India's banking shares rally after RBI eases cash, bond holding rules

Last Updated: Wed, Aug 21, 2013 03:50 hrs

MUMBAI, Aug 21 (Reuters) - India's NSE bank index surged 4.7 percent in pre-open trading after the Reserve Bank of India eased cash and bond holding rules for banks on Tuesday.

The RBI relaxed rules on mandatory bond holdings for banks, which would help protect lenders from large mark-to-market losses and said it would buy long-dated government bonds worth 80 billion rupees ($1.3 billion).

State Bank of India Ltd gained 5.5 percent, while ICICI Bank Ltd rose 4.7 percent in pre-open trading. (Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)

More from Sify: