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Banks decline after RBI keeps key interest rates unchanged

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Capital Market
Last Updated : Dec 02 2014 | 12:16 PM IST

Shares of 13 banks fell by 0.08% to 1.27% at 11:04 IST on BSE after the Reserve Bank of India kept key rates unchanged in its fifth bi-monthly monetary policy review today, 2 December 2014.

Yes Bank (down 1.27%), Canara Bank (down 1.18%), IndusInd Bank (down 1.14%), Federal Bank (down 0.91%), Union Bank of India (down 0.9%), HDFC Bank (down 0.86%), Bank of Baroda (down 0.78%), State Bank of India (down 0.77%), IDBI Bank (down 0.5%), ICICI Bank (down 0.37%), Axis Bank (down 0.31%), Bank of India (down 0.1%) and Punjab National Bank (down 0.08%), edged lower.

However, Kotak Mahindra Bank was up 0.68%.

The BSE Bankex was down 1.06% at 20,996.66. It underperformed the Sensex, which was down 0.60% at 28,388.33.

The BSE Bankex had outperformed the market over the past one month till 1 December 2014, rising 8.80% compared with 2.49% rise in the Sensex. The index had also outperformed the market in past one quarter, rising 15.80% as against Sensex's 6.30% rise.

The Reserve Bank of India (RBI) in its fifth bi-monthly monetary policy review today, 2 December 2014, kept repo rate unchanged at 8% and reverse repo rate unchanged at 7%. RBI also kept cash reserve ratio (CRR) unchanged at 4%.

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First Published: Dec 02 2014 | 11:00 AM IST

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