IDBI Bonds

The Industrial Development Bank of India Limited, or IDBI, was incorporated in 1964 and is one of the leading private banks of India.
IDBI is the founder of the following institutions:

• The National Stock Exchange of India (NSE)
• National Securities Depository Services Ltd (NSDL)
• The Stock Holding Corporation of India Limited (SHCIL)
• Tax Savings Bonds offered with a maturity period of 3 years with an interest rate of 5.5%.
• Regular Income Bonds provide better returns with a lower risk factor. They are appropriate for high net worth investors to diversify risk.
  
  
  
• Growing Interest Bonds has a maturity period of five years with Yield To Maturity (YTM) of 6.3%.
• Retirement Bonds: offer YTM of 7.24% with a maturity period is 10 years. These are quite lucrative for investors looking for high net worth.

The minimum investment for flexibonds 23 is Rs.5, 000 and investors have two options- the Annual Interest and the Cumulative Option. The first offers an interest rate of 5.8%, which will be paid annually for 5 years. With the second, Rs. 5,000 will be converted to Rs. 6,630 at the time of maturity (5 years) and, a YTM of 5.8%.

There has been revision in the credit rating of IDBI's outstanding bond issues.

• The "AAA" or triple A rating has been revised to "AA+" (stable) by CRISIL (Credit Rating Information Services of India Limited).
• The "LAAA" or L triple A rating has been revised to "LAA+" (stable) by ICRA (Indian Credit Rating Agency).
• The "Ind AAA" has been revised to "Ind AA+" (stable) by FITCH.

IDBI has begun the redemption of bonds, which were issued in 1996, to reap the benefits of the prevalent low interest rates. Its bonds are listed both on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and are tradable on the secondary debt market.