BackRBI clarifies on banks’ depreciation losses
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02 Apr 2014, 08:01 PM IST
RBI clarifies the option for banks to spread the losses on account of the depreciation of their investments in bonds has ended on 31 Mar
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Mumbai: The Reserve Bank of India (RBI) on Wednesday clarified that the option for banks to spread the losses on account of the depreciation of their investments in bonds has ended on 31 March and no further extension been given.
In a circular issued on 23 August, RBI had given the option for spreading the so-called mark to market losses over three quarters.
This was because the bond yields had risen sharply during that period, necessitating huge provisions on such investments.
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Published: 02 Apr 2014, 08:01 PM IST
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