Just this morning, Mr Mahajan shared with me that despite valiant attempts knowledge of and appreciation of the BCSBI codes was spreading very slowly and this was a cause of concern. The Chairmen of the RRBs must appreciate that the poor borrower who comes to the door step of the Bank is highly unlikely to meet the Chairman of the bank.
Coco bonds can be attractive to institutional investors as well; owing to their particular risk, they promise superior returns to those on normal bonds – which accounts for much of their appeal to investors, particularly in the current low-interest-rate setting. So are coco bonds a “silver bullet” for banks? In Germany at least, their importance has been marginal up to now.