PSU Banks trade weak; PNB, Canara Bank down over 3%

At 09:30 am; the Nifty PSU Bank index, the largest loser among sectoral indices, down 2.2% erases its nearly entire 2.3% gain recorded on Tuesday.

Shares of public sector undertaking (PSU) banks were trading lower by up to 4% on the National Stock Exchange (NSE) on Wednesday after a media report suggested that Punjab National Bank (PNB) told police that it has uncovered additional exposure of about Rs 9.42 billion in connection with a massive alleged fraud.

“The amounts of Rs 9.42 billion were the regular limits sanctioned to Geetanjali Group under consortium lending, and were standard credit exposure at the time of detection of the fraud. Now, this exposure is being added to the existing fraudulent amount. This amount has nothing to do