RBI’s Rs 2.5 lakh crore masterstroke! Why bank stocks are smiling despite NIM pain

RBI’s 50 bps rate cut pressured bank margins, but a 100 bps CRR cut added Rs 2.5L cr liquidity, boosting lending capacity.

Nifty Bank rose 1.5%, with private banks and NBFCs outperforming due to lower rates.

Combined cuts may improve borrowing and credit growth if banks pass benefits to customers.

Margin pressure may ease in H2FY26; top bank picks include HDFC, ICICI, Kotak, and City Union.