India's States Eye Rs 44,550 Crore in Security Auction

The Reserve Bank of India will auction State Government Securities worth Rs 44,550 crore on February 24. Sixteen states, including Andhra Pradesh and Maharashtra, will participate. The securities, ranging from three to 28 years in maturity, will aid states' fiscal strategies. The results are due the same day.

The Reserve Bank of India (RBI) has announced an auction of State Government Securities, totaling Rs 44,550 crore, scheduled for February 24. An official notification revealed that 16 states, such as Andhra Pradesh, Bihar, and Maharashtra, will engage in this process combining fresh and re-issued securities.

Diverse maturities from three to 28 years highlight multiple borrowing strategies tailored to states' fiscal needs. States like Chhattisgarh and West Bengal plan re-issuance of existing stocks with varying interest rates. Innovative borrowing, through green-shoe options in states such as Gujarat, underscores the auction's flexibility.

Bidding will occur on the RBI's E-Kuber platform. Participants have an hour to submit competitive bids, while non-competitive bids have a 30-minute window. Results are anticipated on the same day, and transactions are expected by February 25, 2026, abiding by structured regulations and interest rates.

(With inputs from agencies.)