Private banks bought government bonds to the tune of Rs.8.343 crore in a single day. This was the largest single-session purchase of government bonds by private banks in seven years. government bond Why do banks buy government bonds The purchase was made on October 21, 2023, and was seen as a sign of confidence in the Indian economy. Private banks are typically more risk-averse than public sector banks, and their willingness to invest in government bonds suggests that they believe that the Indian economy is on a strong footing. According to Clearing Corp of India data, this is the largest purchase since November 15, 2016. It is noteworthy that the net sales, which were Rs 10,100 crore last Octo...