Revised directions will be applicable to all commercial banks (excluding Regional Rural Banks) from April 1, 2024.
Banks will now be allowed to include securities acquired between September 1, 2020 and March 31, 2024 in the enhanced HTM limit.
The Reserve Bank of India (RBI) on clarified further on its earlier measure, aimed at reducing bank financial losses due to fall in bond yields.
BSE Bankex rallied more than 5 percent to 11041.46, continuing previous day's upmove as country's largest lender State Bank of India gained over 5 percent. Private sector lenders ICICI Bank, HDFC Bank and Axis Bank were up 3-6.5 percent.
Commercial paper and the certificates of deposit market pricing, which were earlier in the range of 8-9 percent, would certainly move beyond the cut-off in the RBI auction of short-term paper