Before June, Bank Nifty was parked around ₹56,000 after weeks of consolidation. On 6 June 2025, the RBI surprised markets with a 50 bps repo rate cut (to 5.5%) and a 100 bps CRR cut (to 3%), injecting roughly ₹2.5 lakh crore of liquidity into the system. By 9 June, Bank Nifty surged past ₹57,000, closing at ₹57,049.50, a fresh all‑time high.
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Key numbers at a glance
| Metric | Value |
| Repo rate (post‑cut) | 5.5% |
| CRR | 3% (cut by 100 bps) |
| Liquidity injected | ₹2.5 lakh crore |
| Bank Nifty closing high | ₹57,049.50 |
| Jump from ₹56,000 range | +~₹1,000 |
| Loan growth target (FY26) | 11–12% (up from 9.8% in May 2025) |
| NIM boost estimate (FY26–27) | +7–12 bps |
| EMI relief (on ₹1 cr home loan) | ≈ ₹3,100/month |
| Liquidity surplus (5 June) | ₹3 tn (from ₹–2.2 tn on 14 Mar) |
Why this matters for banks
- Margin support: CRR reduction frees up ₹2.5 lakh crore of capital. Brokerages expect 7–12 bps improvement in margins for midsize and private banks.
- Stronger lending: Fresh loan rates dropped 6 bps, and existing loans dropped 17 bps (Feb–Apr 2025). Credit growth is expected at an 11–12% rate in FY26.
- Excess liquidity: RBI actions turned a ₹2.2 tn deficit in March into a ₹3 tn surplus by early June—nearly ₹5 tn added in three months.
Technical outlook: Is ₹58,500 in sight?
Bank Nifty broke out above its 20‑day trend line with bullish candles. Support lies near ₹56,200–56,900, with resistance around ₹57,500–58,500. Analysts believe there’s room to rally toward ₹58,500–58,900 if it stays above ₹56,000.
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Top banks to watch
| Bank | Reason to watch |
| Kotak Mahindra | Led gains on 9 June (+3.2%) as private bank star |
| AU Small Finance, Canara, Federal, Axis, PNB | Up 1–3% after policy tweak |
| HDFC & Axis | High loan‑to‑deposit ratios; strong margin tailwinds |
| IndusInd & Federal Bank | Mid‑tier banks expected to benefit most |
NBFCs such as Bajaj Finance, Chola and Shriram have also rallied, benefiting from lower rates and solid loan flows.
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Backing the economics
The RBI’s move reflects caution – 6.5% GDP growth in FY25 (slowest in four years) and inflation below 4%. The central bank switched from “accommodative” to “neutral”, signalling readiness to act based on future data.
Why millennials and Gen‑Z should care
- Cheaper EMIs = more disposable income for travel, learning or investing.
- Higher credit access = easier to get that first home or startup loan.
- Stock opportunity = financials could outperform as margins and loans improve.
Final takeaway
The RBI’s double move – 50 bps rate cut and 100 bps CRR slash – was a reset for markets. Bank Nifty breaking ₹57,000 with a realistic path to ₹58,500 signals confidence in growth, better margins, and faster loans. If you’re bullish on credit‑led growth, this could be the defining rally of FY26.
