Banking stocks hold steady after RBI Monetary Policy

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, August 5, 2014, 11:45 [IST]

Banking stocks were ruling steady after the Reserve Bank of India maintained a status quo on interest rates.

Shares in ICICI Bank was marginally down along with HDFC Bank, while most of the PSU banking stocks like State Bank of India, Canara Bank, Punjab National Bank, Bank of Baroda and Bank of India were trading higher.

The Reserve Bank of India (RBI) today kept repo rates on hold as was largely expected from the country's central bank. Repo rates are rates at which the RBI lends money to banks.

This means that interest rates in the economy may not go up in a hurry and interest rate on loans, including personal, home loan, car loan, education loan and gold loan would rule steady.

The RBI marginally cut the HTM ceiling to 24% and kept the CRR unchanged. The central bank has reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.5 per cent to 22.0 per cent of their NDTL with effect from the fortnight beginning August 9, 2014.

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