Rising bond yields, in view of depreciating rupee, is a matter of concern and it "would impact margins", D. Sarkar, Chairman and Managing Director of Union Bank of India, said here on Monday.
Bond yields have reached an all time high of nearly 9 per cent.
According to Sarkar, a modest impact of rising bond yields, that is, mark to market losses, is set to be to the tune of nearly Rs 40,000 crore, across the industry.
"I will take a call on my mark-to-market losses (Union Bank's) on September 30. Right now it's a volatile situation and the figure of mark-to-market losses keep fluctuating. But it will impact the overall margins," Sarkar said on the sidelines of the FICCI Banking Conclave.
Union Bank, Sarkar said, was looking at intervention from the Reserve Bank of India to stem the impact on account of rise in bond yields.
He was hoping that the central bank would allow provisions for deferment of the mark-to-market losses.
"The RBI is taking the view of various banks. We have apprised it of the situation. So the RBI can give us a one time chance...," he said.