Banks stocks tumble after RBIs surprise rate hike

4 May 2022 , 02:30 PM

The Nifty Bank index was down 0.91% at 35,836. Meanwhile, the Nifty 50 index was down 247.45 points, or 1.45% at 16,821.65.

Among the components of the Nifty Bank index, HDFC Bank (down 2.75%), Bandhan Bank (down 2.64%), Axis Bank (down 2.14%), IndusInd Bank (down 1.52%) and Bank of Baroda (down 1.42%), State Bank of India (down 1.19%), ICICI Bank (down 1.14%), Punjab National Bank (down 1%) and AU Small Finance Bank Ltd (down 0.95%) declined.

The Reserve Bank of India (RBI)s Monetary Policy Committee (MPC) held an off-cycle meeting between 2nd and 4th May 2022.

MPC unanimously voted to increase policy repo rate by 40 bps to 4.40%.

MPC judged that the inflation outlook warrants an appropriate stance. In MPCs view, monetary policy response at this juncture would help preserve macrofinancial stability amidst increasing volatility in financial markets, RBI Governor Shaktikanta Das said.

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