Bank shares erase early gains as RBI keeps repo rate unchanged
PNB, Federal Bank, BOB and YES Bank were down 2% to 4% from intra-day highs
 "Bank shares erase early gains as RBI keeps repo rate unchanged")
Bank shares have fallen up to 4% from their respective intra-day highs after the Reserve Bank of India (RBI) kept repo rate unchanged at 6.25% against market expectation of 25 basis points cut.
Punjab National Bank (PNB), Federal Bank, Bank of Baroda (BOB), Dhanlaxmi Bank, Indian Bank, Oriental Bank of Commerce, Bank of India, YES Bank, ICICI Bank, Andhra Bank, State Bank of India (SBI) and HDFC Bank were down between 2% and 4% from their intra-day highs on National Stock Exchange (NSE).
At 2:53 pm; Nifty PSU Bank index and Nifty Bank index were down 1% each, as compared to 0.48% decline in the Nifty50 index. Nifty PSU Bank index was down 2.6%, while Nifty Bank index down 1.9% from their respective intra-day highs.
Punjab National Bank (PNB), Federal Bank, Bank of Baroda (BOB), Dhanlaxmi Bank, Indian Bank, Oriental Bank of Commerce, Bank of India, YES Bank, ICICI Bank, Andhra Bank, State Bank of India (SBI) and HDFC Bank were down between 2% and 4% from their intra-day highs on National Stock Exchange (NSE).
At 2:53 pm; Nifty PSU Bank index and Nifty Bank index were down 1% each, as compared to 0.48% decline in the Nifty50 index. Nifty PSU Bank index was down 2.6%, while Nifty Bank index down 1.9% from their respective intra-day highs.
Meanwhile, the RBI withdraws the incremental cash reserve ratio (CRR).
“With the enhancement in the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion, it has been decided to withdraw the incremental CRR effective the fortnight beginning December 10, 2016,” RBI said in a press release.
The liquidity released by the discontinuation of the incremental CRR would be absorbed by a mix of MSS issuances and liquidity adjustment facility (LAF) operations, it added. CLICK HERE TO READ FULL POLICY
“With the enhancement in the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion, it has been decided to withdraw the incremental CRR effective the fortnight beginning December 10, 2016,” RBI said in a press release.
The liquidity released by the discontinuation of the incremental CRR would be absorbed by a mix of MSS issuances and liquidity adjustment facility (LAF) operations, it added. CLICK HERE TO READ FULL POLICY
| BANK | DAY'S HIGH(RS) | DAY'S LOW(RS) | LATEST(RS) | FALL(%) |
| FEDERAL BANK | 72.45 | 68.50 | 69.45 | -4.14 |
| BANK OF BARODA | 164.60 | 157.10 | 158.05 | -3.98 |
| PUNJAB NATL.BANK | 136.00 | 128.65 | 131.70 | -3.16 |
| DHANLAXMI BANK | 24.70 | 23.90 | 23.95 | -3.04 |
| ORIENTAL BANK | 120.45 | 115.75 | 116.95 | -2.91 |
| ANDHRA BANK | 52.25 | 50.50 | 50.75 | -2.87 |
| BANK OF INDIA | 118.10 | 113.55 | 114.80 | -2.79 |
| DCB BANK | 109.25 | 105.60 | 106.30 | -2.70 |
| J & K BANK | 61.50 | 59.45 | 59.85 | -2.68 |
| ST BK OF BIKANER | 720.00 | 690.00 | 701.00 | -2.64 |
| S B T | 566.45 | 542.60 | 551.50 | -2.64 |
| INDIAN BANK | 247.90 | 237.35 | 241.40 | -2.62 |
| ST BK OF MYSORE | 566.00 | 543.95 | 551.45 | -2.57 |
| I O B | 25.40 | 24.70 | 24.75 | -2.56 |
| ST BK OF INDIA | 262.75 | 251.65 | 256.05 | -2.55 |
| ALLAHABAD BANK | 69.10 | 66.55 | 67.35 | -2.53 |
| KARNATAKA BANK | 108.95 | 104.30 | 106.20 | -2.52 |
| CANARA BANK | 316.90 | 304.25 | 309.25 | -2.41 |
| IDFC BANK | 66.70 | 64.95 | 65.10 | -2.40 |
| CORPORATION BANK | 45.80 | 44.25 | 44.70 | -2.40 |
| Nifty50 | 8190.45 | 8077.50 | 8105.00 | -1.0 |
| Nifty PSU Bank | 3201.15 | 3069.20 | 3117.65 | -2.6 |
| Nifty Bank | 18588.75 | 17952.60 | 18237.80 | -1.9 |