Reissued bonds account for nearly 66% of state borrowings in H1 FY27: Report
RBI moved higher in a monetary policy development for FY27.
· Economic Times Markets
In recent years, states have made a substantial impact on their finances by reissuing bonds, which now form a significant portion of their market borrowings. This trend, particularly pronounced over the last two years, illustrates an increased involvement from state governments.
Key facts
- Period
- FY27
The analysis
RBI reported movement of 66% for FY27. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +1.6% on the day at ₹134.46, and has returned -3.8% over three months. It sits 24% below its 52-week high. The banks sector has moved -2.5% over the same period, so Bank of India is running 1.3 points behind its peers.
For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is BANKINDIA.
- Sector exposure: Banks.
In this story
Related coverage
India bonds extend weekly slide; struggle to shake off RBI hike, hawkish stance shift
RBI's 29-day VRRR auction receives tepid response despite high surplus liquidity
Housing sales may take a hit on higher mortgage rates: CREDAI, NAREDCO
RBI says it will ensure 'undervalued' Rupee finds its correct level
RBI's Next Rate Hike Will Be Of 0.50%: SBI Economists