Bank stocks reverse losses after RBI cuts repo rate by 50 basis points

Sixteen bank stocks rose by 0.01% to 2.35% at 11:30 IST on BSE after the central bank reduced the policy repo rate under the liquidity adjustment facility by 50 basis points from 7.25% to 6.75% after a policy meet today, 29 September 2015.

The Reserve Bank of India (RBI) announced fourth bi-monthly monetary policy statement during market hours today, 29 September 2015.

Meanwhile, the S&P BSE Sensex was down 24.21 points, or 0.09%, to 25,592.63.

Among public sector banks, UCO Bank (up 2.35%), Syndicate Bank (up 1.09%), Punjab National Bank (up 0.7%), Corporation Bank (up 1.02%), Allahabad Bank (up 1.17%), Bank of Baroda (up 1.58%), State Bank of India (SBI) (up 0.56%), Union Bank of India (up 1.81%), Canara Bank (up 2.07%), Bank of India (up 0.85%) and United Bank of India (up 0.22%) edged higher.

Among private sector banks, HDFC Bank (up 0.04%), Kotak Mahindra Bank (up 0.01%), Federal Bank (up 0.62%), Yes Bank (up 1.2%), and IndusInd Bank (up 0.22%) edged higher. Axis Bank (down 0.24%) and ICICI Bank (down 0.41%) declined.

The BSE Bankex index had outperformed the market over the past one month till 28 September 2015, falling 0.56% compared with 2.94% fall in the Sensex. The index had also outperformed the market in past one quarter, dropping 6.96% as against Sensex's 7.89% fall.

The RBI has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL).

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