Banks flag concerns on rupee, floating rate bonds ahead of RBI policy

Interactions with senior officials from RBI gave feedback on 2 concerns, one is the recent volatality in the rupee dollar exchange rate and heavy losses incured on floating charge goverment bonds due to demand supply mismatch .In the past years banks have bought bonds at low interest rates .In the previous quarter  , bank suffered huge losses on their debt .inorder to this there were couple of discussion arises one is purely operational and about demand supply concerns in market. next one is the market is asked about the broad concerns of the moment .during the last 5 months ,the floating rate bond by government has increased by more than 3 rupees which leads to heavy market to market losses on bond portfolios