SBI bonds issue to open from Feb 21, closes Feb 28

POSTED BY rakesh ON February 16, 2011 7:31 pm COMMENTS (7)

Retail applicants will get interest at the rate of 9.75% per annum on series 3 lower Tier II bonds and 9.95% in case of series 4 lower Tier II bonds. Non retail applicants will get 9.3% and 9.45%, respectively. There is no put option and step up coupon in both series of bonds. These are unsecured bonds.

Redemption date for series 3 bonds will be 10 years from the deemed date of allotment and 15 years for series 4 bonds.

Does it makes sense to go for these bonds for such a long duration or SBI are smart and they anticipate further rise in interset rates over a period of time.

Comments please.

 


7 replies on this article “SBI bonds issue to open from Feb 21, closes Feb 28”

  1. neeraj saini says:

    i think if you want to invest for long term it is better to go for equity or mutual funds.

    1. shahid hasan says:

      Dear manish is there bettr option than these sbi bonds as i dont have demat ac and i am NRI . what do u say about the FD and the mutual fund to get more money at present situation .

      thanks

  2. Sagar says:

    freinds,
    1) I dont have demat a/c can i apply for bonds
    2) For 15 years intrest rate is 9.95, but is it calculate on quartly compounding basis?
    pls replay

    1. 1. No , you need demat

      2. Annual basis and paid on annual basis

  3. Rajendran says:

    Can v apply for these bonds online!!!! Last time they messed it up at the last moment…. if so they have a 5L worth customer in me!!!!

    1. No you cant invest in these online , you have to go to bank and fill up the form there .. But you need to have demat account for this which will carry these bonds .

      Manish

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