Why are perpetual bonds issued in India?
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I also want to know this answer. Please help me to know this question that is - Why are perpetual bonds issued in India?
I also want to know this answer. Please help me to know this question that is – Why are perpetual bonds issued in India?
See lessGovernment institutions including Banks issue Perpetual Bonds to fulfill their capital adequacy requirement. Perpetual bonds are issued under Basel norms to shore up the capital of banks. If a bank’s capital dips below certain thresholds due to bad assets, they can skip interest payments on these boRead more
Government institutions including Banks issue Perpetual Bonds to fulfill their capital adequacy requirement.
Perpetual bonds are issued under Basel norms to shore up the capital of banks. If a bank’s capital dips below certain thresholds due to bad assets, they can skip interest payments on these bonds and even write-down their value. This makes them a lot closer in nature to equity than debt.
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