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Informist, Friday, Jul. 25, 2025

--RBI: Govt to buy back INR 300 bln worth of 3 gilts on Jul 31 

--RBI: Govt to buy back 7.27%, 2026 gilt at auction Thu 

--RBI: Govt to buy back 5.63%, 2026 gilt at auction Thu 

--RBI: Govt to buy back 6.99%, 2026 gilt at auction Thu 

MUMBAI – The government will buy back three gilts worth INR 300 billion on Thursday, the Reserve Bank of India said in a press release Friday. The buyback auction of the three gilts, all maturing in 2026-27 (Apr-Mar), will be held at 1030-1130 IST.

The gilts up for buyback are the 7.27%, 2026 bond; the 5.63%, 2026 bond and the 6.99%, 2026 bond. There is no notified amount for each of the individual securities up for buyback.

There were no allocations made for buybacks in the Budget tabled in February. This will be the fourth buyback auction in the current financial year. At the buyback auction held on Jul. 17, the RBI had accepted INR 199.25 billion worth of offers for the same three gilts, against INR 250 billion offered to be bought back by the government. The cut-off price on the 7.27%, 2026 gilt was higher than the valuation by Financial Benchmarks India Ltd. the previous day, and also higher than the INR 101.10 seen in an Informist poll.    

After the government bought back INR 695.25 billion worth of gilts maturing in 2026-27 (Apr-Mar) in FY26 so far, traders expect the Centre to buy back at least INR 300 billion more of gilts with this maturity as the government looks to reduce its heavy redemptions scheduled for FY27. Additionally, traders expect the transfer of the RBI's INR-2.69-trillion surplus for FY25 to the government to boost buybacks.  

The buyback auction will be conducted through the RBI's Core Banking Solution (E-Kuber) system. The RBI said the government could decide the amount for individual securities, accept more or less than the notified amount of INR 300 billion, and accept or reject any of the offers wholly or partially without assigning any reason.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Cassandra Carvalho

Edited by Avishek Dutta

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