4/2/2024, 4:23:02 pm

Banks seek relaxed norms for AT-1 bonds valuation

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.