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 their larger government securities portfolios.