Nifty PSU Banks fall 3% after govt notifies NPA ordinance

All PSU banks except Canara Bank was trading in red after the formal announcement came through

Nifty PSU Bank index pared gains to fall as much as 3.1% to 3,696 in the afternoon session after the index rose to its two-year high of 3,921 in morning deals as President Pranab Mukherjee signed NPA ordinance to amend the Banking Regulations Act to give more power to the Reserve Bank of India (RBI) to intervene on behalf of banks.
 
At 2:00 pm, Nifty PSU Bank index, the biggest laggard among sectoral indices, was down 1.8% at 3,748. On comparison, Nifty Private Bank index was up 0.44%, and Nifty Bank was trading 0.5% lower.
 
All PSU banks