RBI Repo Rate Cut Impact: SBI, PNB, Axis Bank — Bank Stocks Decline, Nifty Bank Down 0.5%
State Bank of India shares fell nearly 2%, followed by over 1% declines in Bank of Baroda, Punjab National Bank and Axis Bank Ltd.
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.
