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The Finance Ministry has reportedly sought details of public sector banks’ (PSBs) bond portfolios to assess potential ripple impact of the turmoil in the US banking sector.
This comes just ahead of a scheduled financial year-end review meeting the Finance Minister will hold with PSB chiefs on March 25th.
The Ministry will also assess the extent of asset-liability mismatches to avoid any surprises as US banks -- Silicon Valley Bank and Signature Bank got impacted due to such mismatches.
Precautionary exercise
According to a Reuters report, the Finance Ministry has asked banks to submit data about their held-to-maturity (HTM) portfolios and mark-to-market (MTM) losses in trading books to identify any potential stress.
The data collection process has been going on for the last few days and is more of a precautionary exercise because the government “does not want to be caught off-guard” if the crisis spirals further, the agency said quoting a banker.
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