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