Banks jump as RBI keeps rates unchanged

Shares of 14 banks rose by 2.17% to 5.55% at 11:13 IST on BSE after the Reserve Bank of India left key interest rates unchanged at mid-quarter monetary policy review today, 18 December 2013.

Canara Bank (up 5.55%), Bank of India (up 4.13%), Union Bank of India (up 4.08%), Punjab National Bank (up 3.69%), IndusInd Bank (up 3.56%), Axis Bank (up 3.35%), Bank of Baroda (up 3.3%), Yes Bank (up 3.28%), HDFC Bank (up 3.14%), State Bank of India (up 3.06%), ICICI Bank (up 2.89%), IDBI Bank (up 2.7%), Kotak Mahindra Bank (up 2.65%) and Federal Bank (up 2.17%), edged higher.

The S&P BSE Bankex was up 2.23% at 13,083. It outperformed the S&P BSE Sensex, which was up 1.12% at 20,843.52.

The Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75%. The cash reserve ratio (CRR) of scheduled banks was also left unchanged at 4% of net demand and time liability (NDTL).

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 8.75%.

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