Banks such as IndusInd Bank, AU Small Finance Bank, and Federal Bank are likely to gain the most from the move.
However, the CRR cut will also support deposit-growth-constrained larger banks like Axis Bank and HDFC Bank, Nomura added.
Goldman Sachs said the key beneficiaries of the Reserve Bank of India’s (RBI) policy move include large banks such as Axis Bank and HDFC Bank.
NBFCs with a higher proportion of fixed-rate assets, such as SBI Card, Shriram Finance, and Chola Finance, are also expected to benefit from the RBI’s move.
Additionally, lenders with a more balanced mix of fixed and floating rate assets and liabilities, including AU Small Finance Bank, IndusInd Bank, and IDFC First Bank, are likely to see positive impact as well.
Bernstein said the announcements are seen as a major positive for banks compared to NBFCs.
Citi mentioned that the move is positive for banks where deposit growth is closely monitored, citing HDFC Bank and Axis Bank as key beneficiaries.
Liquidity easing via CRR cuts and sustained liquidity support could improve credit flow into NBFCs like Shriram Finance.
UBS said banks requiring greater liquidity, such as AU Small Finance Bank, HDFC Bank, and Axis Bank, will benefit from the RBI’s measures.
On NBFCs, UBS added that a sustained decline in PSU bond yields could result in an additional 10 basis points benefit in the cost of funds for companies like PFC and REC.
NBFCs with a higher share of bank borrowings, such as Chola and M&M Finance, are also expected to benefit more from improved liquidity conditions.
The RBI monetary policy committee (MPC) on June 6 provided a huge boost to growth by a larger than expected rate cut and a totally unexpected and historically large cash reserve ratio cut.
The central bank has delivered a bold 50-basis points (bps) repo rate cut, the third consecutive reduction since February, bringing it down to 5.5%.
Coupled with a 100 bps cut in the cash reserve ratio (CRR) to 3%, the move will unleash ₹2.5 lakh crore of lendable resources into the banking system.
