Just SLR status won’t sell state papers

Despite the interest among the banks and insurance companies to chase these papers the divergence in spread is now beginning to stand out. These are somewhat like the Euro bonds.

The parentage is deciding the pricing of the paper though all are sovereign and are traded in the same currency. Just compare the pricing difference between a German Euro bond and a Greek one, to figure out how it goes. As more Indian states enter the bond markets, how efficiently they manage their state finances will determine the cost of raising funds instead of crutches like an SLR tag.

Subhomoy is a Deputy Editor based in New Delhi.


Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.