PSU banks trade weak after RBI's new NPA resolution

Nifty PSU Bank index, the largest loser among sectoral indices, was down 2% at 3,402, as compared to 0.5% decline each in Nifty Bank and Nifty Private Bank index at 09:47 AM.

Banking shares mainly public sector undertaking (PSU) banks trading weak with Nifty PSU Bank index falling 2% after the Reserve Bank of India (RBI) on Monday after market hours came out with a new non performing assets (NPA) resolution.

In the RBI’s new rules, banks would have to harmonise the treatment of specific accounts across their books. If one bank has treated a particular account as an NPA, other lenders on the same account will have to treat it as an NPA in their books as well.CLICK HERE TO READ FULL REPORT

At 09:47 am; the