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With consumer prices hitting high, global energy costs edging ever higher, and global unrest, it becomes clear inflation is not transitory. The Government always seeks to control inflation by influencing interest rates. Increasing the interest rates are aimed at reducing demand in the economy. Conversely, though, companies and consumers will both reduce their spending, which will result in lower earnings and falling stock prices. Furthermore, there are variations in the correlation and influence between interest rates and bank stock values throughout time. The purpose of this study is to look into how interest rates affect both Bank Private Nifty Index and the Bank PSU Nifty Index. The study's reference period spans April 2019 through March 2023. The Granger Causality test and the Johansen co-integration rank test, respectively, were used to analyze the study's both immediate and long run analyses. According to the study's findings, interest rates & bank stock index returns have a substantial long-term link.