The Reserve Bank of India has ordered five state-owned banks to raise money through zero coupon government bonds in lieu of equity at ‘fair value’, reported the Economic Times on Monday.
These are the Central Bank of India, Indian Overseas Bank, Uco Bank, Bank Of India and Punjab & Sind Bank, said the report. A zero-coupon bond does not pay interest regularly and are issued at deep discounts to their face value.
Read more: The Economic Times.
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