"The response to the issue has been extremely good. Available information also indicates that an overwhelming large number of small applicants are still wanting to apply. Because of persistent demands from such investors worldwide, keeping in view the fact that there were a number of intervening holidays in all the markets reached by the bank like the south-east Asia, India, the Middle East and the US, the bank has decided to close the issue at the end of business hours on Monday, August 24," a SBI release said.

Sources said a large number of non-resident Indian investors were withdrawing their deposits and investing in the bond issue. "This is taking time. Which is why the mopup so far is not phenomenal," a sourcesaid.

Non-resident Indians are exiting from FCNR(B) deposits and NR(E)NR deposits to invest in the bond float, as interest rates are very attractive at 7.75 per cent for five years for dollar funds.

Insight: not a good sign

The view that is being inferred from the deferred closure of the resurgent bonds is that the issue has not attracted the response that was anticipated by SBI. The fact that FCNR(B) account holders are shifting to RIBs is not a good sign, as it will not contribute to any net inflows of dollars. In any case, these delays in completing the issue will not be taken well by financial markets, especially when there was a lot of hype built up over the early closure of the issue.