Bank Nifty gains after RBI keeps interest rate unchanged

Nifty Bank Index is up after RBI decided to keep repo rate unchanged at 5.5% in its monetary policy meeting today, 1^st October, 2025. At 10:55 a.m. IST, Nifty Bank Index is up by 0.61%. Nifty Private Bank Index is up by 0.69% at this time. Nifty PSU Bank index is down by 0.80%. But this may be because of profit booking in many PSU bank stocks after the gains of the past few days.

Banks gain in a higher interest rate scenario

Banks tend to gain in a higher interest rate scenario. This was seen during the high interest rates that prevailed after the Covid lockdown years. Their net interest margin improved because of higher interest rates. So RBI not cutting down the interest rate today is being considered as a favorable thing for banking stocks.  Net interest margin is the difference between the interest rate that a bank charges from borrowers and the interest rate that it pays to depositors.

RBI raises GDP growth forecast for FY26

RBI has also raised GDP growth forecast for FY 26 to 6.8% from its earlier forecast of 6.5%. Higher GDP growth rate tends to increase demand for loans. Increase in demand for loans is also a positive for banks.

Kotak Bank, ICICI Bank shares among gainers at Nifty 50

Stocks of a number of banks are among top gainers at Nifty 50 at this time. At 10:55 a.m. IST, Kotak Bank’s share price is up by 2.10% at Rs 2028.80. ICICI Bank’s share price is up by 1.59% at Rs 1,369.50. HDFC Bank’s share price is up by 0.98% at Rs 960.35. Nifty 50 index is up by 0.31% at this time.

 Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: RBI, NSE