Last Updated:
Bank of Baroda, Canara Bank, Axis Bank, SBI were the top gainers gaining by up to 1.92 per cent.
The CRR cut is expected to free up an additional Rs 1.16 lakh crore in the banking system, providing much-needed relief to lenders.
As the RBI cut the cash reserve ratio by 50 basis points (bps) to 4 per cent, bank stocks, especially PSU banks, saw a sharp swing on Friday, rising up by to around 2 per cent. The Nifty PSU Bank was up by over 1 per cent.
Bank of Baroda, Canara Bank, Axis Bank, SBI were the top gainers gaining by up to 1.92 per cent.
In a major move to boost liquidity in the banking sector, the Reserve Bank of India (RBI) has announced a reduction in the Cash Reserve Ratio (CRR) from 4.5% to 4%. The measure is expected to free up an additional Rs 1.16 lakh crore in the banking system, providing much-needed relief to lenders.
Announcing the RBI MPC decision on December 6, Das said the financial parameters of banks, and NBFCs continue to be strong and the health of the financial sector is at its best.