With benchmark yields rising by as much as 45 basis points in the March quarter, banks’ bond portfolios were hit by mark-to-market losses. The yield on the 10-year benchmark bond hit 7% last quarter, as crude oil prices surged, triggering fears of inflation. Curbs imposed by Reserve Bank of India (RBI) on net open forex positions of banks at $100 million also hurt treasury income as lenders unwound positions. Mark-to-Market Pain The other income for public sector banks fell 21% YoY to Rs 45,904 crore, marking the first decline in six quarters. Other income at State Bank of India (SBI) declined 29% owing to a treasury loss of around Rs 1,800 crore. Excluding that, non-interest income rose across every segment, SBI Chairman CS Setty said.