Banks to move RBI on switching bond holdings Maharashtra : Banks are mooting a proposal to switch their bond holdings from available-for-sale (AFS) category to held-to-maturity (HTM) to avoid mark-to-market losses caused by the recent surge in bond yields following the Reserve Bank of India measures to salvage the battered rupee. "We want to switch our high yield bonds in the AFS category to the HTM. This is the proposal which banks are now planning to take to RBI," a senior public sector banker told PTI on the condition of anonymity. Currently, banks are allowed to switch their bond holdings from HTM category to AFS and not vice-versa. Bond yields rose after recent RBI measures aimed at containing free fall of rupee, which have lost nearly 10 per cent this fiscal.
Posted on: Tue, 30 Jul 2013 15:07:50 +0000
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