Reuters Market Eye - Book value or net worth of state-owned banks becomes more opaque after the Reserve Bank of India eases bond holding rules, says Morgan Stanley in a report on Tuesday.
Analysts say the RBI steps will make it hard to judge actual losses on bonds, loans and provisions in state-owned banks.
The RBI on Tuesday relaxed rules on mandatory bond holdings for banks, which would help protect lenders from large mark-to-market losses.
Morgan Stanley advises to reduce positions in state-owned bank stocks after the RBI steps. The Bank Nifty is off highs, up 0.3 percent after earlier rising as much as 5.93 percent following RBI measures.
(Reporting by Abhishek Vishnoi)
