Bank stocks will be the biggest beneficiaries of Prime Minster Narendra Modi’s move to slash the corporate tax rate to among the lowest in Asia, according to K.R. Choksey Shares and Securities.

“Most of the bank stocks are in the higher tax bracket and will see improvement in earnings" said Deven Choksey, Managing Director at the company in Mumbai.

Lenders including HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank would benefit the most as they are paying more than 30 per cent in taxes, he added.

Taxes on domestic companies will be slashed to 22 per cent from 30 per cent, Finance Minister Nirmala Sitharaman said Friday. The effective new rate will be 25.2 per cent, including all additional levies and is applicable only for companies.

Lenders comprise four of the top 10 firms ranked on effective tax rates for latest financial year, according to data compiled by Bloomberg.

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