Shares of ICICI Bank, Axis Bank and HDFC Bank tumbled on Friday as much as 4.5% in morning trade following accusations that the lenders have indulged in money laundering.
ICICI Bank slumped 4.5% to Rs. 1,060.70, while Axis Bank was down 1.97% to Rs. 1,327.5 on the BSE. Shares of HDFC Bank fell by 2% to Rs. 636.
The BSE bankex index was trading lower by 1.78% at 13,551.22 in the afternoon trade.
The country's three largest private banks were accused on Thursday of indulging in money laundering both within and outside with an online portal claiming that a sting operation conducted by it has revealed a scam.
The portal Cobrapost played the contents of purported video recording of officials of HDFC Bank, ICICI and Axis bank allegedly agreeing to receive unverified sums of cash and put them in their investment schemes and benami accounts in violation of anti-money laundering laws.
However, all the three banks had claimed they conduct their business in compliance with legal and regulatory requirements of the highest standards but said they will investigate the charges.
In the broader market, the BSE benchmark Sensex was quoting at 19,481.48, down 88.96 points.