Bank shares were mixed at 11:30 IST on BSE after the Reserve Bank of India kept key rates unchanged in its monetary policy review today, 1 December 2015.
Among state-run banks, Bank of Baroda (down 1%), Bank of Maharashtra (down 0.76%), Canara Bank (down 0.62%), Bank of India (down 0.53%), UCO Bank (down 0.52%), Punjab and Sind Bank (down 0.5%), Punjab National Bank (down 0.45%), Union Bank of India (down 0.38%), Dena Bank (down 0.36%), Allahabad Bank (down 0.13%), Syndicate Bank (down 0.1%), Indian Bank (down 0.08%), Central Bank of India (down 0.07%) and State Bank of India (down 0.04%), edged lower. IDBI Bank (up 0.11%), Vijaya Bank (up 0.29%) and Corporation Bank (up 0.47%), edged higher.
Among private sector banks, City Union Bank (up 0.64%), IndusInd Bank (up 0.57%), ICICI Bank (up 0.29%) and HDFC Bank (up 0.07%), edged higher. Kotak Mahindra Bank (down 0.16%), Yes Bank (down 0.33%) and Axis Bank (down 0.82%), edged lower.
The BSE Bankex was up 0.03% at 19,922.75. It underperformed the Sensex, which was up 0.11% at 26,173.33.
The Reserve Bank of India (RBI) in its fifth bi-monthly monetary policy review today, 1 December 2015, kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75%. Consequently, the reverse repo rate under the LAF will remain unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75%.
RBI kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL).
RBI said it will continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75% of NDTL of the banking system through auctions. RBI added that it will continue with daily variable rate repos and reverse repos to smooth liquidity.
The sixth bi-monthly monetary policy statement will be announced on Tuesday, 2 February 2016, RBI said in a statement.
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