The Reserve Bank of India (RBI) policy surprise on Wednesday shored up banking stocks on the Bombay Stock Exchange (BSE). Stocks of Union Bank of India, Allahabad Bank, Oriental Bank of Commerce, Canara Bank, Union Bank of India, Bank of India, Syndicate Bank, Corporation Bank and State Bank of India rose up to 5 per cent after the RBI decided to keep key policy rates unchanged.
The BSE Bankex rose 1.41 per cent, with all 13 stocks making an upward move.
The repo rate remains unchanged at 7.75 per cent and the marginal standing facility (MSF) at 8.75 per cent. The cash reserve ratio (CRR) has also been kept unchanged at 4 per cent.