SBI gains on hopes for improving asset quality

Reuters Market Eye - Shares in State Bank of India (SBI) ended 1.6 percent after state-run rivals Punjab National Bank and Union Bank of India Ltd reported a sequential improvement in asset quality for the January-March quarter.

The results are raising expectations that SBI, India's biggest state-run bank, also saw flat or improving non-performing assets in the previous quarter.

Both Punjab National and Union Bank have a strong positive correlation with SBI's share prices.

PNB shares ended up 4.6 percent, while Union Bank shares rise 1.4 percent.

(Reporting by Abhishek Vishnoi)