PSBs under pressure: Public banks stocks decline 16-60% since Nov

In a matter of just six months, investors, including the government, have lost Rs 1.29 trillion, measured by the value of their holdings. The combined market capitalisation of 21 public sector banks (PSBs) has fallen from Rs 5.48 trillion on November 17 last year to Rs 4.19 trillion currently, mainly due to worries over increase in non-performing assets (NPAs) and the negative sentiment post Nirav Modi fraud at Punjab National Bank (PNB). To some extent, the surge in bond yields on government securities (G-secs), which have impacted the treasury profit of banks, has also played a role.

Since November and now,