Banking shares are trading mixed after the Reserve Bank of India (RBI) kept a key policy rates unchanged.
Bank of Baroda, Axis Bank, Canara Bank, Bank of India and YES Bank are up between 1-2%, while Kotak Mahindra Bank, ICICI Bank, Federal Bank and IndusInd Bank are down marginally by up to 1% on the National Stock Exchange (NSE).
AT 1115 hours, the NSE banking share index Bank Nifty is down 0.10% compared to 0.07% decline in benchmark CNX Nifty. The public sector undertaking (PSU) bank index CNX PSU Bank is however, up 0.18%.
The RBI in its first bi-monthly monetary policy has decided to hold the key policy rate or the repo rate at 8% but cautioned that inflation risks could resurface.
At the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy, RBI said a statement.
Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, it added.
Bank of Baroda, Axis Bank, Canara Bank, Bank of India and YES Bank are up between 1-2%, while Kotak Mahindra Bank, ICICI Bank, Federal Bank and IndusInd Bank are down marginally by up to 1% on the National Stock Exchange (NSE).
AT 1115 hours, the NSE banking share index Bank Nifty is down 0.10% compared to 0.07% decline in benchmark CNX Nifty. The public sector undertaking (PSU) bank index CNX PSU Bank is however, up 0.18%.
The RBI in its first bi-monthly monetary policy has decided to hold the key policy rate or the repo rate at 8% but cautioned that inflation risks could resurface.
At the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy, RBI said a statement.
Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, it added.