Banking shares are under pressure on the bourses in early morning trades falling up to 8% after the Reserve Bank of India (RBI) has imposed some more measures to tighten liquidity to stabilize Indian rupee.
IndusInd Bank and Yes Bank were down by 8% each at Rs 426 and Rs 404 respectively, while Federal Bank and Axis Bank were slipped 5% each at Rs 362 and Rs 1,146 respectively on the Bombay Stock Exchange (BSE).
State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Oriental Bank of Commerce, Bank of India, Dena Bank, Canara Bank, ING Vysya Bank and Corporation Bank were down 2-5%.
The BSE banking index Bankex, the largest loser among sectoral indices, was down nearly 4% or 451 points as compared to 0.39% or 80 points fall in benchmark Sensex at 0955 hours.
The RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank’s net deposits and time liabilities (NDTL), which would be effective from July 24, 2013. The earlier imposed cap on overall allocation of funds at Rs 75,000 crore under LAF stands withdrawn.
It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99% from 70%, which would be effective from first day of fortnight beginning July 27, 2013.
IndusInd Bank and Yes Bank were down by 8% each at Rs 426 and Rs 404 respectively, while Federal Bank and Axis Bank were slipped 5% each at Rs 362 and Rs 1,146 respectively on the Bombay Stock Exchange (BSE).
State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Oriental Bank of Commerce, Bank of India, Dena Bank, Canara Bank, ING Vysya Bank and Corporation Bank were down 2-5%.
The BSE banking index Bankex, the largest loser among sectoral indices, was down nearly 4% or 451 points as compared to 0.39% or 80 points fall in benchmark Sensex at 0955 hours.
The RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank’s net deposits and time liabilities (NDTL), which would be effective from July 24, 2013. The earlier imposed cap on overall allocation of funds at Rs 75,000 crore under LAF stands withdrawn.
It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99% from 70%, which would be effective from first day of fortnight beginning July 27, 2013.
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