Yield surge erodes bank profits in Q1, SBI's the worst hit
After ending at 6.80% in March, the benchmark bond yield had touched a high of 7.50% in June, the highest in more than three years on fears that rising inflation will force the Reserve Bank of India (RBI) to hike rates. It has since eased to end Monday at 7.35%. Banks have to compulsorily invest 18% of their deposits into government bonds known as statutory liquidity ratio (SLR).