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Banking stocks decline as RBI introduces incremental CRR

SBI, BOB, BOI, Oriental Bank, PNB and Union Bank of India were down more than 2% each on the NSE.

SI Reporter  |  Mumbai 

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters
Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters

Banking shares have slipped by up to 4% in intra-day trade after the Reserve Bank of India (RBI) introduced an incremental Cash Reserve Ratio (CRR) of 100% for the fortnight beginning Saturday.

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 index and 0.19% fall in the benchmark Nifty50. 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 of 100%, effective the fortnight beginning November 26, 2016,” 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 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 remains unchanged at 4% of outstanding net demand and time liabilities (NDTL), said. CLICK HERE TO READ FULL REPORT.

COMPANY LATEST PREV CLOSE LOSS(%)
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
ORIENTAL BANK 116.45 120.00 -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
PUNJAB NATL.BANK 136.70 140.30 -2.6
CORPORATION BANK 44.50 45.65 -2.5
FEDERAL BANK 69.00 70.65 -2.3
ICICI BANK 254.70 260.10 -2.1
UNION BANK (I) 150.00 153.05 -2.0
VIJAYA BANK 44.50 45.35 -1.9
CANARA BANK 304.75 310.50 -1.9
YES BANK 1146.45 1167.70 -1.8
INDIAN BANK 237.70 242.10 -1.8
PUN. & SIND BANK 49.00 49.90 -1.8
RBL BANK 344.80 351.10 -1.8
CITY UNION BANK 135.00 137.45 -1.8

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Banking stocks decline as RBI introduces incremental CRR

SBI, BOB, BOI, Oriental Bank, PNB and Union Bank of India were down more than 2% each on the NSE.

SBI, BOB, BOI, Oriental Bank, PNB and Union Bank of India were down more than 2% each on the NSE.
Banking shares have slipped by up to 4% in intra-day trade after the Reserve Bank of India (RBI) introduced an incremental Cash Reserve Ratio (CRR) of 100% for the fortnight beginning Saturday.

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 index and 0.19% fall in the benchmark Nifty50. 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 of 100%, effective the fortnight beginning November 26, 2016,” 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 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 remains unchanged at 4% of outstanding net demand and time liabilities (NDTL), said. CLICK HERE TO READ FULL REPORT.

COMPANY LATEST PREV CLOSE LOSS(%)
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
ORIENTAL BANK 116.45 120.00 -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
PUNJAB NATL.BANK 136.70 140.30 -2.6
CORPORATION BANK 44.50 45.65 -2.5
FEDERAL BANK 69.00 70.65 -2.3
ICICI BANK 254.70 260.10 -2.1
UNION BANK (I) 150.00 153.05 -2.0
VIJAYA BANK 44.50 45.35 -1.9
CANARA BANK 304.75 310.50 -1.9
YES BANK 1146.45 1167.70 -1.8
INDIAN BANK 237.70 242.10 -1.8
PUN. & SIND BANK 49.00 49.90 -1.8
RBL BANK 344.80 351.10 -1.8
CITY UNION BANK 135.00 137.45 -1.8

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Business Standard
177 22

Banking stocks decline as RBI introduces incremental CRR

SBI, BOB, BOI, Oriental Bank, PNB and Union Bank of India were down more than 2% each on the NSE.

Banking shares have slipped by up to 4% in intra-day trade after the Reserve Bank of India (RBI) introduced an incremental Cash Reserve Ratio (CRR) of 100% for the fortnight beginning Saturday.

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 index and 0.19% fall in the benchmark Nifty50. 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 of 100%, effective the fortnight beginning November 26, 2016,” 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 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 remains unchanged at 4% of outstanding net demand and time liabilities (NDTL), said. CLICK HERE TO READ FULL REPORT.

COMPANY LATEST PREV CLOSE LOSS(%)
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
ORIENTAL BANK 116.45 120.00 -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
PUNJAB NATL.BANK 136.70 140.30 -2.6
CORPORATION BANK 44.50 45.65 -2.5
FEDERAL BANK 69.00 70.65 -2.3
ICICI BANK 254.70 260.10 -2.1
UNION BANK (I) 150.00 153.05 -2.0
VIJAYA BANK 44.50 45.35 -1.9
CANARA BANK 304.75 310.50 -1.9
YES BANK 1146.45 1167.70 -1.8
INDIAN BANK 237.70 242.10 -1.8
PUN. & SIND BANK 49.00 49.90 -1.8
RBL BANK 344.80 351.10 -1.8
CITY UNION BANK 135.00 137.45 -1.8

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Business Standard
177 22

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