Government Securities – RBI Accepts Full Rs 28,000 Crore Bond Auction Without Devolvement
Government Securities – The Reserve Bank of India (RBI) successfully concluded the government’s auction of dated securities worth Rs 28,000 crore on Friday, with the entire notified amount receiving bids and being accepted. The central bank confirmed that there was no devolvement on Primary Dealers, indicating that investor demand was sufficient to absorb the complete issuance without requiring dealers to take up any unsold portion.
Full Subscription Across Both Securities
According to the auction outcome released by the RBI, the newly issued GS 2041 security raised its entire notified amount of Rs 17,000 crore. Likewise, the 7.43% GS 2076 security attracted full subscriptions for the announced Rs 11,000 crore. In both cases, the RBI stated that devolvement on Primary Dealers remained “NIL”, reflecting a smooth completion of the borrowing programme.
The successful outcome follows the central bank’s earlier announcement regarding underwriting arrangements and commission rates applicable to the auction.
Auction Yields and Pricing Details
The RBI said the cut-off yield for the New GS 2041 bond was fixed at 7.06 per cent. Meanwhile, the 7.43% GS 2076 security was accepted at a cut-off price of Rs 97.55. Based on this price, the bond carried an implicit yield of 7.6212 per cent.
These figures determine the pricing at which successful bids were accepted and provide an indication of market demand for government securities across different maturities.
Underwriting Commission Finalised Before Auction
Prior to announcing the auction results, the RBI had issued a separate statement detailing the outcome of the Additional Competitive Underwriting (ACU) auction conducted on July 24, 2026. The central bank fixed the underwriting commission at 0.74 paise per Rs 100 for the New GS 2041 security and 0.98 paise per Rs 100 for the 7.43% GS 2076 security.
The underwriting process is designed to ensure smooth participation in government securities auctions by assigning commitments to Primary Dealers before the main auction takes place.
Distribution of Underwriting Commitments
The RBI also shared a breakdown of the underwriting commitments for both securities. For the New GS 2041 bond, the Minimum Underwriting Commitment (MUC) was set at Rs 8,505 crore, while an additional Rs 8,495 crore was covered through the Additional Competitive Underwriting mechanism, matching the total notified amount of Rs 17,000 crore.
For the 7.43% GS 2076 bond, the Minimum Underwriting Commitment stood at Rs 5,502 crore. The remaining Rs 5,498 crore was accepted through the Additional Competitive Underwriting auction, bringing total underwriting coverage to the full notified amount of Rs 11,000 crore.
RBI Issues Separate Official Releases
The central bank communicated both the underwriting commission details and the final auction results through separate press releases issued by its Department of Communication. Together, the announcements confirmed that the government’s scheduled borrowing through these two dated securities was completed as planned, with full subscription achieved and no requirement for Primary Dealers to absorb any unsold securities.