The impact of this portfolio balancing will not only alter the value of the yuan against the dollar, but it will also likely change the value of the dollar against the other major currencies of the world.

FORBES: What China's New Currency Basket Means

The purpose is to reduce the risk of a large portfolio loss by balancing portfolio risk among different investment types.

FORBES: Choices in Portfolio Rebalancing

"Kamath's done a great job of managing such a diversified portfolio and balancing the risks, " acknowledges Uday Kotak of rival Kotak Mahindra Bank.

FORBES: Magazine Article