The Nifty Private Bank index was down by 0.55%. The Nifty PSU Bank index was down 1.22%. Both these indices underperformed the Nifty 50 Index, which was down 0.46% to 11,966.85.
Among public sector banks, Central Bank of India (down 0.2%), Jammu & Kashmir Bank (down 0.58%), Punjab National Bank (down 0.67%), Canara Bank (down 1%), State Bank of India(down 1.42%), Bank of India (down 1.56%), Union Bank of India (down 2.05%), Allahabad Bank (down 2.54%), Syndicate Bank (down 2.72%), Bank of Baroda (down 2.79%) and Orient Bank of Commerce (down 0.79%), declined.
Among private sector banks, Yes Bank (down 2.85%), Axis Bank (own0.63 %), Federal Bank (down 1.95%), Kotak Mahindra Bank (down 0.07 %), IDFC First Bank (down 2.64%), HDFC Bank (down 0.13 %), RBL Bank (down 0.95%), ICICI Bank (down 0.86%), IndusInd Bank (down 2.74%), declined.
The Reserve Bank of India (RBI) concluded its three-day Monetary Policy Committee (MPC) meeting today, 6 June 2019. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75% from 6% with immediate effect.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6%. The MPC also decided to change the stance of monetary policy from neutral to accommodative.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth, RBI said in a statement.