Recapitalisation bonds for reviving PSU banks won't have same tenure

During the present recapitalisation exercise, the bonds will have non-SLR status and will be non-tradable

The Union government is mulling different tenures for its Rs 1.35-trillion recapitalisation bonds for reviving public sector banks.

In doing so, the government may follow a different practice than the one adopted in its previous recapitalisation bond exercise in 1993-94 when it had a fixed tenure for all the bonds before they were converted into perpetual bonds.

"The recapitalisation bonds may likely have different tenures so that when the redemption of bonds takes place, the government doesn't have to pay the entire amount at one go to the banks," said a senior finance ministry official.

The Finance Ministry secured the