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Banking index slumps ahead of policy review

April 19, 2010

The BSE Banking Index closed 0.34 percent lower on Monday in a broader market that closed 1.08 percent down at 17,400 points.

Top lenders State Bank of India and ICICI Bank fell 0.7 percent and 0.2 percent respectively, a day ahead of the Reserve Bank of India (RBI) policy review.

A Reuters survey last week showed most economists expected the RBI to increase its key short-term borrowing and lending rates by at least 25 basis points.

Other stocks which led the decline were Oriental Bank, down 1.8 percent, Karnataka Bank which fell 2.8 percent lower, and Canara Bank, which dropped 2.5 percent.

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