The write-down of $17 billion worth of contingent convertible bonds of fore risks surrounding Indian additional tier-1 (AT1) bonds, which are instruments of a similar nature.
Analysts said following regulatory changes taken after the YES Bank fiasco in 2020, the domestic landscape for AT-1 bonds has significantly improved. As such, the latest episode surrounding Credit Suisse is unlikely to have a substantial impact on domestic AT1 bond issuances by banks.
In the first such bond sale following the Credit Suisse episode, state-owned lender Punjab National Bank is set to issue AT1 bonds worth ₹2,000 crore on Friday, sources said.
Treasury officials expect the coupon for PNB's bonds to be set around 8.50 per cent, not much above the 8.25 per cent set for SBI's last AT1 bond sale on March 8.
Considering the fragile sentiment currently prevailing in the global banking sector, the expected rate of interest for PNB's AT1 upcoming issuance suggests that domestic investors for these securities are not too concerned.
Diese Geschichte stammt aus der March 22, 2023-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der March 22, 2023-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Large order book, EV demand drive Sona BLW growth
Auto parts maker Sona BLW Forgings Precision reported strong revenue in the fourth quarter of financial year 202324 (Q4FY24) amid growing demand for electric vehicles.
Jump in passive fund inflows on new launches, EPFO boost
Passive funds attract ₹37,200 crore inflows in 2024
Iran prez Raisi's death unlikely to impact Indian markets
Iranian President Ebrahim Raisi's death in a tragic helicopter crash is not seen as having a big impact on the domestic markets unless it leads to any escalation in geopolitical tensions, according to experts.
Gold and silver hit record highs on Fed rate-cut hopes
Gold surged to an all-time high, boosted by increasing optimism the Federal Reserve will start easing monetary policy this year along with rising geopolitical tensions in the West Asia.
FPIs exit BFSI, IT stocks in May's opening weeks
FPIs trim holdings, await positive signals; experts eye post-Budget opportunities amid election tension
Delhi's peak power demand logs new May high of 7,572 Mw
Northern states lead the national power demand as heatwave engulfs the region
Tweaking the inflation targeting mandate
A key focus for the new govt should be to ensure wider consultation in setting inflation target
Deconstructing India's national security system
In recent years, several books have been published on India's national security, but what makes this volume edited by Milan Vaishnav both unique and especially useful, is its comprehensive description and critical analysis of the institutional underpinnings of India's security policy.
Infra visions in manifestos
Elections have never been won or lost solely based on voters reading manifestos! But it is a fact that think-tanks and policy cells of various political parties spend considerable time drafting their manifestos and getting them cleared by their political bosses.
Iran President Raisi dies in helicopter crash
FOREIGN MINISTER, 6 OTHERS ON BOARD ALSO KILLED | MOKHBER TO BE INTERIM PRESIDENT