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-State government development loans attract insurance and PSU funds in India.

Global Banking News-August 23, 2012--State government development loans attract insurance and PSU funds in India(C)2012 ENPublishing -

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)
Geographic Code:9INDI
Date:Aug 23, 2012
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