Coming on heels of a merger, HDFC Bank now hit most by RBI’s liquidity-draining move
Getty Images
A customer walks out of HDFC bank branch in Mumbai on July 1, 2023.
Synopsis
RBI’s imposition of an incremental cash reserve ratio will lead to the impounding of deposits that weighed on the banking stocks. Since the announcement, the Nifty Bank Index has shed nearly 2% as against Nifty 50’s 1.2% fall (August 22 data), while HDFC Bank has slid around 4% — the most among its banking index peers.
India’s fight against soaring inflation has come to knock on the doors of HDFC Bank, the country’s largest private-sector lender. On August 10, the Reserve Bank of India (RBI) kept repo rates on hold for the third consecutive time in a row but raised the inflation projection for the September quarter by 100 basis points to 6.2%. The RBI’s decision was on the back of rising vegetable prices, particularly of tomatoes. But the apex bank’s measure
Refer & Earn
Get Unlimited Access to The Economic Times
