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.
RBI’s sell-buy swaps slow rupee’s fall but push up forward premiums, making hedging costlier for foreign investors
The Reserve Bank of India is engaged in dollar sell-buy swaps to stabilize the rupee’s value. However, this has resulted in higher forward premiums, making