India to Raise ₹320 Billion via Bond Auction on October 31: RBI Details Tranche Breakdown

In a strategic move to meet its fiscal borrowing targets, the Reserve Bank of India (RBI) will conduct a government bond auction worth ₹320 billion on October 31, 2025. The auction will be held using the multiple price method, allowing investors to bid competitively for different securities.

The issuance spans four distinct tranches, offering a mix of zero-coupon and interest-bearing bonds with maturities ranging from 2028 to 2055. This diversified structure is designed to attract a broad spectrum of institutional investors and support the government’s medium- to long-term funding needs.

Key Highlights:

- Notable Update:
Total auction size is ₹320 billion, to be conducted on October 31, 2025.

- Major Takeaway:
The auction will follow the multiple price method, where successful bidders pay the price they bid.

- Breakdown of Issuance:
- ₹50 billion of 0.00% 2054 bonds
- ₹70 billion of 7.24% 2055 bonds
- ₹110 billion of 6.28% 2032 bonds
- ₹90 billion of 5.91% 2028 bonds

- Strategic Context:
This auction is part of the Centre’s second-half borrowing plan for FY25, aimed at raising ₹6.77 trillion through 
bond sales.

Why It Matters:

The auction reflects the government’s calibrated approach to debt management, balancing investor appetite with fiscal requirements. The inclusion of long-dated and zero-coupon bonds signals a nuanced strategy to manage interest rate risks and broaden the investor base.

Sources: Reserve Bank of India (RBI), BSE Circulars, NSE Announcements