SBI slips 2% on downgrade report

State Bank of India (SBI) on Friday declined nearly two per cent in the first half of trading on the Bombay Stock Exchange amid a media report that the Reserve Bank of India had downgraded the country's largest lender, as well as overall decline in stock markets.

Shares of SBI plunged 1.8 per cent to Rs 3,117.50 on the BSE, which was down over 300 points. Similarly, the scrip was trading 1.83 per cent lower at Rs 3,117.95 on the National Stock Exchange, also trading down.

According to a newspaper report, RBI downgraded SBI from 'B' to 'B-', following an inspection of the bank's books for the financial year ended March 2009.

The rating is based on the six parameters known as CAMELS (capital, asset quality, management, earnings, liquidity, and systems and controls), the report added.

Meanwhile, the 30-share benchmark Sensex was trading at 20,298.88, down 290.21 points from previous close.