State Bank of India gains 5.2 per cent

The stock was the largest gainer among Sensex companies and rose 5.2 per cent to Rs 2,318.55, after the state-run bank entered into an agreement with T Rowe Price under which the bank will sell 6.5 per cent holding each in UTI Asset Management Company and UTI Trustee Company.

After the sale its holding would be reduced to 18.5 per cent. Last week, the bank announced reduction in interest rates on deposits by 25-50 basis points for a few maturities. The cut in deposit rates will bring down the cost of funds.