Sources said that a large number of NRI investors are withdrawing their deposits and investing in the RIBs. "This is taking time and as a result the mopup has so far not that phenomonal," a sourcehandling the issue said. NRIs are exiting out of FCNR (B) deposits and NR(E)NR deposits to invest in RIBs as the interest rates being offered by the RIBs are very attractive at 7.75 per cent for five years for dollar funds.

``The view that is being inferred from this deferred closure of the RIBs 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,'' said a banker.

In any case these delays in completing the issue will not be taken well by the financial markets, especially when there was a lot of hype built up over the early closure of the issue. Although SBI insiders claim that the issue is "on course" and over 38,000 applications were picked up by NRI investors, India's second sovereign issue by proxy failed to set the global markets -- stretching from the Middle East to the US -- by fire. The fervour of patriotism has also failed to lift thesentiment. Analysts attributed the "lukewarm" response to the issue is the apparent "mismanagement" in the US in marketing the issue.