-State government development loans attract insurance and PSU funds in India.
Global Banking News - 23 August 2012
A reduction in the bulk deposit rates by banks in India has led to Public sector units (PSU) and insurance companies parking their cash in state government development loans
A state development loan auction on Tuesday saw a large number of non-competitive bidders. Non-competitive bidders include entities like PSUs and non-life insurance firms, which are neither banks nor primary dealers. Traditionally non-competitive bidders have preferred secondary market purchases to state development loans (SDL), which are sovereign guaranteed ten-year market borrowings.
According to federal bank president treasury, Ashutosh Khajuria, their aim is to book profits through capital gains, and not to book profits through interests.
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|Publication:||Global Banking News (GBN)|
|Date:||Aug 23, 2012|
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