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Jun 16, 2018
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RBI allows banks to spread provisions against bond losses
The Reserve Bank of India (RBI) on Friday allowed banks to spread their provisions against bond losses in the June quarter over up to four quarters on account of rising yields and declining prices of bonds. The rising yields resulted in a notional loss to the banks on a mark to market (MTM) basis for which a corresponding provision had to be made. This is an extension of a similar dispensation offered by the central bank in the March quarter. The yield on the 10-year benchmark government security has risen 56 basis points (bps) between April 1 and June 15.
Source -
https://www.financialexpress.com
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