States Accept ₹26,590 Crore in RBI’s September 1 SGS Auction; Uttarakhand Rejects ₹300 Crore Re-Issue

The Reserve Bank of India has published the result of the September 1, 2026 yield/price-based auction of State Government Securities, with states seeking an aggregate ₹27,000 crore and accepting ₹26,590.03 crore. The outcome is relevant for treasury teams, fixed-income market participants and finance professionals because it provides a same-day read on state borrowing across multiple maturities and the yields accepted in the primary market.

₹26,590.03 crore accepted against ₹27,000 crore notified

According to RBI Press Release 2026-2027/1012, the auction covered securities issued by Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Kerala, Madhya Pradesh, Manipur, Odisha, Sikkim, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal. The aggregate accepted amount was about 98.5% of the notified borrowing, leaving roughly ₹409.97 crore unaccepted.

The shortfall was concentrated in two places. Chhattisgarh accepted ₹390.03 crore against a notified ₹500 crore in the re-issue of its 7.64% SGS 2042. Uttarakhand did not accept any amount against the notified ₹300 crore re-issue of its 7.64% Uttarakhand SGS 2038. RBI separately flagged both outcomes in the release.

Cut-off yields ranged from about 7.17% to 7.83%

Among the accepted securities listed by RBI, cut-off yields ranged from 7.1692% for the re-issue of 6.94% Odisha SGS 2030 to 7.8302% for the re-issue of 7.58% Sikkim SGS 2039. Several longer-tenor or re-issued securities cleared near the upper end of the 7.7%-plus range.

- Assam accepted ₹1,000 crore in the re-issue of 7.62% Assam SGS 2046 at a cut-off yield of 7.7585%.

- Bihar accepted ₹800 crore in the re-issue of 7.42% Bihar SGS 2035 at 7.6494%, and another ₹1,200 crore in a 25-year security at 7.76%.

- Madhya Pradesh accepted ₹1,600 crore in the re-issue of 7.61% Madhya Pradesh SGS 2044 at 7.7990%, plus ₹2,000 crore in a 30-year security at 7.75%.

- Tamil Nadu accepted three tranches totalling ₹5,000 crore, including re-issues maturing in 2036, 2041 and 2051.

- West Bengal accepted three tranches totalling ₹4,700 crore, including re-issues maturing in 2031, 2044 and 2052.

Large state-wise tranches in the auction

Kerala accepted ₹800 crore in the re-issue of 7.30% Kerala SGS 2033 at a cut-off yield of 7.4391% and ₹1,000 crore in the re-issue of 7.56% Kerala SGS 2039 at 7.7495%. Odisha accepted ₹1,000 crore in the 2030 re-issue at 7.1692% and another ₹1,000 crore in the re-issue of 7.64% Odisha SGS 2040 at 7.7792%.

Telangana accepted three tranches totalling ₹2,000 crore: ₹500 crore in its 2039 re-issue at 7.7356%, ₹500 crore in its 2044 re-issue at 7.7996% and ₹1,000 crore in its 2049 re-issue at 7.7378%. Uttar Pradesh also accepted three tranches totalling ₹2,000 crore, including a 2032 re-issue at 7.3505%, a 2042 re-issue at 7.7555% and a 2051 re-issue at 7.7690%.

What finance teams should take from the result

The auction does not by itself establish a broader trend in borrowing costs, but it gives finance and treasury professionals a precise primary-market snapshot across states and maturities. The accepted yields can be compared with recent state loan auctions, Government of India securities and internal treasury benchmarks when evaluating fixed-income portfolios, cost-of-funds assumptions or mark-to-market exposures.

The result also illustrates why notified borrowing should not automatically be treated as borrowing actually raised. In this auction, the notified total was ₹27,000 crore, while the accepted amount was ₹26,590.03 crore because one Chhattisgarh tranche was partially accepted and the Uttarakhand tranche was not accepted. For analysts monitoring state financing calendars, the auction result is therefore the better source for the amount actually raised on the day.

RBI’s official auction result contains the state-wise accepted amounts, cut-off prices or yields and tenors for every security in the September 1 auction.

For treasury, banking and fixed-income professionals, the key number is that states accepted ₹26,590.03 crore against ₹27,000 crore notified, while accepted yields across the listed securities spanned roughly 7.17% to 7.83%. The detailed state-wise table should be used for any security-specific analysis rather than relying only on aggregate borrowing figures.

Key takeaway

Same-day official RBI auction result with exact state-wise borrowing and yield data has strong freshness and treasury relevance.