State Bank of India (SBI), Bank of Baroda, Bank of India, Oriental Bank of Commerce, Punjab National Bank and Union Bank of India from state-owned banks were down more than 2% each, while Federal Bank, ICICI Bank, Axis Bank and YES Bank from the private sector were down between 1% and 2% on the National Stock Exchange (NSE).
At 09:39 am; Nifty PSU Bank index was down 2.6%, as compared to 1.45 declined in Nifty Bank index and 0.19% fall in the benchmark Nifty50. CRR is the portion of the deposits which banks are required to park to the RBI. Currently it is at 4%.
“On the increase in NDTL (net demand and time liabilities) between September 16, 2016 and November 11, 2016, scheduled banks shall maintain an incremental CRR of 100%, effective the fortnight beginning November 26, 2016,” RBI said in a press release.
This is intended to absorb a part of the surplus liquidity arising from the return of SBNs to the banking system, while leaving adequate liquidity with banks to meet the credit needs of the productive sectors of the economy.
As the incremental CRR is intended to be a temporary measure within the Reserve Bank’s liquidity management framework to drain excess liquidity in the system, it shall be reviewed on December 9, 2016 or even earlier, it added.
The CRR remains unchanged at 4% of outstanding net demand and time liabilities (NDTL), RBI said. CLICK HERE TO READ FULL REPORT.
|BANK OF BARODA||162.00||167.90||-3.5|
|LAK. VILAS BANK||143.50||148.30||-3.2|
|BANK OF INDIA||117.75||121.40||-3.0|
|S B T||545.55||562.10||-2.9|
|ST BK OF BIKANER||693.70||714.65||-2.9|
|ST BK OF INDIA||253.85||260.95||-2.7|
|ST BK OF MYSORE||546.50||561.00||-2.6|
|UNION BANK (I)||150.00||153.05||-2.0|
|PUN. & SIND BANK||49.00||49.90||-1.8|
|CITY UNION BANK||135.00||137.45||-1.8|