Though the overall market reacted cautiously to the rate hike announced by the RBI, the bank Nifty sank by about 190 points in response to the credit policy announcement by the RBI.
Apart from the rate hike, the banking stocks were hit apparently by the RBI decision to free the savings bank rate.
Among the major losers were the PSU banks — SBI was down by Rs 26.75 to quote at Rs 1,882, PNB down Rs 19.40 to trade around Rs 950.80, Axis Bank lost Rs 28.55 to trade around Rs 1,140, BoB down Rs 19.90 to trade around Rs 712.70 and HDFC Bank lost Rs 21.85 to trade around Rs 462.50.
There were some banks that weathered the slide — Canara Bank was up by Rs 6.25 to trade around Rs 446.70, IDBI Bank lost just 80 paise to trade at Rs 104.10 and IndusInd Bank was down by Rs 1.45 to trade at Rs 274.50.