Banking shares have rallied after the central bank cut the cash reserve ratio for banks by 75 basis points on Friday, (March 09, 2012).
At 11.06 am State Bank of India up by 3.73%, Bank of Baroda up by 2.34%, ICICI Bank up by 2.09%, IDBI Bank up by 1.97%, Federal Bank up by 1.90%, Bank of India up by 1.92%, Axis Bank up by 1.83%, Canara Bank up by 1.80%, Punjab National Bank up by 1.64%, IndusInd Bank up by 1.34%, Kotak Mahindra Bank up by 1.30% and Union Bank of India up by 0.89%.
The RBI on Friday reduced the CRR — the portion of deposits banks have to keep with the central bank — by 75 basis points. This will infuse Rs48,000 crore liquidity into the system.
Meanwhile, the move ahead of this week's official rate announcement spurred speculation that there could be a 25 basis points cut in the repo rate, the key policy rate, on the 15th one day before the budget for 2012-13, the report suggests.
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At 11.06 am State Bank of India up by 3.73%, Bank of Baroda up by 2.34%, ICICI Bank up by 2.09%, IDBI Bank up by 1.97%, Federal Bank up by 1.90%, Bank of India up by 1.92%, Axis Bank up by 1.83%, Canara Bank up by 1.80%, Punjab National Bank up by 1.64%, IndusInd Bank up by 1.34%, Kotak Mahindra Bank up by 1.30% and Union Bank of India up by 0.89%.
The RBI on Friday reduced the CRR — the portion of deposits banks have to keep with the central bank — by 75 basis points. This will infuse Rs48,000 crore liquidity into the system.
Meanwhile, the move ahead of this week's official rate announcement spurred speculation that there could be a 25 basis points cut in the repo rate, the key policy rate, on the 15th one day before the budget for 2012-13, the report suggests.
....more info