During the quarter ending March 2026, both G-Sec and SGS holdings in the HTM book exhibited unrealised losses
FinTech BizNews Service
Mumbai, July 3, 2026: All bank groups incurred losses on securities trading in the quarter ending March 2026. For PSBs and PVBs, profits from securities trading declined steadily over the preceding three quarters, before turning negative in March 2026. Foreign Banks, on the other hand, have recorded trading losses for four consecutive quarters.
In the HTM portfolio, both PSBs and PVBs continued to increase their holding of state government securities (SGS) while paring their holdings in central government securities (G-Sec) and other HTM-eligible securities. FBs continued to increase the share of other securities in their HTM portfolio. During the quarter ending March 2026, both G-Sec and SGS holdings in the HTM book exhibited unrealised losses. If a shock of 250 bps parallel upward shift in the yield curve is applied, the MTM impact on the HTM portfolio of banks would result in additional unrealised loss in the HTM book by 10.5 per cent of the HTM portfolio size (book value).
