At least four major State-owned banks have increased their internal limits for investing in government bonds following discussions with the Reserve Bank of India last month, according to five treasury officials aware of the decisions.

Bank of Baroda, Punjab National Bank, Canara Bank and Union Bank of India — among the top five government-owned lenders by assets — have raised their investment caps by 5 to 20 percentage points, the sources said.

“Most of the top five-six banks barring one have raised the internal cap that they had set for taking exposure to state debt in treasury books after a round of consultations and meetings with the central bank,” one of the officials said.

The sources requested anonymity as they are not authorised to speak to media. The banks did not respond to ema

See Full Page