Mumbai: The Reserve Bank of India has often exhorted banks to utilise the domestic derivatives infrastructure to mitigate risk from their government bond positions. The largest bondholders in the banking pack are taking heed.
The establishment of a derivatives trading platform by the Clearing Corporation of India (CCIL) in 2015 has played a large role in bringing hitherto reluctant public sector banks into the trading fold for derivatives. A broad push towards defter management of interest rate risk too contributed.
