Psu banks down 50% +

Why PSU banks fall 50-60% ???

One reason can be attributed to bad NPAs and due to stringent norms introduced recently by RBI in terms of disclosures required more loans are going to add in list of NPAs So,more provisions need to set aside.

One more reason is RBI want banks to pass the interest rate reduction to clients for any decrease in repo rates by RBI. Now Banks are reducing deposit rates but not lending rate and if this happens banks margins will get hit.

Above two reasons play a major rule in the recent carnage in PSU banks but global financials also are doing very bad.