Savings rate deregulation: Banks plunge

NSE Bank Nifty fell as much as 2.2 percent,was up 0.8 percent before the news. HDFC Bank would hurt the most due to it enjoying highest CASA among large cap banks and then comes State Bank of India,Axis Bank and ICICI Bank,the analysts added.

HDFC Bank fell the most by 4.21 percent to 463.70 rupees,Bank of Baroda was down 3.05 percent at 710 rupees,Axis Bank shares lost 2.91 percent to be at 1134.90 rupees,Sate Bank of India8217;s shares lost 2.73 percent at 1,856.20 rupees. ICICI Bank shares were trading 0.77 percent lower at 861.80 rupees.

Deregulation of savings bank rate will raise upwards interest rate curve in the short-run,but eventually savings bank rate will settle at extremely low rates as shown by the international experience,Rupa Rege Nitsure,chief economist,Bank of Baroda.

Company INFO More on State Bank of India

Stocks More on HDFC Bank