For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Banking Stocks Gain On Hopes Of Further Rate Cuts

|

Banking stocks rallied in trade, on hopes that there maybe a few more interest rate hikes this year. ICICI Bank, HDFC Bank, State Bank of India and Punjab National gains all saw smart gains in trade.

 Banking Stocks Gain On Hopes Of Further Rate Cuts
PNB was up 2 per cent in trade, while SBI and Axis were also up 2 per cent each.
 

The government slashed the interest on small savings rates, which may force banks to cut interest rates on deposits and hence lending rates. This could boost credit growth and also economic recovery.

The Reserve Bank of India is widely expected to cut interest rates later next month, by 25 basis points. Some analysts are pinning hopes on a sizeable 50 basis points cut in interest rates.

Inflation has been falling steadily in the last few months, thanks to a drop in crude prices. However, analysts are worried that should there not be normal monsoons, it could lead to a further spike in inflation and hence limit the ability of the RBI to cut interest rates.

GoodReturns.in

Read more about: icici bank hdfc bank
Story first published: Monday, March 21, 2016, 12:35 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Find IFSC

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more