Bank stocks fall as higher CRR tightens liquidity
Nifty Bank stocks fell after the RBI raised daily CRR maintenance to 99% from 90%, effective 16 Oct. SBI dropped 1.77%, while PNB declined 1.35%; OI Charts data showed PNB futures long build-up before the policy move.
after close1 source ↓machine-written, see hownot a recommendation
- PNB close
- ₹116.98
- On the day
- +1.47%
- Futures OI, long build-up
- +0.5%
- Put-call ratio
- 0.95
- Max pain
- ₹115.00
Nifty Bank stocks fell on Monday, 12 Oct 2026, after the Reserve Bank of India raised the daily cash reserve ratio maintenance requirement to 99% from 90%, effective 16 Oct. All 10 constituents declined in the session, with State Bank of India falling 1.77% to ₹942.10, Punjab National Bank slipping 1.35% to ₹115.40 and ICICI Bank declining 1.34% to ₹1,336.90. Union Bank of India and IndusInd Bank fell 1.2%-1.3%, while Canara Bank, AU Small Finance Bank and YES Bank also lost more than 1%. Axis Bank, HDFC Bank and Kotak Mahindra Bank fell as much as 0.8%. The move put pressure on the banking sector 💼 because a larger share of deposits must remain with the central bank rather than support loans or other interest-earning assets.
The liquidity impact is the immediate market concern. Jefferies said the change could weigh on net interest margins, although banks may eventually pass the higher funding cost on to borrowers. The brokerage also noted that banks typically maintain an average buffer of around 10% above the earlier 90% threshold. The new requirement therefore reduces the room available in that buffer and can affect loan pricing, deposit competition and short-term credit growth. The effect is sector-wide, but the share-price declines show that investors focused first on the potential earnings pressure rather than any possible pass-through to customers. ⚖️
OI Charts data for Punjab National Bank, as of 9 Oct 2026, showed a close of ₹116.98, up 1.47% on the day, with volume of 12,666,514 shares. Its futures open interest rose 0.5% in a long build-up, while the futures traded at a 0.06% premium. The stock had gained 6.8% over five sessions and 1.2% over 20 sessions, but remained below its 52-week high of ₹135.15 recorded on 19 Jan 2026. In its 27 Oct expiry, max pain was ₹115, the largest put open interest was at ₹114 and the largest call open interest was at ₹120. These levels provide the next derivatives reference points after the policy-driven decline
Traders will watch the implementation from 16 Oct, banks’ liquidity and deposit-cost commentary, and whether lenders pass the impact through to borrowers. For Punjab National Bank, ₹115 max pain and the ₹114-₹120 open-interest concentration are the key levels to monitor. The next major read-through will come from quarterly disclosures that show any effect on margins and credit growth.
Source: IndiaIPO, 12 Oct 2026
Not investment advice. For informational purposes only.