In the era of the 21st Century, it is a great concept that Reserve Bank of India has started the selling of the bonds that are actually trading losses. This process is actually done to increase the profit-making of the lenders. In a way, this has also given a cushion to the stock market as a whole.
Through this change now it has been seen that the lenders are able to make up for their losses incurred in the process of the market breakdown that happened this year and last year as well. Even the banks that are actually funded by the state and are on a very bad note because of the loss-making loans they are having as liabilities are now being able to cope up with those losses. Also to help the banks from a sharp turn in their balance sheet The Reserve Bank of India has asked the state banks to put their profits in the form of bonds only and secure them from the effects of the current fiscal year.