Bank shares fall on RBI panel report

Reuters Market Eye - Bank shares <.NSEBANK> fall 1.2 percent after a Reserve Bank of India (RBI) panel recommended a slew of measures, including potentially changing how lending rates are set for the sector, raising worries about overall profitability.

For the RBI report, click http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30984

"Banks will have reservations against some of these recommendations of the panel as this could affect their margin management and thus overall profitability," an analyst tracking the sector said.

ICICI Bank is down 1.4 percent while State Bank of India is down 1.3 percent.

(Reporting by Abhishek Vishnoi)