Rising bond yields may cut banks' treasury income
In short
Banks are expected to post nearly 60% less treasury income in the July-September quarter. The estimate in the report says gains may fall from ₹13,100 crore last year to ₹5,500 crore this year.
This matters because higher government bond yields have hurt bank portfolios, especially at public sector banks with bigger government securities holdings. The reporting does not say which banks will be hurt most or whether the losses are already final.
What the reporting says
Banks are expected to report a nearly 60% drop in treasury income for the July-September quarter, with analyst estimates cited as falling from ₹13,100 crore last year to ₹5,500 crore this year. The reporting says rising government bond yields have hurt investment portfolios, and public sector banks are likely to be hit more because they hold larger government securities books. The final quarterly results and the full sector impact are not stated.
Why it matters
Banks are expected to report a sharp fall in treasury income for the July-September quarter, with analyst estimates quoted at ₹5,500 crore versus ₹13,100 crore a year earlier. The source links the decline to rising government bond yields that reduced portfolio gains, and says public sector banks should feel the biggest effect because of larger government securities holdings. Final results are not yet stated.