Rising US bond yields are creating fresh concerns for Indian markets. However, for Indian banks, the impact is likely to remain mixed. Brokerages and analysts believe that some lenders may benefit from higher lending rates while others could face pressure from rising funding costs and weaker treasury income. Deven R Choksey, Founder and Managing Director of DRChoksey FinServ believes that the Indian banking system can live with 5% US yields. “Bank stock prices will stay restless until those yields stop making new highs.”