RBI Secures Full Subscription in Government Securities Auction: A Sign of Economic Stability

The Reserve Bank of India (RBI) reported success in the underwriting auction for government securities conducted on August 22, 2025.

Primary Dealers efficiently managed to underwrite the entire notified amount for both the 5.91% Government Security maturing in 2028 and the 6.33% bond extending to 2035. Specifically, Rs. 6,000 crore was secured for the 2028 security, while Rs. 30,000 crore was underwritten for the 2035 security. The auction confirmed robust interest from institutional investors.

In particular, the 2028 bond saw a minimum underwriting commitment of Rs. 3,003 crore, with additional competitive underwriting of Rs. 2,997 crore accepted, at a commission rate set at 0.25 paise per Rs. 100. Conversely, for the 2035 bond, the minimum commitment was set at Rs. 15,015 crore, with the additional amount accepted at Rs. 14,985 crore and a commission cut-off of 0.79 paise per Rs. 100. The auctions were part of the government's strategy to re-issue securities totaling Rs. 36,000 crore, facilitated by the RBI's E-Kuber system.

This auction aligns with the government's broader borrowing program designed to finance various needs, mirroring confidence in the securities market.

(With inputs from agencies.)