14-09-2023 09:38 AM | Source: LKP Securities
Quote on today`s RBI`s New Valuation Rules for Bonds by Ajit Kabi, LKP Securities
![](https://portfolio.investmentguruindia.com/uploads/news/ada32a51fc5cb8d593db78d112778a8d.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below the Quote on today`s RBI`s New Valuation Rules for Bonds by Ajit Kabi, Banking analyst at LKP Securities
"RBI has removed the cap on HTM bond investment by banks. Typically, Government bonds are categorized as HTM investments. Currently the investment limit is 19.5% of the bank's net deposit.
The recent move will allow banks to invest more on Govt securities and state development bonds. The new norm is likely to reduce the earning volatility on banks because HTM bonds need not be marked to market.
Investment in the AFS (available for sale) category also benefits since the new norms state they can move all valuation gains or losses in this category to an AFS reserve, bypassing their income statement."
The recent move will allow banks to invest more on Govt securities and state development bonds. The new norm is likely to reduce the earning volatility on banks because HTM bonds need not be marked to market.
Investment in the AFS (available for sale) category also benefits since the new norms state they can move all valuation gains or losses in this category to an AFS reserve, bypassing their income statement."
Above views are of the author and not of the website kindly read disclaimer
Latest News
![](https://portfolio.investmentguruindia.com/uploads/news/IndiGo 01.jpg)
Indigo?s net profit drops 11.7 pc to Rs 2,728 cr in ...
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
Sell Gold Below 67600 SL Above 67900 TGT 67200/66900...
![](https://portfolio.investmentguruindia.com/uploads/news/DGFT.jpg)
DGFT tweaks Export Promotion Capital Goods scheme to...
![](https://portfolio.investmentguruindia.com/uploads/news/Geojit Financial Services.jpg)
Evening Roundup : A Daily Report on Bullion Energy &...
![](https://portfolio.investmentguruindia.com/uploads/news/Broker _26.jpg)
Daily Market Commentary : The broader market too end...
![](https://portfolio.investmentguruindia.com/uploads/news/Budget2024 07.jpg)
India Strategy : Union Budget 2024-25 by Yes Securit...
![](https://portfolio.investmentguruindia.com/uploads/news/23 TATA Power.jpg)
Tata Power Company sparkles after its step down arm ...
![](https://portfolio.investmentguruindia.com/uploads/news/iphone26.jpg)
Apple set to manufacture high-end iPhone 16 Pro mode...
![](https://portfolio.investmentguruindia.com/uploads/news/CMS Info Systems.jpg)
CMS Info Systems reports healthy 17% revenue growth ...
![](https://portfolio.investmentguruindia.com/uploads/news/stock28.jpg)
Nifty closes at all-time high, Sensex surges by 1,29...
More News
![](https://portfolio.investmentguruindia.com/uploads/news/nikhil gupta.jpg)
Perspective on GDP Data by Mr. Nikhil Gupta, Chief Economist, MOFSL Group
![Comment on RBI Monetary Policy by Mr Prashant Rao, Managing Director, Poulomi Estates, a Hyderabad based real estate developer](https://portfolio.investmentguruindia.com/uploads/news/RBI 101.jpg)
Comment on RBI Monetary Policy by Mr Prashant Rao, Managing Director, Poulomi Estates, a Hyderabad based real estate developer
Comment on USA GDP Data - 25 April 2024 by Dr. Vikas V. Gupta, CEO & Chief Investment Strategist, OmniScience Capital
![Comment on JLL Report : The value of residential sales in Mumbai is expected to cross INR 1 lakh crore in 2023 and go on to breach the INR 2 lakh crore mark in 2030 By Mr Ashwin Chadha, India Sotheby`s International Realty](https://portfolio.investmentguruindia.com/uploads/news/a4761b746a078fa0e5d53b61e623a05b.jpg)
Comment on JLL Report : The value of residential sales in Mumbai is expected to cross INR 1 lakh crore in 2023 and go on to bre...