Surging bond yields likely to slash banks' treasury income
Banks are expected to report a nearly 60% decline in treasury income for the July-September quarter. Analysts predict treasury gains to decrease from ₹13,100 crore last year to ₹5,500 crore this year. Rising government bond yields have negatively impacted investment portfolios, leading to lower gains. Public sector banks will feel a more pronounced effect due to...
Key Takeaways
- Banks are expected to report a nearly 60% decline in treasury income for the July-September quarter.
- Analysts predict treasury gains to decrease from ₹13,100 crore last year to ₹5,500 crore this year.
- Rising government bond yields have negatively impacted investment portfolios, leading to lower gains.
Banks are expected to report a nearly 60% decline in treasury income for the July-September quarter. Analysts predict treasury gains to decrease from ₹13,100 crore last year to ₹5,500 crore this year. Rising government bond yields have negatively impacted investment portfolios, leading to lower gains. Public sector banks will feel a more pronounced effect due to their larger government securities portfolios.
Original Publisher Attribution
This summary was curated from Economic Times.