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India banks to boost sales of Basel bonds

Banks turn to bonds as rising bad debt, poor earnings spoil prospects for equity sales

HIGHER PAYMENTS: While state-owned banks are generally considered safer than private banks, Basel III notes are considered risky because of the writedown features they contain, and hence require higher interest.


INDIA'S banks will ramp up sales of bonds that act as capital buffers in 2015 as lacklustre earnings and rising soured loans make share sales tough, Fitch Ratings Ltd says.

State-owned lenders in Asia's third-biggest economy issued 122.5 billion rupees (S$2.6 billion) of