Early Holi on D-Street: Banks surge on RBI repo rate cut

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau

It is a colours galore in bank shares as holi seems to set in early on Dalal Street. Shares of bank stocks jumped up to 4 percent in early trade on Wednesday after the Reserve Bank of India slashed repo rate by 25 basis points to 7.5 percent. Both Bankex and Bank Nifty are up around 2 percent.

The rate at which the RBI lends money to commercial banks is called repo rate. A reduction in the repo rate helps banks get money at a cheaper rate.

This is the second out of turn 25 basis-point cut after the one in January. The RBI has, meanwhile, kept the cash reserve ratio (CRR) unchanged at 4 percent.

"Disinflation is evolving along the path set out by the Reserve Bank in January 2014 and, in fact, at a faster pace than earlier envisaged," the RBI said in its statement for the reasons behind the rate cut.

The RBI also praised the fiscal consolidation measures announced in the Budget, despite the government extending its 3 percent fiscal deficit target by a year.