The Indian stock market saw a tremendous rise on Tuesday and especially there was a great bounce in the shares of banking sectors. On borrowing from many banks, the announcement of cuts in interest rates showed a jump in these shares of about 6 percent. The bank has made this change in its lending interest rates after the Reserve Bank of India (RBI) cut the repo rate by cutting 25 basis points by 6 percent.

Indusind Bank shares rose up 6 percent on the National Stock Exchange, while HDFC Bank shares rose 3.3 percent, Axis Bank about 3 percent and ICICI Bank up 2.3 percent.

IDFC First Bank and State Bank of India (SBI) were also trading above 2 percent, while the Nifty Banking Index increased by 2.39 percent at around 10.35 am.

Deposit rate reduction

HDFC, Yes Bank, and Bank of India have announced a cut in interest rates on deposits. This means that now investors will get relatively low interest on their low deposits. This bank’s effort to cut the rate is to remain in competition. However, he has taken steps as per the decision of RBI.

On the other hand, amidst global uncertainties, the target of RBI’s policy decision is to maintain economic development at present. However, the bank has predicted the situation to remain normal in the case of inflation by next year.

In addition, banks have also cut the rate for lending, after which the loan from the bank will become cheaper than before. SBI, Bank of India and Bank of Maharashtra have cut the lending landing rate by 25 basis points.

The reason for this boom in the banking sector is the result of a change in its attitude towards the growth of RBI, which is a sign that the central bank is constantly trying to speed up the economy.

Also read: Asian market boom, 225 points Nikkei, Sensex-Nifty expected to fly in the Indian market