In the reporting quarter, the bank reported Rs 753 crore as treasury income.
More time to comply with PSL requirements takes away the immediate burden from the bank. Similarly, clarity on holdings in investments and subsidiaries will clear air for investors.
Economists say the key takeaway from the RBI monetary policy would be the inflation target by Governor Rajan.
These comments have come at a time when there is growing speculation that RBI's role in public debt management will be given to a professional agency. Gandhi also said the RBI's move to gradually reduce the Statutory Liquidity Ratio (SLR), or the amount of government bond holdings for banks, will also be beneficial to the corporate debt market.
Market-linked investments like Gilt Funds, Income Funds, NCDs etc share an inverse relationship with the interest rates. So a rise or cut of interest rates by RBI impacts their performance. Financial expert Shiv Kukreja enlightens on RBI monetary policy measures and its impact on fixed income investments.