State-run banks facing huge losses on bond holdings

PNB fraud case has already bruised the Indian State-run banks, while it has come out that the banks are facing huge losses on their bond holdings too, according to Brokerage firm Credit Suisse. The state-run banks have a chance to lose $3.1 billion in the January- March quarter. New Delhi has a recapitalization plan of $14 billion and the rising bond losses will add to concerns about the adequacy of that plan.