MUMBAI, April 2 Reserve Bank of India Deputy
Governor H R Khan clarified that only the time limit for
spreading bond losses held under banks' mark-to-market
portfolios had lapsed on March 31, and not the waiver on
bringing down the ratio of debt under the held-to-maturity
Earlier in the day, Khan had created confusion in markets
after he was asked by an analyst during a teleconference about a
temporary waiver from a rule that banks bring down the ratio of
debt under the held-to-maturity (HTM) category to 23 percent.
He had responded by saying the waiver had lapsed, and
traders had believed the remark meant that banks would need to
cut down their ratio of debt under the HTM category to 23
However, he later told Reuters his answer had been about
another rule mandating banks spread bond losses under their
mark-to-market portfolio by March 31.
"SLR (statutory liquidity ratio) position remains as it is
pending further review," Khan told Reuters.
The RBI had in August provided a temporary relief to banks
from a rule mandating they cut their HTM portfolio gradually and
had also allowed lenders to spread their MTM losses in their
trading books over three quarters in equal instalments.
(Reporting by Suvashree Dey Choudhury and Neha Dasgupta)