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)