SBI stock gains 4.5% on savings rate cut; mcap up Rs 11,525 cr

Shares of State Bank of India

today closed with 4.5 per cent gain after it cut interest rate

on savings bank account deposits up to Rs 1 crore by 0.5 per

cent to 3.5 per cent.

The scrip soared 4.46 per cent to settle at Rs 312.55 on

BSE. During the day, it had jumped 4.91 per cent to Rs 313.90.

On NSE, the stock rose by 4.48 per cent to close at Rs

312.50.

It was the top gainer on both the key indices during the

day.

The company's market valuation also rose by Rs 11,524.74

crore on BSE to Rs 2,69,794.74 crore.

On the volume front, 34.17 lakh shares of the company

were traded on BSE and over 4 crore shares changed hands at

NSE during the day.

The bank's decision to lower the rate came two days ahead

of the Reserve Banks's monetary policy review meeting and is

likely to trigger rate war among peers.

SBI's savings bank account base is about Rs 9 lakh crore.

The country's largest lender will however continue to pay

4 per cent interest on savings bank accounts with deposits of

above Rs 1 crore, it said in a statement.

The two-tier savings bank account interest rate comes

into effect from today.

"Country s largest PSU bank s interest rate cut decision

attracted investors to the banking stocks due to an

expectation of more peers to follow the trend," said Vinod

Nair, Head of Research, Geojit Financial Services Ltd.

Buying was also seen in other bank stocks, with Bank of

Baroda rising 2.54 per cent, PNB (2.04 pc), ICICI Bank (2.01

pc) and Kotak Mahindra Bank (1.57 pc).

The BSE bank index gained 1.30 per cent to end at

28,386.54.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)