RBI Policy: PSU Bank Stocks Surge After CRR Cut | RBI Monetary Policy Key Announcements

In a bid to boost liquidity in the system, the RBI decided to cut the cash reserve ratio (CRR) by 50 basis points to 4%. Following the announcement, stocks of public sector banks like UCO Bank, Canara Bank, Bank of Baroda, PNB and SBI, surged as much as 3%. With the Nifty PSU Bank index surging more than one percent. As stated by the governor Shaktikanta Das, this reduction in the CRR would release primary liquidity of about ₹ 1.16 lakh crore to the banking system. Watch!