HDFC Bank exec says RBI MPC disagreement is no reason to flee market

One of the largest banks in India believes investors can safely hold onto their sovereign debt as yields aren’t poised to rise soon, even with some policy makers starting to talk about tightening.

Investors shouldn’t worry about surprise losses and can keep their positions for now, as record low rates and an abundance of cash should help eke out more profit in coming quarters, Ashish Parthasarathy, treasurer at HDFC Bank Ltd., the country’s biggest lender by market value, said in an interview.

The veteran banker is staying bullish even after a schism appeared among Reserve Bank of India members last