PNB fraud & more: Nifty PSU Bank sees worst monthly fall in two years

The recent fall has been triggered by the Punjab National Bank fraud, estimated to be worth over Rs 114 billion

With shares of public-sector banks continuing to reel under pressure on Wednesday, the Nifty PSU Bank index posted its sharpest monthly fall in two years.

The Nifty PSU Bank index, the largest loser among sectoral indices, has slipped 16.4 per cent in February. The index fell 2.7 per cent to 2,975 in intra-day trade on Wednesday, but recovered to close nearly one per cent higher at 3,079 levels. By comparison, the Nifty 50 index has lost 4.8 per cent and the Nifty Private Bank index has shed 7.2 per cent in February.

Earlier, in January 2016, the Nifty PSU Bank