PSU bank stocks rally after RBI repo rate pause
1 min read 06 Apr 2023, 11:24 AM ISTAfter the RBI announced to keep the repo rate unchanged at 6.50 per cent, PSU bank shares rally due to lucrative lending for customers
PremiumThe Public Sector Undertaking (PSU) banks cheered up after RBI's announcement of keeping the repo rate unchanged at 6.50 per cent on Thursday. The NIFTY PSU bank was up by 1.4 per cent after the repo rate announcement by RBI Governor Shaktikanta Das.
The impact of unchanged lending rate was seen most in Bank of Mahrashtra, Punjab National Bank, and Punjab and Sind Bank. PNB shares were up by 2.27 per cent during intraday trading. Whereas, Bank of Maharashtra stock rose by 2.14 per cent at ₹26.22. In addition to the two, Punjab and Sind bank was also trading higher by 2 per cent at ₹26.56. Whereas, SBI stock was also picking up pace and trading 1.81 per cent higher at ₹531.90 per share.
Nearly, all the PSU banks are trading in green after RBI's announcement on repo rate and inflation. The RBI monetary policy committee (MPC) announced to keep repo rate unchanged at 6.50 per cent. Whereas, other policy rates were also kept unchanged.
“The GDP grew 7 percent in 2022-23, indicating the economic conditions were resilient," Governor Das said while addressing the RBI MPC meeting today.
Notably, the central bank has already increased the repo rate by a total of 250 basis points since May 2022. RBI repo rate will focus on the withdrawal of monetary policy accomodation, said Governor Das. He also said that the policy decisions taken since May 2022, are still reaping their effect in the economy and system. Banking and non-banking financial system is also looking healthy, indicated the RBI Governor.
In addition to repo rate, the RBI also raised its GDP growth projection for India for FY 24 to 6.5 per cent from earlier estimate of 6.4 per cent. Governor Shaktikanta Das said that inflation for FY 2023-24 is projected at 5.2%. “Overall inflation is above the target and the current policy rate still remains accommodative."
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