After the unexpected cut in cash reserve ratio by the Reserve Bank of India, Indian bank stocks hit record highs.

Indian bank stocks rose, with a banking index hitting a record high after the Reserve Bank of India unexpectedly cut the cash reserve ratio by 100 basis points to 3%. The Nifty Bank index briefly rose by 0.8%, erasing a 0.3% decline. The reduction in the reserve requirement is expected to free up more capital for banks to boost lending.