The rate of interest on the Floating Rate Bonds, 2014 (FRB, 2014) applicable for the year (May 20, 2008 to May 19, 2009) shall be 7.66 percent per annum.

It may be recalled that the rate of interest on the FRB, 2014 was set at a spread (as decided in the auction held on May 19, 2003) over and above the variable base rate to be announced annually. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices of the last three auctions of Government of India 364 day Treasury Bills held up to May 19, 2008. The variable base rate based on the average rate of the implicit yields at cut-off prices of the said last three auctions of Government of India 364 day Treasury Bills worked out to be 7.52 percent. The spread decided in the auction held on May 19, 2003 was (+) 0.14 (plus 0.14) percent. The coupon rate has been fixed accordingly.

Sourced From: Reserve Bank of India