Banks meet RBI to help cut losses from falling bond prices

Bankers have approached the Reserve Bank of India (RBI) to help them cut the losses on their bond portfolios, people privy to the developments told CNBC-TV18. In the third quarter of current fiscal, bond prices fell sharply after RBI changed its monetary policy stance. Bankers have requested RBI to allow them to shift their loss making bonds from their available for sale portfolio (AFS) to their held-to-maturity (HTM) list. Also some bonds from the HTM category swapped to AFS and held for trade category so that some of the losses are trimmed.RBI has given a sympathetic ear to the banks. It has made enquiries with them on the extend of fourth quarter losses that are expected.Watch video for more.