Banking stocks fall after RBI moves to tighten liquidity
MUMBAI (Reuters) - Shares of banks fell on Wednesday after the Reserve Bank of India (RBI) announced fresh measures to drain cash, making access to short-term funds harder.
Yes Bank Ltd dropped 8.28 percent, while IndusInd Bank Ltd fell 7.77 percent.
The RBI on Tuesday lowered the overall limit for borrowing under the daily liquidity adjustment facility (LAF), which offers funds in exchange for collateral, for each bank to 0.5 percent of deposits from 1 percent.
The NSE banking index was down 4.38 percent.
(Reporting by Himank Sharma; Editing by Anand Basu)