RBI Repo Rate Cut Impact: SBI, PNB, Axis Bank — Bank Stocks Decline, Nifty Bank Down 0.5%

Most bank stocks fell on Friday soon after the Reserve Bank of India reduced the repo rate by 25 basis points. The Nifty Bank dropped 0.5% to around 50,150 level, with three advances and nine declines.

State Bank of India shares fell nearly 2%, followed by over 1% declines in Bank of Baroda, Punjab National Bank and Axis Bank Ltd.

While, shares of AU Small Finance Bank rose the most at 10:20 a.m. It gained 1.4%. HDFC Bank Ltd. and IndusInd Bank Ltd. were trading 0.6% higher.

The Monetary Policy Committee under the new governor Sanjay Malhotra decided to cut the repo rate by 25 basis points to 6.25%. The MPC voted unanimously to continue with 'neutral' stance.

The MPC will remain unambiguously focused to bringing inflation to target on durable basis, the governor said.