Bank stocks fall up to 4% after RBI repo rate cut

Banking stocks declined up to 4% on Wednesday despite the Reserve Bank of India(RBI) reducing the repo rate by 25 basis points to 6% and shifting its monetary policy stance from 'neutral' to 'accommodative.'

New Update
Bank stocks fall up to 4% after RBI repo rate cut

Banking stocks declined up to 4% on Wednesday despite the Reserve Bank of India(RBI) reducing the repo rate by 25 basis points to 6% and shifting its monetary policy stance from 'neutral' to 'accommodative.'

Public sector banks were among the top losers, with Bank of India, Union Bank of India, Indian Bank, and Bank of Baroda falling nearly 4%. Canara Bank, Punjab National Bank, and State Bank of India also dropped between 1.5% and 2%.

Among private banks, Bandhan Bank, RBL Bank, YES Bank, and ICICI Bank slipped between 1% and 3.5%.

While rate cuts are generally seen as positive for the sector, analysts flagged concerns over near-term margin pressure and slower benefit transmission.

 

Advertisment
Latest Stories