Bank stocks decline as RBI holds key policy rates steady

Eight bank stocks lost 0.17% to 1.29% at 11:25 IST on BSE after Reserve Bank of India in its fourth bi-monthly monetary policy review today, 30 September 2014, kept key policy rates unchanged.

Axis Bank (down 1.29%), Yes Bank (down 0.63%), Canara Bank (down 0.55%), Bank of India (down 0.62%), ICICI Bank (down 0.26%), IndusInd Bank (down 0.13%), Bank of Baroda (down 0.38%), and State Bank of India (down 0.17%) declined.

Kotak Mahindra Bank (up 1.69%), Punjab National Bank (up 0.18%), and HDFC Bank (up 0.38%) edged higher.

Meanwhile, the S&P BSE Sensex was down 10.66 points or 0.04% at 26,607.77.

The S&P bankex index had underperformed the market over the past one month till 29 September 2014, sliding 1.7% compared with Sensex's 0.15% fall. The index had also underperformed the market in past one quarter, jumping 3% as against Sensex's 5.96% rise.

The Reserve Bank of India (RBI) in its fourth bi-monthly monetary policy review today, 30 September 2014, kept repo rate under the liquidity adjustment facility (LAF) unchanged at 8%. The cash reserve ratio (CRR) was kept unchanged at 4% of net demand and time liabilities (NDTL). The reverse repo rate under LAF will remain unchanged at 7%, and the marginal standing facility (MSF) rate and the bank rate at 9%.

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