Bank stocks continue to fall amid concerns over PNB fraud, many hit 1 year low

Bank stocks continued to face selling pressure on Monday, with many hitting their 52-week lows amid concerns over the alleged Rs 11,400 crore PNB fraud case involving billionaire diamantaire Nirav Modi. Shares of UCO Bank plunged 11.26%, those of Union Bank of India – 10.94%, Allahabad Bank – 10.77%, Bank of Baroda – 9.28%, Syndicate Bank – 8.96% and Bank of Maharashtra – 7.33% on the Bombay Stock Exchange. Among others, State Bank of India lost 5.57%, Corporation Bank 3.32% and Axis Bank 1.71%.

The Nifty PSU bank index was trading lower by 7.18% at 3035.70 on Monday afternoon.

Almost all public sector lenders saw prices of their stocks tumble last week after the alleged Punjab National Bank fraud came to light.