The Reserve Bank of India (RBI) has placed the gross issuance of State Government Securities (SGS) at Rs. 3.2 trillion for Q2 FY2027, 19.9% higher on a year-on-year (YoY) basis, as per the auction calendar for 24 state governments and three Union Territories (UTs) released on June 25, 2026. After factoring in redemptions of Rs. 891 billion, the net SGS issuance is assessed at Rs. 2.3 trillion in Q2 FY2027, 16.5% higher than the actual net issuance of Rs. 2.0 trillion in Q2 FY2026. The incremental gross borrowing of Rs. 530 billion is led by Uttar Pradesh (UP), Tamil Nadu (TN) and West Bengal (WB), which together account for nearly 90% of the increase.

With 10 more states/UTs (Delhi, Himachal Pradesh or HP, Jharkhand, Manipur, Meghalaya, Odisha, Punjab, Sikkim, Uttarakhand and WB) consenting to adopt the Benchmark Issuance Strategy (BIS), the total tally of BIS states has widened to 19 in Q2 FY2027 from the nine states in Q1 FY2027. Together, these states plan to raise Rs. 2.4 trillion, or nearly three-fourths of the total indicated issuance for the quarter. The borrowing trend of the initial nine BIS states being in line with the indicated amount in Q1 FY2027 suggests that the 10 states/UTs that have just adopted the BIS would also likely stick to the borrowings indicated in the Q2 FY2027 auction calendar. Moreover, among the states that have not yet adopted BIS, TN’s actual SGS issuance in Q2 FY2027 could be close to the indicated Rs. 390 billion to make up for its large under-borrowing in Q1 FY2027 (57% of the indicated) and its past trend of borrowing nearly in line with the indicated levels.