Bank stocks fall after RBI moves to tighten liquidity; Yes Bank down 8.28%

Shares of banks fell on Wednesday after the Reserve Bank of India (RBI) announced fresh measures to drain cash, making access to short-term funds harder.

Yes Bank Ltd  dropped 8.28 per cent, while IndusInd Bank Ltd fell 7.77 per cent.

The RBI on Tuesday lowered the overall limit for borrowing under the daily liquidity adjustment facility (LAF), which offers funds in exchange for collateral, for each bank to 0.5 per cent of deposits from 1 per cent.

The NSE banking index was down 4.38 per cent.

Copyright: Thomson Reuters 2013