Bank Nifty today news: the banking index closed 338.65 points, or 0.61%, lower at 54,918 on Monday, October 12, 2026, and it was the single biggest weight on the benchmarks. The trigger was the Reserve Bank of India tightening a rule on how much cash banks have to park with it every day.
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Bank Nifty Today News: How October 12 Played Out
The closing level comes from TrendRipperX market data. At its worst, the index was down 518 points, or 0.94%, at an intraday low of 54,738.35, Fortune India reported.
By mid-session not one of the 14 constituents was in the green, according to CNBC-TV18. Some of that loss was clawed back before the close.
It wasn’t just banks. The Sensex fell 547.65 points to 71,924.68 and the Nifty 50 lost 157.10 points to 22,363.35. Our Sensex and Nifty wrap for October 12 has the full session.
State-Run Lenders Took the Biggest Hit
PSU banks fell hardest. The Nifty PSU Bank index slid 1.43% during the session, against a 0.61% drop in the Nifty Private Bank index.
Fortune India reported these intraday moves:
- SBI: down 1.89% to ₹941
- Punjab National Bank: down 1.56% to ₹115.15
- Canara Bank: down 1.28% to ₹118.06
- ICICI Bank: down 1.41% to ₹1,335.90
- Axis Bank: down 0.75% to ₹1,249.60
Keep in mind these are intraday prices, not closing ones. ICICI Bank was also one of the biggest contributors to the Nifty’s fall, per CNBC-TV18’s market live blog.
The CRR Tweak Behind the Selling
On October 9, the RBI raised the minimum daily cash reserve ratio (CRR) maintenance from 90% to 99% of the requirement, effective from the fortnight beginning October 16, 2026, according to the RBI notification.
The CRR itself stays at 3% of deposits. What banks lose is wiggle room. Until now they could drop to 90% of the required balance on some days and top it up later in the fortnight. From here on, they have to hold almost the whole amount every single day.
On top of that, the RBI announced a ₹25,000 crore open market operation (OMO) bond sale for October 13 to soak up surplus liquidity, Business Standard reported. Both moves drain cash from the system.
A Floor Last Seen in 2013
The RBI hasn’t set the daily floor at 99% since July 2013, when it did so in the middle of a currency crisis. That floor was eased to 95% in September 2013 and to 90% in April 2016.
It also comes days after the RBI’s first repo rate hike in roughly two and a half years, announced earlier the same week. Government bond yields rose as the market priced in tighter liquidity.
What This Means for Bank Stocks
Less spare cash can push up short-term funding costs a little. If lenders can’t pass that on quickly, net interest margins take the hit.
Banks that rely more on short-term market borrowing usually feel this sort of change first, which may be why PSU banks lagged their private peers.
The RBI wants the overnight call rate closer to the repo rate, and it wants rupee-funded bets against the currency to cost more. How banks come out of this depends on how long the tight stance lasts and what happens to deposit rates.
If you trade Bank Nifty, two dates matter now: the October 13 OMO and the new fortnight starting October 16. Our options trading for beginners guide explains how index options tend to react around events like these.
There’s more daily coverage on our Stock Market Today India hub.
Sources: CNBC-TV18, Fortune India, Business Standard, RBI, TrendRipperX. Figures as reported on October 12, 2026. This is news coverage, not investment advice.
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