India's state-run banks falter on potential bond losses, profit taking

Apr 03 2014, 17:23 IST
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State-controlled banks are the biggest buyers of government debt in markets. (Reuters) State-controlled banks are the biggest buyers of government debt in markets. (Reuters)
SummaryShares in Indian state-run banks fall after the 10-year yield's rise to 8.9952 percent, the highest level since Dec. 6, triggered worries on potential mark-to-market loss on their bond portfolios, dealers say.

Shares in Indian state-run banks fall after the 10-year yield's rise to 8.9952 percent, the highest level since Dec. 6, triggered worries on potential mark-to-market loss on their bond portfolios, dealers say.

State-controlled banks are the biggest buyers of government debt in markets, which means a drop in bond prices can lead to capital losses on their balance sheets.

Profit-taking also hit shares: State bank of India is down 2 percent, Punjab National Bank 2.5 percent and Bank of Baroda 1.9 percent.

Indian Stock market

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