Nifty PSU Bank hits fresh 19-month low; 8 banks hit respective 5-year lows

Andhra Bank, Union Bank of India, IDBI Bank, Oriental Bank of Commerce, Bank of India and Canara Bank were down more than 3% on the NSE.

Shares of public sector undertaking (PSU) banks continued to be under pressure with the Nifty PSU Bank index hitting a fresh 19-month low as banking stocks once again succumbed to heavy selling pressure in the wake of reports that Union Bank of India has direct credit exposure of about Rs 1.20 billion to companies controlled by jeweler Nirav Modi, and another Rs 1.75 billion to Gitanjali group of companies.

The Nifty PSU Bank index slipped 2.2% to Rs 2,794, hitting its lowest level since August 8, 2016. At 11:15 am; the PSU bank index, the sole loser among sectoral