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    Question

    What was the key reason behind the surge in banking

    stocks such as PNB, Axis Bank, and HDFC Bank following RBI’s announcement?
    A Increase in CRR (Cash Reserve Ratio) by RBI Correct Answer Incorrect Answer
    B RBI’s three-pronged liquidity strategy, including ₹1.5 trillion liquidity infusion Correct Answer Incorrect Answer
    C Government’s approval of higher dividend payouts for banks Correct Answer Incorrect Answer
    D Merger of PSU banks with private banks Correct Answer Incorrect Answer
    E Reduction in interest rates for home loans Correct Answer Incorrect Answer

    Solution

    The RBI’s three-pronged liquidity strategy, including ₹1.5 trillion liquidity infusion, boosted investor confidence, leading to a surge in banking stocks.

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