Business Standard

Banking shares dip post RBI policy

SBI, ICICI Bank, Union Bank of India and Canara Bank are trading lower by more than 2% each on the Bombay Stock Exchange.

Related News

Banking shares are under pressure after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio (CRR) unchanged in its mid-quarter monetary policy review today.

State Bank of India, ICICI Bank, Union Bank of India and Canara Bank are trading lower by more than 2% each on the Bombay Stock Exchange. 

The banking index Bankex, the largest loser among sectoral indices, is down almost 2% compared to less than 0.50% fall in benchmark Sensex at 1105 hours.

“On the basis of the current macroeconomic assessment, it has been decided to keep the CRR of scheduled banks unchanged at 4.25% their net demand and time liabilities (NDTL) and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0%,” RBI said in a release.

CRR is the proportion of total deposits a bank has to keep with RBI as cash. Most of the analyst expected the central bank will cut the CRR by 25 bps points.

“Overall, recent inflation patterns and projections provide a basis for reinforcing our October guidance about policy easing in the fourth quarter. However, risks to inflation remain and accordingly, even as the policy emphasis shifts towards growth, the policy stance will remain sensitive to these risks,” the central bank said.

Meanwhile, BofA Merrill Lynch expects the RBI to resume cutting rates only from January – 75 bps till July - once inflation peaks off to 7% levels in the March quarter. India is the only BRIC (Brazil, Russia, India and China) where lending rates are almost at their 2008 peak.

Read more on:   
|
|

Banking shares dip post RBI policy

SBI, ICICI Bank, Union Bank of India and Canara Bank are trading lower by more than 2% each on the Bombay Stock Exchange.

Banking shares are under pressure after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio (CRR) unchanged in its mid-quarter monetary policy review today.

Banking shares are under pressure after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio (CRR) unchanged in its mid-quarter monetary policy review today.

State Bank of India, ICICI Bank, Union Bank of India and Canara Bank are trading lower by more than 2% each on the Bombay Stock Exchange. 

The banking index Bankex, the largest loser among sectoral indices, is down almost 2% compared to less than 0.50% fall in benchmark Sensex at 1105 hours.

“On the basis of the current macroeconomic assessment, it has been decided to keep the CRR of scheduled banks unchanged at 4.25% their net demand and time liabilities (NDTL) and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0%,” RBI said in a release.

CRR is the proportion of total deposits a bank has to keep with RBI as cash. Most of the analyst expected the central bank will cut the CRR by 25 bps points.

“Overall, recent inflation patterns and projections provide a basis for reinforcing our October guidance about policy easing in the fourth quarter. However, risks to inflation remain and accordingly, even as the policy emphasis shifts towards growth, the policy stance will remain sensitive to these risks,” the central bank said.

Meanwhile, BofA Merrill Lynch expects the RBI to resume cutting rates only from January – 75 bps till July - once inflation peaks off to 7% levels in the March quarter. India is the only BRIC (Brazil, Russia, India and China) where lending rates are almost at their 2008 peak.

image

Read More

Two entities fail to make prima facie case to revoke ban: Sebi

The Securities and Exchange Board of India (Sebi) today said the restraining order on two entities, related to plunge in some mid-cap stocks in July, ...

Recommended for you

Advertisements

Quick Links

Market News

Maruti Suzuki falls on weak sales in March

The stock was down 2% at Rs 3,622, falling 4% from its intra-day high of Rs 3,758 on the National Stock Exchange.

Mentha oil rises by 1.6% on rising demand

Traders created fresh positions, driven by pick up in demand from consuming industries

Crude palm oil rises by 0.5% as demand picks up

Speculators indulged in creating fresh positions supported by pick up in demand in the spot market

Cardamom rises by 1.4% on spot demand

Speculators indulged in enlarging positions amid restricted arrivals

BEML hits 52-week high on executing export order to Zimbabwe

The stock up 4% at Rs 1,137 on the NSE after company said it has executed export order worth of Rs 70 crore to Zimbabwe.

 

Back to Top