India's revised bank investment norms seen boosting debt appetite, earnings

By: Admin

MUMBAI, Sept 13 (Reuters) - The Indian central bank's move to remove the cap on how much a bank can invest in bonds they intend to hold to maturity will boost lenders' appetite for government securities and benefit their bottom lines, bankers and analysts said on Wednesday.

The Reserve Bank of India (RBI) did away with the ceiling on the held-to-maturity (HTM) category of investments on Tuesday, as part of a broader rejig of classification and valuation norms. The new norms come to effect from April 1, 2024.