Banking stocks were under pressure today with the sectoral index, Bank Nifty, falling over 1 per cent. Among the banking stocks, Bank of Baroda, Yes Bank and IndusInd Bank fell over 2 per cent. Among other major losers, Kotak Mahindra Bank and HDFC lost over 1.5 per cent.
IndusInd Bank and Yes Bank had outperformed the markets in the past few sessions after posting in line Q4 earnings.
The selling pressure in banking stocks came despite the Reserve Bank of India on Thursday released revised priority sector norms, which were viewed positively by analysts.
Kishor Ostwal, CMD of CNI Research said, "Today's fall in banking stocks has nothing do with the positive comments on priority sector lending by the RBI. What is happening is ahead of the derivative expiry people are booking profits and we are witnessing some downward movement in the market."
Under the revised norms, banks have to give 8 per cent of the total credit to small and marginal farmers. RBI has also widened the definition of priority sector by including medium enterprises, social infrastructure and renewable energy while retaining the lending target to the sector at 40 per cent.
Eight per cent of total bank credit prescribed for small and marginal farmers within the agriculture segment has to be achieved in a phased manner -- 7 per cent by March 2016 and 8 per cent by March 2017, RBI said.
In another important change, the RBI said the inter-bank participation certificates (IBPCs) bought by banks, on a risk-sharing basis, are eligible for classification under respective categories of priority sector, provided the underlying assets are eligible to be categorized under the respective categories of priority sector.
Banking stocks were under pressure today with the sectoral index, Bank Nifty, falling over 1 per cent. Among the banking stocks, Bank of Baroda, Yes Bank and IndusInd Bank fell over 2 per cent. Among other major losers, Kotak Mahindra Bank and HDFC lost over 1.5 per cent.
IndusInd Bank and Yes Bank had outperformed the markets in the past few sessions after posting in line Q4 earnings.
The selling pressure in banking stocks came despite the Reserve Bank of India on Thursday released revised priority sector norms, which were viewed positively by analysts.
Kishor Ostwal, CMD of CNI Research said, "Today's fall in banking stocks has nothing do with the positive comments on priority sector lending by the RBI. What is happening is ahead of the derivative expiry people are booking profits and we are witnessing some downward movement in the market."
Under the revised norms, banks have to give 8 per cent of the total credit to small and marginal farmers. RBI has also widened the definition of priority sector by including medium enterprises, social infrastructure and renewable energy while retaining the lending target to the sector at 40 per cent.
Eight per cent of total bank credit prescribed for small and marginal farmers within the agriculture segment has to be achieved in a phased manner -- 7 per cent by March 2016 and 8 per cent by March 2017, RBI said.
In another important change, the RBI said the inter-bank participation certificates (IBPCs) bought by banks, on a risk-sharing basis, are eligible for classification under respective categories of priority sector, provided the underlying assets are eligible to be categorized under the respective categories of priority sector.
Banking stocks were under pressure today with the sectoral index, Bank Nifty, falling over 1 per cent. Among the banking stocks, Bank of Baroda, Yes Bank and IndusInd Bank fell over 2 per cent. Among other major losers, Kotak Mahindra Bank and HDFC lost over 1.5 per cent.
IndusInd Bank and Yes Bank had outperformed the markets in the past few sessions after posting in line Q4 earnings.
The selling pressure in banking stocks came despite the Reserve Bank of India on Thursday released revised priority sector norms, which were viewed positively by analysts.
Kishor Ostwal, CMD of CNI Research said, "Today's fall in banking stocks has nothing do with the positive comments on priority sector lending by the RBI. What is happening is ahead of the derivative expiry people are booking profits and we are witnessing some downward movement in the market."
Under the revised norms, banks have to give 8 per cent of the total credit to small and marginal farmers. RBI has also widened the definition of priority sector by including medium enterprises, social infrastructure and renewable energy while retaining the lending target to the sector at 40 per cent.
Eight per cent of total bank credit prescribed for small and marginal farmers within the agriculture segment has to be achieved in a phased manner -- 7 per cent by March 2016 and 8 per cent by March 2017, RBI said.
In another important change, the RBI said the inter-bank participation certificates (IBPCs) bought by banks, on a risk-sharing basis, are eligible for classification under respective categories of priority sector, provided the underlying assets are eligible to be categorized under the respective categories of priority sector.
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