Banks are awaiting signals from the Reserve Bank of India to check the losses owing to a surge in the bond yields, Union Bank of India chairman Debabrata Sarkar today said. Banks invest in government securities both for treasury operations and to fulfil their statutory liquidity requirement mandated by the central bank. Yields on bonds are inversely related to their prices, which imply that lower prices will result in a reduction in the value of bond holdings. Sarkar expressed hope that the RBI might come up with some solution...........
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