Shares of most banking stocks traded in the green after the Reserve Bank of India (RBI) announced a 100 basis points cut in the Cash Reserve Ratio (CRR), reducing it from 4% to 3%. RBI Governor Sanjay Malhotra also announced a 50 basis points cut in the repo rate to 5.50% and revised the FY26 CPI inflation forecast downward to 3.7%.
As of 10:40 AM, several banking stocks showed positive movement. AU Small Finance Bank was up 0.97%, Axis Bank rose 1.71%, and Bandhan Bank gained 2.07%. Equitas Small Finance Bank climbed 4.30%, while CSB Bank advanced 2.14%. Jana Small Finance Bank, not listed on NSE, was up 3.05%. Fino Payments Bank added 2.87%, and Tamilnad Mercantile Bank rose 3.13%.
Public sector banks showed mixed trends. SBI was up 0.96%, PNB gained 1.27%, and Bank of Baroda declined by 1.85%. Central Bank and Indian Overseas Bank fell over 2%, while UCO Bank dropped nearly 3%. IDFC First Bank and RBL Bank rose by 1.93% and 2.23%, respectively.
Private lenders like ICICI Bank and HDFC Bank traded flat to slightly positive. Kotak Mahindra Bank was up 0.85%, and IndusInd Bank gained 0.93%. Yes Bank traded 0.57% higher, and Union Bank rose 0.49%.
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