According to market sources, the lower YTM will technically provide SBI an edge over the other banks with its profit going up by at least Rs 400 crore, while BoB would benefit up to Rs 200 crore.

Although UTI was said to have made an attempt to absorb the sales at the SBI counter, the stock continued to trade below the crucial Rs 300 barrier between Rs 293.50 and Rs 299.50, the intra-day's low and high respectively. It finally closed at Rs 294.75, registering a net loss of 2.01 per cent over the previous close of Rs 301 on the BSE. On the NSE, the stock further fell by 3.37 per cent to close at Rs 291.30. However, SBI continued to betraded on a firm note at Rs 295/295.75 on the kerb market.

Despite the fall in the value of the shares, the stock accounted for a huge turnover of Rs 296 crore on the local bourses. ``Market requires the time and expertise to understand the implication of the crucial policy decision. Reaction to such decisions historically flows in only after a day or two,'' a market analyst with an FII brokerage said. Market players echoed this opinion, while the technical corrections on account of the closing of the trading cycle on the NSE continued to play a vital role in the erosion of the stock values of banking representatives.

BoB opened on a weak note at Rs 117.90 against the previous close of Rs 125.10 and finally closed at Rs 127.40 to register a net gain of 1.84 per cent. The Bank of India counter hogged the limelight on the BSE owing to FII buying and the stock gained 9.95 per cent to close at Rs 56.35. On the NSE, too, the stock made a smart recovery of over 9 per cent to close at Rs 55.75.