Every quarter, we need to see the portfolio and follow the accounting practice of mark-to-market that values investments according to the prevailing market prices and at the price at which they are made.

Mark-to-market losses are not real loss. It's a notional loss. What we can monitor is the credit quality of the underlying papers. Are the companies paying interest on time? Is there any deterioration in the credit quality of these companies?

We don't understand the equity market well, and so we deploy funds in fixed-income securities, and like any other securities, investment in those securities also need to follow the mark-to-market accounting principle.

Chanda Kochhar Quotes