Version 1 of recap bonds yet to mature

In the 1990s, the govt had for the first time issued recap bonds worth Rs 20,000 cr

This is not the first time that recapitalisation bonds have been used by the government to help capital-starved banks. The previous bonds, going by recent Budget documents, have not yet matured.

The annexure of the receipts budget for 2017-18 shows the outstanding against old ‘special securities issued to nationalised banks converted into marketable securities’ was at Rs 20,808.75 crore. These were the first version of recapitalisation bonds, issued in the 1990s, that the government is using again to rescue banks. 

Most of these old bonds are maturing through 2022 to 2032, indicating the original maturity profile of these bonds were as high