T-Bill Profit Calculation

Hi All,

I want to understand the working of t-bills.
I have invested 1Lakh in 182 Day T-Bill which is maturing on 22nd Sep 2023.

Coin order says that I have invested in 1000 units @100 rupees per unit which is eq to 1 Lakh.
Then how does it profit me? RBI website says that YTM will be 7.22% because price is 96.52INR per unit, but my coin order is placed at 100INR per unit, then how will I accrue the profit?

My initial thought was that units will be credited to my account at the rate of 96.52, but it doesn’t seem like that.
Any insights would be appreciated on what I am failing to understand.

When you apply, full amount is blocked since the discount at which T-Bills will be issued is not known. When allotment is done it’ll be at the price discovered in the auction at excess amount will be credited back to your account.

Upon maturity Rs. 100 per unit will be credited to your account, the difference between this and allotment price will be your profit. You can check this chapter on Varsity fir more information: