Banking stocks crash on RBIs cash control measures
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%.
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%.
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