State Bank Option Costs Near 10-Month Low Before RBI Decision

The cost of protection against swings in State Bank of India shares neared a 10-month low amid expectations the central bank won’t deal a surprise at its policy meeting Tuesday.

At-the-money option costs in the nation’s largest lender were at 27.74, according to data available at 4:06 p.m. in Mumbai. That’s close to a level last seen in January, before the Reserve Bank of India cut lending rates by 25 basis points in an unscheduled move. Central bank Governor Raghuram Rajan has since lowered borrowing costs by a further 100 basis points. All 47 economists in a Bloomberg survey predict it’ll leave the repurchase rate at 6.75 percent.