Kotak Mahindra Bank not to transfer SLR security to HTM

Reserve Bank of India, vide its circular dated August 23, 2013 had, as a onetime measure, permitted banks to transfer SLR securities from AFS/HFT to HTM category during the current year up to the limit of 24.50 per cent of NDTL. To mitigate impact of mark to market losses incurred by Banks due to abnormal market conditions, the said circular also gave banks the option of valuing these securities for the purpose of such transfer, as at the close of business of July 15, 2013. Such transfers were to be done no later than September 30, 2013.

Kotak Mahindra Bank has decided not to transfer any SLR security from AFS/ HFT to HTM as permitted under said circular though there is sufficient headroom to do so.

Shares of Kotak Mahindra Bank Ltd last traded in BSE at Rs.677.40, down by Rs.4.90 or 0.72%. The stock hit an intraday high of Rs.689 and low of Rs.669.

The total traded quantity was 0.40 lakhs compared to 2 week average of 0.88 lakhs.

Source : Equity Bulls

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