Banks urge RBI to extend HTM leeway beyond Mar 2023 as bond losses pile up

Commercial banks have requested the Reserve Bank of India (RBI) to extend dispensation on the held-to-maturity (HTM) portion of bond portfolios beyond March 2023 in a recent meeting, sources told Business Standard.
 

Bankers have sought permission to park a larger quantum of securities in the portfolio than is currently permitted amid an environment of rising bond yields.
 

“Banks wanted more HTM and greater clarity on whether there would be an extension of the timeline. This dispensation is until March 2023. What happens if a bank buys a bond after March 2023? It has to be marked-to-market (MTM) and becomes