With the Reserve Bank of India effecting a revision in provisioning requirements for restructured standard loan accounts of banks to 2.75 per cent from per cent in its second quarter review of the monetary policy, bank stocks took a hit on the bourses on Tuesday.
The Bank Nifty of the National Stock Exchange was down 2.35 per cent to 11203 points, and the Bankex of the BSE was also down by 2.35 per cent to 11203.
It was felt that the move of the Central Bank would affect the profitability of banks, especially of the public sector ones.
Canara Bank was the major loser which fell 5.62 per cent to close at Rs. 397.20 on the NSE.
Keywords: RBI, monetary policy, CRR rates
