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Nabard cancels ₹7000 crore bond sale as bids stall at ₹3030 crore
Economy
Published on 16 May 2026
Investors capped bids around 8% so the sale stopped
Nabard has withdrawn a planned three-year bond sale scheduled for Friday, citing weak investor demand that would have forced higher borrowing costs. The lender targeted ₹7,000 crore, including a ₹5,000 crore greenshoe option, but received bids worth only about ₹3,030 crore. Dealers estimate yields could have been about 7.79% for the base amount and as high as 8.04% if all bids were accepted. Since few expected Nabard to accept 8%, bidding stopped around ₹3,000 crore.
- Nabard pulled a three year bond issuance on Friday
- Target was ₹7000 crore including a ₹5000 crore greenshoe
- Bids received totaled only about ₹3030 crore
- Estimated cost would be ~7.79% for base ₹2000 crore
- Accepting all bids could lift yield to 8.04%
- Market view: Nabard likely would not accept rates near 8%
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times