ICICI Bank had given Kingfisher a loan of Rs 100 at an annual interest rate of 8 per cent or Rs 8 per annum. If India Global buys the loan for, say, Rs 80, the fund will continue to earn an interest of Rs 8 from Kingfisher. So, the yield on the investment by India Global increases to 10 per cent compared with 8 per cent enjoyed by ICICI Bank.
Can u explain above in brief?