Banking stocks hammered as RBI hikes repo rate

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Banking stocks hammered as RBI hikes repo rate
YES Bank: Quotes, News
BSE 1317.05BSE Quote8.25 (0.63%)
NSE 1317.40NSE Quote8.6 (0.65%)
ICICI Bank: Quotes, News
BSE 277.70BSE Quote0.2 (0.07%)
NSE 277.40NSE Quote0.2 (0.07%)
Banking stocks were hammered out of shape following the RBI move to hike repo rates. Repo rates are rates at which the RBI lends to banks and any hike in these rates normally leads to higher interest rates in the economy.

Banking shares which were hammered out of shape were Yes Bank which fell 11%, while Punjab National Bank lost 9%, Bank of India 8%, Axis Bank 7% and State Bank 5.25%.

Smaller PSU banking stocks that fell in trade were Oriental Bank of Commerce down 9%, IDBI Bank down 4%, while UCO Bank, Dena Bank, Vijaya Bank also lost sharply in trade.

It maybe recalled that on Thursday these banks had gained sharply following the Fed decision to put a hold on tapering. Today's fall almost wiped off most of the gains that the banking sector stocks saw on Thursday.

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