PSU banks trade weak; SBI, Bank of Baroda down over 3%

On Thursday, the Reserve Bank of India (RBI) lowered its gross domestic product (GDP) growth forecast for the financial year 2019-20 (FY20) to 5 per cent, from the previously estimated 6.1 per cent.

Shares of public sector banks were trading lower for the second straight day, with Nifty PSU Bank index down 3 per cent on Friday, as investors booked profit on fears of weak economic growth.  The index was ended 2 per cent lower on Thursday.

In comparison, the benchmark Nifty 50 index was down 0.43 per cent at 11,967 at 11:45 am, falling less than 1 per cent in the past two trading days.

In the past three weeks, the Nifty PSU Bank index rallied 10 per cent, as compared to a 1.7 per cent rise in the benchmark