Salient features of Bhavisya Nirman Bonds as on 06/10/2010 are as under:

Bhavishya Nirman Bond is basically a Deep Discount Bond, which has been proved to
be a very good investment avenue for commercial banks.The salient features of
Bhavishya Nirman Bonds are as under:
• Issue Price : Rs 9300/- per bond for investments upto Rs 5.00 crore & Rs 9250/-
per bond for investments above Rs 5.00 crore ( per day per applicant).
• Minimum subscription for 5 bonds (i.e., Rs.46500/-)
• Maturity period – 10 years from the date of allotment of bonds.
• No deduction of Tax at source
• The interest rate on application money @ 3.5% till allotment of bonds.
• BNB is rated 'AAA' and 'LAAA' byCRISIL and ICRA respectively.
• Axis Bank Ltd. is the banker to the issue.
• Doccuments to be enclosed: 1.Address Proof, 2.PAN-Card & 3.copy of one
cancelled cheque
• Registrar to the issue: M/s UTI Technology Services Ltd.,( Contact persons:
Mrs.Asha Latha / Mr.Surendragaud – Tel: 022-67931043/1232/1252/1125 FAX-
022022-67931099- Email; nabard@utitsl.co.in sunil.bhoite@utitsl.co.in
rajesh.bhujbal@utitsl.co.in ) Plot # 3 ,Sector 11,CBD Belapur,Navi Mumbai –
400614.
• Issue can be subscribed by Individual investors, NRIs, Hindu undivided families
through Karta of the HUF , PF, Superannuation funds and Gratuity funds,
Compaines, Trust which are authorised to invest in the bonds, PFI , SCB,
Commercial Banks, Cooperative Banks, Mutual Funds and Insurance Companies.
• The listing of the Zero Coupon bonds in BSE will make it liquid. 50 Bonds &
above can traded in BSE.
The following table shows the comparison of BNB with Fixed Deposit.

BNB FD @9.30%
Initial Investment 9300.00 9750.00
Maturity Amount 20000.00 23722.88
Gross Return 10750.00 13972.88
Income Tax 0.00 4703.27
Indexed cost of investment 14415.00 0.00
Capital Gains 10700.00 0.00
Capital Gains Tax 1070.00 0.00
Post tax return 9630.00 9269.61
The advantages of BNB are as under:

➢ An investor can put a small amount of money that can grow over many years.
➢ An investor can purchase different kinds of BNBs in secondary markets also
➢ The long term maturity dates allow an investor to plan for a long range goal, such
as paying for child's education, marriages and post retirement expenditures
particularly for employees working in the private sector.
➢ A large investor base, encompassing investors with differing perceptions
regarding the movement of market rates in future and liquidity requirements, will
enhance the market.
➢ No deduction of tax at source will provide an opportunity to investors to pay taxes
as per their requirements.
➢ The listing of Zero Coupon Bonds will make it liquid and big investors (posseing
50 Bonds & above) can get their investment liquidated in the market(not with
NABARD) to meet their unforeseen requirements even before expiry of term of
the bond.
➢ Arranger fee Rs.50/- per Bond for investment up to Rs.5.00 crore per application
➢ Arranger fee Rs.15/- per Bond for investment above Rs.5.00 crore per application
For further guidance browse net- www.nabard.org /contact Shri E
Sundararajan, Manager and Nodal Officer for Bhavisya Nirman Bonds (080-
22225248 / mobile No.9448497000 FAX 080-22222148 / 022-22292074) and
email sundararajan1954@yahoo.co.in