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
B RBI’s three-pronged liquidity strategy, including ₹1.5 trillion liquidity infusion
C Government’s approval of higher dividend payouts for banks
D Merger of PSU banks with private banks
E Reduction in interest rates for home loans
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