IDBI Bank (down 2.66%), Bank of India (down 1.9%), HDFC Bank (down 1.83%), Federal Bank (down 1.56%), Bank of Baroda (down 1.15%), Union Bank of India (down 1.04%), Punjab National Bank (down 0.98%), Kotak Mahindra Bank (down 0.89%), ICICI Bank (down 0.73%), IndusInd Bank (down 0.64%), State Bank of India (down 0.6%), Yes Bank (down 0.33%), Axis Bank (down 0.1%) and Canara Bank (down 0.09%), edged lower.

The BSE Bankex was down 1.18% at 12,121.10. It underperformed the Sensex, which was down 0.93% at 17,357.99.

The BSE Bankex had outperformed the market over the past one month until 6 July 2012, gaining 9.33% compared with the Sensex's 6.48% rise. The index had also outperformed the market in past one quarter, rising 2.85% as against 0.20% rise in the Sensex.

The Reserve Bank of India (RBI) has expressed concern over slow deposit growth in a meeting with bankers, Alok Misra, chairman of the Indian Banks Association, was quoted by media as saying today, 9 July 2012.

According to reports, bankers met the RBI Deputy Governor, Subir Gokarn, ahead of the monetary policy review on 31 July 2012 to give their views on macroeconomic parameters.

Reports suggested that deposits at domestic banks grew 14.3% in the year to 15 June 2012, compared with 18.3% in the same period a year earlier. Lenders also discussed measures to boost liquidity going forward, reports added.

RBI reportedly projects deposit growth at 16% for banks in 2012-13.