Banks held 64.6 percent of their investments in the HTM category, which is not subject to mark-to-market valuation, the report has said
Earlier in the day, Canara Bank reported an 18.4 percent rise in its net profit at Rs 3,757.23 crore in the fourth quarter
However, some non-SLR portfolios may see a rise in MTM losses as spread on these instruments has widened by 5-7 bps, they said.
It is inevitable that a company which is facing pressure would come under further pressure but that is subject to at some stage banks pass this on or slowdown saying there is no liquidity. So if the yields continue to remain high for more than few weeks, there will be more stress in the system