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Rediff News  All News  » Business » Banking shares rebound post RBI policy

Banking shares rebound post RBI policy

October 29, 2013 12:19 IST

moneyBanking shares are trading higher by up to 2%, erasing there early morning losses, after the Reserve Bank of India reduced the marginal standing facility (MSF) rate by 25 basis points to 8.75% from 9%.

Banks usually tap the MSF rate during acute cash tightness.

The RBI also increased the liquidity provided through term repos of 7-day and 14-day tenor from 0.25% of net demand and time liability of the banking system to 0.5%

with immediate effect.

ICICI Bank, YES Bank, IndusInd Bank, Axis Bank, Union Bank of India, Bank of India and Punjab National Bank are trading higher by 2-3% on the National Stock Exchange.

The NSE banking shares index Bank Nifty was up 2% compared to 0.6% rise in benchmark CNX Nifty at 1125 hours.

Currently, Bank Nifty trading at day’s high of 10,968, has recovered nearly 300 points from low of 10,669 in early morning trades.

SI Reporter in Mumbai