Features
- The minimum amount of deposit is Rs. 20,000/- and thereafter in the multiples of Rs.10,000/. Bank reserves the right to accept/ reject Bonds in part or full as per application.
- The tenure of Long Term (Subordinated) Bonds will be 126 months from the date of issuance.
- LTSB Series-II will carry a fixed interest rate of 8.25% p.a. payable quarterly on 30th June, 30th September, 31st December and 31st March of every year, till the maturity or till the due date as per call option if exercised by the Bank whichever is earlier.
How to apply
- Each applicant (including the joint applicants) should mention his/her PAN Number on the application form
- Cheque(s) / Demand Draft (s) should be drawn in favour of “Bharat Co-operative Bank (Mumbai) Limited (LTSB Series – II)” and crossed “Account Payee only” payable at any centre where the Bank’s branches are located. The full value of the LTSB Series- II applied for is to be paid along with the said application form.
- Applicant should indicate the application number and name of first applicant on the reverse of Cheque(s) / Demand Draft(s) through which the payment is made.
- The Cheque(s)/Demand Draft (s) returned unpaid by other bank will not be re-lodged and the said LTSB application form will stand rejected.
- The Bank reserves the right to reject incomplete application form without assigning any reasons thereof.
Terms
- This is a limited period offer subject to raising Rs.30 Crores.
- Facility of premature withdrawal/closure for these Long Term (Subordinated) Bonds (LTSB) is not available.
- No advances/overdrafts will be granted against the security of Long Term (Subordinated) Bonds (LTSB) issued by our Bank or any other Bank.
- The Bank will not recognize any lien, charge or other encumbrance on the Long Term (Subordinated) Bonds (LTSB). Bonds placed under Long Term (Subordinated) Bond scheme cannot be pledged anywhere.
- Bonds placed under “Long Term (Subordinated) Bonds” (LTSB) will not be eligible for insurance cover from the Deposit Insurance & Credit Guarantee Corporation (DICGC).
- LTSB issue shall not have a “Put Option” or a “Step up Option”, however the Bank shall have a “Call option” after 10 years, which shall be exercised with prior permission of Reserve Bank of India. Reserve Bank of India before giving the permission would, among other things, take into consideration the Bank’s CRAR position both at the time of exercise of the “Call Option” and after the exercise of the “Call Option”.
- The option of “Cumulative” interest on bond is not available under Long Term (Subordinated) Bonds (LTSBs).
- LTSB is a part of Tier II capital and is not a normal deposit and would not mature for redemption before ten years.
- Redemption of LTSB at maturity shall be made only with the prior approval of the DoR, RBI.
- Bonds placed under the “Long Term (Subordinated) Bonds” shall not be transferable.