Banks seek relaxed norms for AT-1 bonds valuation
Sun, Feb 4, 2024 4:23 PM

Banks seek relaxed norms for AT-1 bonds valuation

A Flip by Shubhangi Gupta
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Indian banks have requested for relaxed norms in valuing additional tier-1 bonds due to difficulty in raising funds after stricter valuation rules were introduced following Yes Bank crisis. The current 100-year valuation creates pricing volatility, and banks have suggested using yield-to-call option or market traded price instead. These bonds have no maturity date and can be written off by banks.

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