IDBI Bank offers a wide range of Bonds and they are termed as IDBI Bonds.
The Industrial Development Bank of India Limited or IDBI Bank was incorporated in 1964. IDBI Bank is one of the leading private banks of India. Recently, it was ranked the 10th largest development bank of the world. IDBI Bank offers a variety of credit and other financial assistances to many infrastructure projects in India.
IDBI is the founder of the following institutions:
1. The National Stock Exchange of India (NSE)
2. National Securities Depository Services Ltd (NSDL)
3. The Stock Holding Corporation of India Limited (SHCIL)
IDBI Bonds are also known as IDBI Flexibonds. They are tax-saving bonds or tax-saving infrastructure bonds.
The most recent issue of IDBI Flexibonds is the launch of IDBI Flexibond 23.
The coupon rate offered by IDBI on Tax Savings Bonds are much lesser than the coupon rates offered by other Bonds, which do not have tax savings options.
IDBI Flexibonds can be categorized into four types:
Tax Savings Bonds: These bonds are offered with a maturity period of 3 years with an interest rate of 5.5%.
Regular Income Bonds: This type of IDBI Bonds provides better returns and the risk factor is less. They are appropriate for high net worth investors for diversifying risk.
Growing Interest Bonds: This is a bond with a maturity period of five years with Yield To Maturity of 6.3%.
Retirement Bonds: The Retirement Bond offers a YTM or Yield to Maturity of 7.24% and the maturity period is 10 years. It is quite lucrative for investors looking for high net worth.
The minimum investment for IDBI Flexibonds 23 is Rs.5, 000. There are two options for the investors: Annual Interest Option and Cumulative Option. The first option is offering an interest rate of 5.8%, which will be paid annually for 5 years. With the Cumulative Option, Rs. 5,000 will convert to Rs. 6,630 at the time of maturity (5 years) and the Yield to Maturity is 5.8%.
There has been a revision in the credit rating of the outstanding bond issues of IDBI Ltd. The “AAA” or triple A rating has been revised to “AA+” (stable) by CRISIL. The “LAAA” or L triple A rating has been revised to “LAA+” (stable) by ICRA. The “Ind AAA” has been revised to “Ind AA+” (stable) by FITCH.
The Industrial Development Bank of India (IDBI) has begun the redemption of bonds which were issued in 1996 to reap the benefits of the prevalent low rates of interest.
The Bonds of IDBI are listed both on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). They are tradable on the secondary debt market.
The Industrial Development Bank of India Limited or IDBI Bank was incorporated in 1964. IDBI Bank is one of the leading private banks of India. Recently, it was ranked the 10th largest development bank of the world. IDBI Bank offers a variety of credit and other financial assistances to many infrastructure projects in India.
IDBI is the founder of the following institutions:
1. The National Stock Exchange of India (NSE)
2. National Securities Depository Services Ltd (NSDL)
3. The Stock Holding Corporation of India Limited (SHCIL)
IDBI Bonds are also known as IDBI Flexibonds. They are tax-saving bonds or tax-saving infrastructure bonds.
The most recent issue of IDBI Flexibonds is the launch of IDBI Flexibond 23.
The coupon rate offered by IDBI on Tax Savings Bonds are much lesser than the coupon rates offered by other Bonds, which do not have tax savings options.
IDBI Flexibonds can be categorized into four types:
Tax Savings Bonds: These bonds are offered with a maturity period of 3 years with an interest rate of 5.5%.
Regular Income Bonds: This type of IDBI Bonds provides better returns and the risk factor is less. They are appropriate for high net worth investors for diversifying risk.
Growing Interest Bonds: This is a bond with a maturity period of five years with Yield To Maturity of 6.3%.
Retirement Bonds: The Retirement Bond offers a YTM or Yield to Maturity of 7.24% and the maturity period is 10 years. It is quite lucrative for investors looking for high net worth.
The minimum investment for IDBI Flexibonds 23 is Rs.5, 000. There are two options for the investors: Annual Interest Option and Cumulative Option. The first option is offering an interest rate of 5.8%, which will be paid annually for 5 years. With the Cumulative Option, Rs. 5,000 will convert to Rs. 6,630 at the time of maturity (5 years) and the Yield to Maturity is 5.8%.
There has been a revision in the credit rating of the outstanding bond issues of IDBI Ltd. The “AAA” or triple A rating has been revised to “AA+” (stable) by CRISIL. The “LAAA” or L triple A rating has been revised to “LAA+” (stable) by ICRA. The “Ind AAA” has been revised to “Ind AA+” (stable) by FITCH.
The Industrial Development Bank of India (IDBI) has begun the redemption of bonds which were issued in 1996 to reap the benefits of the prevalent low rates of interest.
The Bonds of IDBI are listed both on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). They are tradable on the secondary debt market.
