Bank shares up on RBI's liquidity measures

Wed Dec 26, 2012 2:10pm IST

A customer uses his card to withdraw money from an ATM in Jammu October 14, 2008. REUTERS/Amit Gupta/Files

A customer uses his card to withdraw money from an ATM in Jammu October 14, 2008.

Credit: Reuters/Amit Gupta/Files

Related Topics

Stocks

   

Reuters Market Eye - Indian lenders, including ICICI Bank(ICBK.NS), are higher on hopes of easing liquidity as the Reserve Bank of India continues with cash injection measures and rate cut hopes in January.

Advance tax outflows and an increase in the government's cash balance with the RBI have temporarily exacerbated liquidity tightness in the sector.

The RBI announced on Monday it would conduct open market operations (purchase of government securities) for an aggregate amount of 80 billion rupees on December 28.

"We believe that the RBI will continue to announce open market operations in an ad hoc manner to inject liquidity into the banking system," Morgan Stanley said in a note.

Since December 4, the RBI has added liquidity worth 311.6 billion rupees through three rounds of OMOs.

ICICI Bank is up 2.12 percent while State Bank of India rises 1.6 percent.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage