No investment depreciation loss coming for state owned banks: Karvy Stock Broking

Rakesh Kumar, Analyst, Karvy Stock Broking

What is your sense looking at the current bond yields? Are you expecting a lot of treasury losses to bear down on bank earnings growth going forward for the next few quarters?

Actually like we ended the March quarter at 7.85 and right now if you look at 7.8, 2020 bond, which is a benchmark 10-year bond, it is at 7.37%, 7.40% and by the end of first quarter, I do not think there would be any kind of bond yield moving up so much so high that like beyond 7.85% or so, so for this first quarter, I do not think there would be any kind of investment depreciation loss coming for the state owned banks.