India’s Sensex Index Declines; State Bank, ICICI Bank Retreat
This article is for subscribers only.
India’s benchmark stock index fell. Lenders led declines amid concern that competition for funds will increase costs and lower loan profitability.
State Bank of India, the nation’s biggest lender, dropped to a seven-day low after increasing the rate it pays customers for deposits by as much as 1.5 percentage points. A wider gap between lending and deposit rates may reduce lenders’ earnings growth, Macquarie Group Ltd. wrote in a note to investors. ICICI Bank Ltd. dropped the most in more than six months.