Bank Stocks Surge Amid Deposit Rate Cuts

Bank stocks soared on Tuesday, driven by a broader market rally and deposit rate cuts. IndusInd Bank led the surge with a nearly 7% increase. SBI reduced its lending rate following the Reserve Bank's policy cut, making loans cheaper. Additionally, HDFC Bank and Bank of India announced interest rate reductions.

Banking stocks took center stage on Tuesday, with IndusInd Bank climbing close to 7% amid a broader market upswing.

Shares of other major banks such as Axis Bank, HDFC Bank, and ICICI Bank also saw notable gains on the BSE, reflecting investor optimism.

The surge in banking shares was attributed to recent deposit rate cuts, as noted by Vinod Nair from Geojit Investments. The BSE Bankex index itself ascended by 2.51%, paralleling a robust rise in major indices like the BSE Sensex, which advanced over 1,577 points.

State Bank of India, the nation's largest lender, sparked further attention by reducing its lending rates in line with the Reserve Bank's recent policy adjustment, facilitating more affordable loans.

Concurrently, HDFC Bank lowered its savings account interest rates, and Bank of India announced a reduction in home loan rates, marking a significant trend among financial institutions responding to the Reserve Bank's policy changes.

(With inputs from agencies.)