Banking Stocks Recover after RBI Credit Policy

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Banking Stocks Recover after RBI Credit Policy
Allahabad Bank: Quotes, News
BSE 76.05BSE Quote2.15 (2.83%)
NSE 76.05NSE Quote2.1 (2.76%)
Syndicate Bank: Quotes, News
BSE 73.85BSE Quote3.2 (4.33%)
NSE 73.90NSE Quote3.35 (4.53%)
Banking stocks recovered in today's trade, though after falling intially after the Reserve Bank of India kept interest rates steady in its policy meet, largely in line with expectations.

Rate sensitive stocks fell initially in today's trade. However, recovered on hints that the RBI will cut interest rates in the next policy or even outside the policy.

"Liquidity conditions have eased considerably in Q3 of 2014-15 due to structural and frictional factors, as well as the fine tuning of the liquidity adjustment framework. With deposit mobilisation outpacing credit growth and currency demand remaining subdued in relation to past trends, banks are flush with funds, leading a number of banks  to reduce deposit rates," the RBI has noted.

Shares of PSU banks, Allahabad Bank was up more then 6 per cent, Syndicate Bank rose 7 per cent, IDBI was up 3.75 per cent, Andhra Bank rose 4 per cent and IOB rose 2.3 per cent were the top gainers.

Read more about: banking stocks, rbi
Story first published: Tuesday, December 2, 2014, 15:27 [IST]
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