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Banking stocks tumbles after RBI hikes repo rate

20 Sep 2013 Evaluate

Shares related to banking space are witnessing enormous amount of selling pressure after the Reserve Bank of India (RBI) has increased the policy repo rate by 25 basis points from 7.25% to 7.5% with immediate effect.

HDFC Bank is currently trading at Rs. 650.50, down by 33.35 points or 4.88% from its previous closing of Rs. 683.85 on the BSE. The scrip opened at Rs. 682.80 and has touched a high and low of Rs. 686.00 and Rs. 648.85 respectively. So far 79727 shares were traded on the counter.

ICICI Bank is currently trading at Rs. 982.90, down by 54.00 points or 5.21% from its previous closing of Rs. 1036.90 on the BSE. The scrip opened at Rs. 1032.05 and has touched a high and low of Rs. 1036.90 and Rs. 976.00 respectively. So far 183319 shares were traded on the counter.

State Bank of India (SBI) is currently trading at Rs. 1719.45, down by 89.30 points or 4.94% from its previous closing of Rs. 1808.75 on the BSE. The scrip opened at Rs. 1812.05 and has touched a high and low of Rs. 1844.55 and Rs. 1713.80 respectively. So far 382435 shares were traded on the counter.

Moreover, Axis bank down 5.88%, Bank of India down 6.78%, Bank of Baroda down 6.44%, Canara Bank down 5.33% and Federal Bank was down by 6.70%.

In a big shocker from the RBI new governor, Raghauram Rajan’s maiden Mid-Quarter Monetary Policy Review - September 2013, although the marginal standing facility (MSF) rate was reduced by 75 basis points from 10.25% to 9.5% with immediate effect, the policy repo rate under the liquidity adjustment facility (LAF) has been increased by 25 basis points from 7.25% to 7.5% with immediate effect.

Further, Rajan reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99% of the requirement to 95% effective from the fortnight beginning September 21, 2013, while keeping the CRR unchanged at 4.0%. Thus, with the hike of repo rate, the reverse repo rate under the LAF stands adjusted to 6.5% and the Bank Rate stands reduced to 9.5% with immediate effect.

HDFC Bank Share Price

799.90 4.40 (0.55%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
HDFC Bank 799.90
ICICI Bank 1347.50
Axis Bank 1359.15
Kotak Mahindra Bank 383.50
Indusind Bank 853.15
View more..

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