Higher yields keep demand strong for perpetual bonds

Investors should prefer nationalised bank perpetual bonds backed by the government. Despite the NPA problems these banks have honoured their commitment in the past. About six state-owned banks, including IDBI Bank, Bank of Maharashtra, Dena Bank, Uco Bank, Corporation Bank and United Bank of India, have bought back ?13,000 crore-14,000 crore worth of perpetual bonds and repaid investors in full.

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