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@article{205262,
        author = {Rishi Raj Banerjee and Dr. Sumita Roy and Dr. Ajay Kumar},
        title = {Impact of RBI Repo Rate Changes on Stock Returns of Selected Indian Private and Public Banking Companies},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {1},
        pages = {5687-5697},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=205262},
        abstract = {The empirical research in the paper attempts to investigate the effect of the RBI repo rate changes on the monthly stock return of six chosen banks of India from the period of February 2015 to December 2025 (N = 131 per bank). The sample includes three public sector banks – SBI, Bank of Baroda, and PNB, along with three private sector banks namely HDFC, ICICI Bank, and Axis Bank chosen by their market capitalisation and representative of the sector. Utilising Pearson Correlation analysis and OLS regression, the findings reveal that there is no linear relationship between changes in repo rate and the monthly stock return in any of the six Indian banks at the 5% significance level (the p-value varies from 0.35 to 0.77; R² < 0.01 for all banks). Instead of interpreting the findings as an implication that monetary policies are irrelevant, this result indicates market efficiency to some extent and, more specifically, semi-strong since the anticipated decision-making processes are priced before official announcement. The sparseness of rate-changing months in the monthly sample adds up. However, when analysed in phases, the result shows that the policy stance affects the medium-term return performance of the banking sector, in which accommodative phases are associated with recovering periods, whereas the tightening phases vary by the ownership type and asset dynamics. In support of this, an additional survey was conducted with investors (N=29) regarding repo rates changes and found a 62%-point difference in awareness versus actual behavioural changes of 75.9% versus 13.8%. The paper highlights the need to use event study approach and panel techniques in the analysis instead of OLS.},
        keywords = {Monetary Policy Transmission, RBI Repo Rate, Banking Stock Returns, Market Efficiency, Public and Private Sector Banks, India},
        month = {June},
        }