State Bank of India declined over 2% and touched the weekly low of Rs2172.50 and ICICI Bank fells over 2% and touched the weekly low of Rs896.90 on the BSE, after the RBI kept interest rates unchanged.
Banking shares have tumbled since the Reserve Bank of India ( RBI) kept interest rates unchanged on Thursday (March 15, 2012), sending bond yields sharply higher and offseting the positive impact from a surprise cut in the cash reserve ratio earlier this month.
Shares in banks continue to fall as worries about the timing and magnitude of interest rate cuts weigh on a sector already facing a number of headwinds including a potential rise in bad assets and liquidity shortages.
Though the government budget unveiled on Friday (March 16, 2012) had positive measures to the sector, such as an injection of funds into public banks, Moody's Investors Service said the overall impact would still be negative.
'Banks will get capital but remain depressed by the government's worsening fiscal position,' said the ratings agency in a statement.
Among decliners, SBI lost 1.7%, after declining 5.4% over the previous two sessions. ICICI Bank lost 0.8%, after falling a total of 3.8% on Thursday and Friday.
At 1.58 pm, SBI was trading at Rs2167, down by 2.74%, with a volume of 3.34 lakh shares on the BSE.
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Banking shares have tumbled since the Reserve Bank of India ( RBI) kept interest rates unchanged on Thursday (March 15, 2012), sending bond yields sharply higher and offseting the positive impact from a surprise cut in the cash reserve ratio earlier this month.
Shares in banks continue to fall as worries about the timing and magnitude of interest rate cuts weigh on a sector already facing a number of headwinds including a potential rise in bad assets and liquidity shortages.
Though the government budget unveiled on Friday (March 16, 2012) had positive measures to the sector, such as an injection of funds into public banks, Moody's Investors Service said the overall impact would still be negative.
'Banks will get capital but remain depressed by the government's worsening fiscal position,' said the ratings agency in a statement.
Among decliners, SBI lost 1.7%, after declining 5.4% over the previous two sessions. ICICI Bank lost 0.8%, after falling a total of 3.8% on Thursday and Friday.
At 1.58 pm, SBI was trading at Rs2167, down by 2.74%, with a volume of 3.34 lakh shares on the BSE.
....more info