest in State Development Loans through the secondary market. These bonds offer yields that are typically 25 to 75 basis points above central government securities of similar maturity, providing a pickup for investors comfortable with sub sovereign credit risk. All state government securities carry an implicit sovereign backing since the RBI manages the auction and settlement process.

Impact on Debt Mutual Funds

If you invest in Indian debt mutual funds (which many NRIs do through their NRE or NRO linked demat accounts), SDL yields directly affect the returns of medium to long duration and gilt funds that hold state government paper. The yields in this auction suggest that the broader rate environment remains in the 7.25% to 7.90% band for state paper, which is useful context when evaluating fund performance.

Signal for Equity Markets

State borrowing costs feed into the overall cost of capital in the economy. When states borrow at higher yields, it can crowd out private sector borrowing. The fact that Gujarat and Karnataka borrowed at relatively low yields (7.25% to 7.45%) while Himachal Pradesh and Andhra Pradesh paid closer to 7.89% highlights the fiscal divergence among Indian states. Companies operating in fiscally stronger states may benefit from a more supportive local economic environment.

Failed Auctions Worth Noting

Two re issues (Assam SGS 2032 and Jharkhand SGS 2032) received zero allotment. When a state fails to raise money in an auction, it typically returns to the market in subsequent weeks, sometimes at higher yields. NRIs tracking state level fiscal health should note these outcomes.

Regulatory Reminders for NRIs

  • NRIs can invest in government securities (including SDLs) on a repatriation or non repatriation basis, subject to FEMA regulations. Check the latest RBI master directions on government securities for current eligibility and limits.
  • Interest income from SDLs is taxable in India. Tax treatment depends on whether you hold the bonds in an NRE or NRO account and your residential status under the Income Tax Act.
  • Always consult your bank or broker about the specific procedures for buying SDLs through the RBI Retail Direct platform or the secondary market.

Source

RBI Press Release dated 24 March 2026: Auction results of State Government Securities held on 24 March 2026.