AP’s Interest Rate Updates For Employee Benefits as on 30 September 2023

September 30, 2023

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Comments & Insights

Interest Rates Around the World

Momentary upward shift observed in the overall market trend. And as an impact slight increase in rates as on 30-09-2023 by an average of10 bps compared to 30-06-2023 is seen. When compared with 31-03-2023 rates, there is still an average decrease by 2 bps observed indicating the continuation of sentiments due to recession.

Comparison with 30-06-2023 Yield

As compared with 30-06-2023, rates have increased for each tenure with an average increase of 12 bps. However, the minimum increase is of 3 bps for tenure 26 and 28 years and maximum of 27 bps for tenure 3 year.

Impact on Obligation

Increase in yield will lead to a decrease in Obligation leading to gains due to change in Financial Assumptions as compared to previous quarter, if all other Assumptions remain the same.

Impact on Asset

Decrease in Fair Value of Plan Asset wherever company needs to perform MTM valuation.

Insights

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Our Insights blend analytical rigor with strategic foresight, helping businesses navigate uncertainty with confidence. By quantifying risk and modeling future outcomes, it empowers smarter decisions, sustainable growth, and long-term value creation.

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Volatility in the Interest Rate March 2017 v/s June 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term as prevalent at the end of the reporting period.

Topic to be covered: Volatility in the Interest Rate March 2017 v/s September 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term asprevalent at the end of the reporting period.

KAP’s Interest Rate Updates For Employee Benefits as on 30th June 2025

Summary of G-sec rates and par yields for employee benefits as of 30th June 2025.

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