SBI raises Basel-compliant ATI Bonds

Bond markets in India have diversified to a large extent but there is still potential for development and reduction in the cost of borrowing for the government as well as private borrowers. Elaborate. (150 Words)

Approach:

• Introduce by describing what is a Bond and bond market in India
• Through a diagram show different types of bonds (like corporate bonds, Municipal Bond, Government bonds, etc.)
• Elaborate the role of the bond market in supporting the stable economic growth of the country. Highlight new developments like AT-1 bonds, RBI scrapping Ad-hoc treasury bonds for Ways and Means advances, etc.
• Discuss the shortcomings in Bond markets in India and ways to tackle it
• Way Forward / Conclusion