Bank stocks fall as RBI measures make short-term funds hard to access

Bank stocks are not reacting well to the latest measures announced by apex bank.

Written by Reuters | Mumbai | Published: July 24, 2013 11:02:25 am

Shares of Indian banks fell on Wednesday after the central bank announced fresh measures to drain cash,making access to short-term funds harder. Yes Bank Ltd dropped 5.81 percent,while IndusInd Bank Ltd fell 6.76 percent. The Reserve Bank of India on Tuesday lowered the overall limit for borrowing under the daily liquidity adjustment facility (LAF),which offers funds in exchange for collateral,for each bank to 0.5 percent of deposits from 1 percent. The NSE banking index was down 3.25 percent.

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