2/4/2026, 10:39:02 am

Bank stocks plummet 4% as RBI cracks down on rupee speculation

Bank stocks declined sharply on April 2, dragging the Nifty Bank index down 2.6%. Private sector lenders fell 2.1%, while PSU banks dropped 3.2%. The sell-off comes amid tighter RBI regulations aimed at curbing corporate arbitrage, which could increase provisioning pressure. Jefferies analysts warned these changes may negatively impact bank profitability going forward.