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NHB hikes interest rates on bonds
November 30, 2004 15:46 IST
The National Housing Bank on Tuesday hiked the interest rates on its capital gains bonds by 0.25-0.35 per cent effective from December 1.
As per the revised figures, interest would be 5.35 per cent on investments up to Rs 1 crore (Rs 10 million) in bonds having five-year maturity with put/call option at the end of three years, a bank said in New Delhi.
The pre-revised interest rate was 5.10 per cent. For investments of over Rs 1 crore in bonds having five-year maturity with put/call option at the end of third year, the interest would be 5.45 per cent instead of the existing 5.1 per cent.
For the seven-year maturity bonds with put/call option, the interest would be 5.50 per cent against the existing 5.25 per cent. The bonds are rated 'AAA' with stable outlook by credit rating agency Crisil, it said.
The decision to hike interest rate on its bonds comes after Reserve Bank hiked repo rate by 0.25 per cent to 4.75 per cent, indicating a hardening rate structure in the country.
Investors could opt for receiving interest payments either annually on April 1 each year or cumulatively on maturity, it said, adding that minimum amount for subscription is Rs 10,000 and in multiples thereof and bonds are on tap.
The capital gains bonds were opened for subscription in August 2002 and the NHB has so far mopped up Rs 5,500 crore (Rs 55 billion) through these bonds.