Will RBI’s CRR hike to 99% hit HDFC, SBI and other bank stocks? Here’s what Jefferies says
Economic Times 2 hrs ago·12 Oct 2026, 4:37 am
The Reserve Bank of India has increased the Cash Reserve Ratio (CRR) to 99%, meaning banks must park a larger portion of their deposits with the central bank. This move is designed to absorb excess liquidity and manage inflation. For investors, this is a key development as it directly impacts the cost of funds for banks.
According to Jefferies, this hike is expected to have a limited effect on banks' profitability. While funding costs may rise slightly, the impact on Net Interest Margins (NIMs) is projected to be minimal. The brokerage firm maintains a positive view on the banking sector, favoring banks over non-banking financial companies (NBFCs) in the current environment.
For Bandhan Bank specifically, Jefferies sees significant potential for growth. The firm has identified an upside of up to 47% for the stock, citing the bank's strong fundamentals and the broader positive outlook on the banking sector. Investors should monitor how the bank manages its liquidity and interest rates in the coming quarters.
Affected stocks
Neutral1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Bandhan Bank (BANDHANBNK).
- Category: Economy.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for Bandhan Bank and could move the stock. Use the price and stock snapshot to gauge how the market is responding.
