Banking shares under pressure; Yes Bank dips 7%

Oriental Bank, Union Bank, Punjab National Bank, Bank of India, Allahabad Bank and Bank of Baroda are down 5%-7%.

Banking shares are under pressure falling by up to 7% on the National Stock Exchange (NSE) in noon deal trade.

Yes Bank, Oriental Bank of Commerce, Union Bank of India, Punjab National Bank, Allahabad Bank, Bank of India and Bank of Baroda are down between 5%-7% on the NSE.

Canara Bank, Bank of India, IDI Bank, Andhra Bank, Syndicate Bank, State Bank of India, Axis Bank, Indusind Bank, ICICI Bank and Kotak Mahindra Bank are down in the range of 4% to 5%.

At 03:08 PM, Bank Nifty was down 2.4% or 446 points at 18,257 compared to 1.5% fall in the CNX Nifty. In past three trading sessions, the banking index has fallen 3% against 1.3% decline in the benchmark index.

After granting in-principle approval to eleven applicants for payments banks, Reserve Bank of India (RBI) governor Raghuram Rajan today said licences for small finance banks will be announced next month.

Payments banks can accept deposits of up to Rs 1 lakh and can offer current and savings account deposits. They can also issue debit cards and offer internet banking. But they are not allowed to lend or issue credit cards. CLICK HERE TO READ FULL REPORT.