Banking stocks crash on RBI's cash control measures
Shares of both private and public banks crashed on Monday as Reserve Bank of India (RBI) over the weekend announced 100% CRR on deposits of about Rs 3 lakh crore.
On November 29, RBI stated that it plans to occupy the excess liquidity in the Indian banks by applying an incremental cash reserve ratio (CRR) as a purely temporary measure. At present, the CRR remains unchanged at 4%.
Bank Nifty index slumped over 278 points or 1.50% on NSE, trading at 18,228.95 at 9.24 am.
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Shares of public sector banks (PSBs) tanked more than private banks.
Top losers were: Punjab National Bank at Rs 135.60 per share (3.35%), followed by Bank of Baroda at Rs 162.55 per share (3.19%), Bank of India at Rs 117.80 per share (2.97%), State Bank of India at Rs 253.35 per share (2.91%) and Canara Bank at Rs 301.45 per share (1.93%).
Private banks losers were: Yes Bank at Rs 1145.15 per share (1.93%), Kotak Mahindra Bank at Rs 737.90 (1.89%), ICICI Bank at Rs 255.40 (1.81%) and Federal Bank at Rs 69.40 per share (1.77%).
HDFC Bank, Axis Bank and IndusInd Bank were trading negative in the range of 0.40% - 1.45%.