Nifty Bank under pressure amid global cues; RBL Bank, ICICI Bank, AU Small, SBI weigh down

On Monday RBI allows banks to amortize additional liability post revision in family pension over five years beginning 2021-22.

Oct 05, 2021 10:10 IST India Infoline News Service

Bank Nifty witnessed broad-based selloff amid weak global cues on Tuesday as investors focus shifts to RBI's fourth bi-monthly monetary policy for FY22 that is scheduled for Friday this week. Further, the corporate earnings season is again on the spotlight for the investors on account of easing of Covid-19 curbs.

However, on Monday the RBI allowed banks to amortise additional liability post revision in family pension over five years beginning 2021-22. 

According to the experts, the RBI is expected to maintain the status quo in the policy repo rate at 4% once again.

At around 10:40 AM, Bank Nifty was trading at 37,490.75 down by 88.90 points or 0.24%. The index has touched an intraday high and low of 37,546 and 37,364.75 respectively.

On the index, IndusInd Bank, HDFC Bank and IDFC First Bank were only gainers adding marginal gains to support the index. IndusInd Bank registers Rs2,21,821cr advances in Q2FY22 as deposits rise whopping 21% yoy.

However, on the other hand, RBL Bank was the top bear plunging over 1% followed by ICICI Bank and AU Small Finance Bank diving around 1% each. SBI and Bandhan Bank were also down 0.5% at Rs460.55 per piece and Rs293.95 per piece.

PNB, Kotak Bank, Axis Bank and Federal Bank also slipped marginally to drag the Nifty50 benchmark. Kotak Bank receives govt's nod for collection of direct, indirect taxes.

Furthermore, the Reserve Bank on Monday gave licence to the Rs6,000cr National Asset Reconstruction Company Ltd (NARCL), which will help to kickstart operations of the bad bank.

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