Shares of Federal Bank went down by 1.81 per cent, Karnataka Bank declined by 1.36 per cent, Central Bank of India dipped 1.36 per cent, Indusind Bank lost 1.35 per cent and Axis Bank (0.83 per cent) on BSE.
The BSE Bankex index plunged 28.29 points, or 0.11 per cent, to 26774.50 today.
Bank stocks had fallen up to 3 per cent in the previous session also.
Facing mounting pressure from farmers and opposition parties, the Karnataka government today announced crop loan waiver of up to Rs 50,000 per farmer, that will cost Rs 8,165 crore to the state exchequer.
On Monday, Punjab had announced total waiver of crop loans up to Rs 2 lakh of small and marginal farmers, and a flat Rs 2 lakh relief for all marginal farmers, irrespective of the loan amount.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)