HDFC Bank, Axis Bank: Why banks have taken a beating post the RBI policy?

A status quo on interest rate meant lenders may have to either hold or raise rates further in a bid to mobilise higher deposits

Shares of private banks took a beating post the Reserve Bank of India's policy decision, where the Monetary Policy Committee (MPC) decided to keep repo rate unchanged at 6.5 per cent for a sixth straight policy.
 

The Nifty Private Bank index tumbled 1.7 per cent intraday led by losses in Axis Bank (3 per cent), ICICI Bank (2.6 per cent), Kotak Mahindra Bank (2 per cent), and HDFC Bank (1.5 per cent).
 

By comparison, the Nifty50 index slipped 0.9 per cent intraday, but the Nifty PSU Bank index soared over 2 per cent.
 

According to analysts, a status quo