PSBs' share in 'fair value' investments declines, private banks report gains

STATE-OWNED BANKS' SHARE in the 'fair value through profit and loss investment portfolio' (FVPTL), the newly-introduced investment category, has gone down to 37.2% from around 45%. Meanwhile, the share of private banks has risen to nearly one-third, according to the Reserve Bank of India's (RBI) latest Financial Stability Report.

- ANUPREKSHA JAIN

The RBI introduced the new investment category, FVTPL, in April 2024. As per the revised norms, banks are required to classify their entire investment portfolio into three categories - held to maturity (HTM), available for sale (AFS), and FVTPL. The old category, held for trading, has now become a sub-category of FVTPL.