Bank Stocks Fall Up To 6%: YES Bank Among Top Losers
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Banking stocks fell sharply on Monday as expectations of RBI rate hikes increased amid inflation and higher oil prices. Rising government bond yields also raised concerns over treasury income.
Banking stocks were under heavy selling pressure on Monday, with public and private lenders both declining. The Nifty Bank index fell nearly 2%. Investors were increasingly expecting higher interest rates as bond yields rose. Elevated inflation, higher oil prices and tighter global financial conditions added to the pressure.
The Indian government bond yield also climbed to 7.12%, its highest since May 2026. That added to concerns around the banking sector. Higher yields can affect banks through their bond portfolios and put treasury income under pressure.
Bank Stocks Today: Share Price Movement
Public sector banks bore much of the pressure, while several large private lenders also ended lower.
Bank | % Change |
|---|---|
YES Bank | -5.87% |
Union Bank | -4.69% |
IDFC First Bank | -3.88% |
Canara Bank | -3.47% |
Punjab National Bank | -3.43% |
Bank of Baroda | -3.30% |
HDFC Bank | -2.25% |
AU Bank | -2.23% |
The Nifty Bank closed at 54,471.65, down 1.99%. The BSE PSU Bank index fell 3.25% to 4,530.72.
Why Are Bank Stocks Falling?
Expectations of tighter monetary policy were a key trigger for the decline. Market pricing pointed to close to 125 basis points of rate hikes over the following year, according to the research.
India has so far avoided the rate increases seen across several other Asian economies. However, higher crude oil prices, rising food prices and recent US Federal Reserve rate hikes have increased pressure on the RBI's policy outlook.
Deficient rainfall has added another concern, with weaker kharif and rabi crop output potentially affecting rural consumption.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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