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Bank Nifty hits record high as RBI cuts repo rate by 25bps to 7.75%

SBI, ICICI Bank, Kotak Mahindra Bank, Yes Bank, Allahabad Bank and BOB are up between 3-6% on NSE.

SI Reporter  |  Mumbai 

Banking shares have rallied by up to 6% on National Stock Exchange (NSE) in early morning trade after the Reserve Bank of India (RBI) Governor Raghuram Rajan unexpectedly cut the benchmark repurchase rate by 25 basis points to 7.75% from 8%.

Bank Nifty, the banking share index, was up 4.2% or 789 points at 19,393 at 0916 hours. The index hit a record high of 19,410. The benchmark CNX Nifty was up 1.4% at 8,394 points.

State Bank of India (SBI), ICICI Bank, Kotak Mahindra Bank, Yes Bank, Allahabad Bank, Bank of Baroda, Indian Overseas Bank, Syndicate Bank, Canara Bank, Punjab National Bank and Bank of India are up between 3-6% on NSE.

“The RBI has reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0% to 7.75% with immediate effect,” RBI said in a statement.

The cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL), it added.

First Published: Thu, January 15 2015. 09:21 IST