Back to Career News

Banking stocks give thumbs up to RBI’s policy

June 09, 2022

Banking stocks give thumbs up to RBI’s policy
Banking stocks have reacted positively after the 50 bps repo rate hike announced in today’s RBI policy. Banking major SBI share price is up over 2 per cent, HDFC Bank share price is up close to 1 per cent after trading in red in morning deals, Bank of Baroda is up 2.70 per cent on NSE on Tuesday, while Kotak Mahindra Bank, Federal Bank, ICICI Bank and IndusInd Bank are also trading in positive territory.

According to stock market experts, RBI’s decision to keep the CRR unchanged and hike the repo rate has led to a good fall among banking stock enthusiasts. He said that he is glad to see that RBI MPC Growth factors are not left out of consideration completely and if inflation calms down, growth may again take priority, a situation that will benefit the banking sector through increased credit line demand.

Speaking on the reasons for the rise in banking stocks after the RBI policy announcements, Ravi Singhal, Vice Chairman, GCL Securities said, “As of today RBI Policy Announcement, India’s central bank has increased the repo rate by 50 bps but has kept the CRR unchanged which is expected to boost the banking business. This scenario will enable Indian banks to get more money for lending and more income through interest rate hikes.”

Echoing with Ravi Singhal of GCL Securities, Ladderup Wealth Management Pvt Ltd Managing Director Raghavendra Nath said, “The CRR was expected to increase, but it seems that RBI has decided to maintain liquidity with banks for now.”

Important Links:

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp