Banks slide after RBI keeps interest rates unchanged

Punjab National Bank (down 1.90%), Canara Bank (down 1.84%), Bank of India (down 1.81%), Axis Bank (down 1.73%), State Bank of India (down 1.72%), IndusInd Bank (down 1.50%), Union Bank of India (down 1.46%), ICICI Bank (down 1.38%), Bank of Baroda (down 1.33%), Yes Bank (down 1.12%), Kotak Mahindra Bank (down 1.09%), IDBI Bank (down 0.98%), HDFC Bank (down 0.79%) and Federal Bank (down 0.16%), edged lower.

The S&P BSE Bankex was down 1.30% at 13,447.72. It underperformed the S&P BSE Sensex, which was down 0.37% at 19,106.06.

The Reserve Bank of India (RBI) kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of their net demand and time liabilities. It kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25%.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25%.

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