India's Sovereign Green Bonds are sustaining robust investor appetite, evidenced by a bid-cover ratio of 2.32 in FY 2025-26, with the average bid-cover ratio remaining above 2 since their inception in FY 2022-23. This resilience persists even without tax incentives, as investors recently bid a 7 basis point greenium—a premium over conventional bonds—in the November 28, 2025 auction, underscoring the instruments' appeal in channeling funds toward climate goals.
SGRBS SIGNAL GREEN INVESTOR CONFIDENCE
In a recent Rajya Sabha reply, Minister of State for Finance Pankaj Chaudhary highlighted the sustained traction for Sovereign Green Bonds (SGrBs), a key pillar of India's climate finance strategy. "The investors of SGrBs offered a greenium of 7 basis points in the latest auction held on November 28, 2025 indicating that the bonds remain an attractive option for investors," Chaudhary stated, emphasizing their competitive edge without fiscal sweeteners. The average bid-cover ratio, an indicator of interest in buying bonds at auction, has remained above 2 since the bonds were first issued.
Launched in 2023 as part of India's sovereign debt diversification, SGrBs fund eligible green projects like renewable energy, clean transportation, and energy efficiency under strict environmental criteria aligned with global standards.
Chaudhary said the government has reviewed investors' interest in SGrBs and that there is no proposal to offer tax incentives on them.
UNCLAIMED FUNDS REMAIN HIGH
In a separate written reply, Chaudhary gave figures on unclaimed financial assets. Public sector banks transferred Rs 60,518 crore to the Reserve Bank of India's Depositor Education and Awareness (DEA) Fund as of end-January 2026, per Chaudhary's disclosure. This fund, set up by the RBI under Section 26A of the Banking Regulation Act, holds dormant deposits earning interest until rightful owners claim them.
Unclaimed insurance claims with insurers reached Rs 8,973.89 crore by February-end 2026, while unclaimed amounts in mutual funds under SEBI regulations stood at Rs 3,749.34 crore. The figures were given in a written reply to the Rajya Sabha on March 24. Chaudhary noted proactive regulator measures: "In order to ensure timely identification of rightful claimants, reducing both the existing stock of unclaimed financial assets as well as the fresh accretion to it and to simplify and expedite the claim process for citizens, various measures have been undertaken by the financial sector regulators."
Initiatives include RBI's UDGAM portal for deposit searches, IRDAI's Bima Bharosa portal and SEBI's MITRA platform.
Meanwhile, regulators aim to curb the fresh accretion of unclaimed assets.