The Reserve Bank of India has released the indicative calendar of market borrowings by state governments and union territories for the quarter April to June 2026, with total borrowings expected to reach ₹2,54,509 crore across the three-month period. The calendar, published on April 2, 2026, as Press Release 2026-2027/17, also marks the launch of a significant new policy initiative as the RBI introduces the Benchmark Issuance Strategy on a pilot basis for nine states starting financial year 2026-27.
The Benchmark Issuance Strategy — What Is New This Quarter
The most significant policy development embedded in this calendar is the introduction of the Benchmark Issuance Strategy for state government securities. The RBI has been sensitising states about adopting this structured approach to their market borrowings, with the objective of enhancing transparency and providing greater clarity to investors who buy state government bonds.
The nine states included in the pilot for financial year 2026-27 are Andhra Pradesh, Bihar, Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, and Uttar Pradesh. Under the BIS, these states will issue securities in specific benchmark tenor buckets as per a pre-announced calendar, rather than the more flexible issuance approach previously followed. The pre-announced calendar covering these nine states for April to June 2026 forms Annex 1 of the RBI’s press release, covering ₹1,53,900 crore of the total quarter’s borrowings. The remaining states and union territories, covered under Annex 2, account for ₹1,00,609 crore.
The Total Borrowing Picture
The combined state government and union territory market borrowings for April to June 2026 are expected to total ₹2,54,509 crore. This figure represents the aggregate of the nine BIS pilot states at ₹1,53,900 crore and the remaining states and UTs at ₹1,00,609 crore.
State government securities, also known as state development loans or SDLs, are bonds issued by state governments to finance their fiscal deficits. They are guaranteed by the respective state governments and are among the most important instruments in India’s bond market, purchased by banks, insurance companies, provident funds, and other institutional investors. The RBI acts as the cash and debt manager for state governments, conducting the auctions and managing the borrowing programme on their behalf.
The Auction Schedule — April to June 2026
The BIS pilot states follow a fortnightly auction cycle. The nine states borrowing under the BIS will conduct auctions on the following dates in April: April 7 for ₹15,500 crore, April 13 for ₹12,700 crore, April 21 for ₹15,600 crore, and April 28 for ₹12,500 crore. Settlements occur one day after each auction date.
April 7 sees Andhra Pradesh borrowing ₹4,400 crore across 11-25 year tenors, Maharashtra ₹3,600 crore across 2-25 year tenors, Rajasthan ₹3,600 crore across 2-25 year buckets, and Telangana ₹3,900 crore in 16-25 year buckets.
April 13 includes Bihar raising ₹1,600 crore in 21-25 year paper, Chhattisgarh ₹1,000 crore, Kerala ₹2,800 crore, Madhya Pradesh ₹1,800 crore, and Uttar Pradesh ₹5,500 crore across multiple tenor buckets.
For the remaining states under Annex 2, April auctions run on April 7 for ₹2,659 crore covering Himachal Pradesh, Meghalaya, and Punjab, April 13 for ₹1,250 crore covering Karnataka and Meghalaya, April 21 for ₹7,900 crore covering Goa, Gujarat, Manipur, Punjab, Tamil Nadu, and West Bengal, and April 28 for ₹13,000 crore covering Assam, Goa, Gujarat, Karnataka, Odisha, Punjab, Tamil Nadu, Uttarakhand, and West Bengal.
The Tenor Bucket Structure Under BIS
The BIS pilot introduces structured tenor buckets rather than the free choice of maturity that states previously had. The buckets used are 2-5 years, 6-10 years, 11-15 years, 16-20 years, 21-25 years, and above 25 years. This bucket structure allows investors to build positions across the yield curve in predictable maturity segments, improving secondary market liquidity and price discovery for state government securities.
The dominance of longer-dated tenors in the calendar, with significant issuance in the 11-15, 16-20, 21-25, and above-25 year buckets, reflects the long-term infrastructure and developmental financing needs that state borrowings typically fund.
Largest State Borrowers This Quarter
Among the BIS pilot states, Uttar Pradesh, Maharashtra, Andhra Pradesh, and Rajasthan are among the largest borrowers based on the Annex 1 calendar. Among the non-BIS states in Annex 2, Tamil Nadu is the largest single borrower with ₹3,000 crore in multiple auction dates, followed by West Bengal and Gujarat with substantial recurring issuances through the quarter.
Important Caveats
The RBI has emphasised that the calendar is indicative rather than final. The actual amount of borrowings and the details of participating states will be communicated through press releases two to three days before each actual auction. The RBI may modify auction dates and amounts in consultation with the respective state governments and union territories, taking into account prevailing market conditions and other relevant factors.
The total ₹2,54,509 crore figure for the quarter represents a substantial supply of bonds into India’s debt market at a moment when the RBI is also managing the rupee’s record-low position, elevated crude oil prices from the Iran war, and the broader macroeconomic pressures described throughout today’s coverage. The timing and pace of state government bond issuances will be an important variable in how Indian bond markets navigate the first quarter of financial year 2026-27.
This article is based on RBI Press Release 2026-2027/17 dated April 2, 2026, titled Indicative Calendar of Market Borrowings by State Governments and Union Territories for the Quarter April to June 2026. All figures and auction dates are indicative and subject to modification by the RBI. This article is for informational purposes only and does not constitute financial or investment advice.