Bank stocks fell as much as 2 per cent today amid concerns over fresh case relating to "fraudulent" issuance of LoUs.
Shares of YES Bank dipped 2.04 per cent, ICICI Bank 1.60 per cent, Federal Bank 1.37 per cent, Bank of Baroda 1.34 per cent, Axis Bank 1.23 per cent, SBI 1.13 per cent and Punjab National Bank 0.70 per cent on BSE.
Among others, Union Bank of India fell 0.83 per cent, Oriental Bank of Commerce 0.35 per cent and Bank of Maharashtra 0.34 per cent.
The BSE bank index fell 0.49 per cent to end at 27,922.91.
In the previous trading session, PSU bank stocks recovered early losses and ended with up to 10 per cent gains.
The CBI has registered a fresh case relating to "fraudulent" issuance of Rs 9 crore of LoUs to Chandri Papers and Allied Products by PNB's Brady House branch, at the centre of a storm over a similar fraud.
An LoU is a service whereby the bank guarantees a customers payment obligation of a specified amount to an overseas bank.
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