Banking stocks slid nearly 3 per cent in early deals on Tuesday on the Bombay Stock Exchange, in line with sulking global markets, which lost ground after the Royal Bank of Scotland revealed a $ 41 billion loss in 2008 the biggest ever in UK's history.
The BSE banking index fell 144.64 points, or almost 3 per cent, to 4,844.48 points, with all the 18 components of the sectoral indices trading in the negative zone.
State Bank of India, the nation's largest lender, dropped by 3.54 per cent at Rs 1,106.80. Over 1.62 lakh shares changed hands on the bourse in early trade.
Shares of ICICI Bank, largest lender in the private sector, also faced selling pressure and fell 4.32 per cent to Rs 395.20. Over, 4.23 lakh shares got transacted.
HDFC Bank moved down 3.45 per cent to Rs 907.50, while Axis Bank slipped by 3.25 per cent at Rs 424.10.
Stock brokers said selling pressure gathered momentum on the domestic bourses after the Royal Bank of Scotland unveiled $ 41.05 billion of loss in 2008, triggering expectations of disappointing quarter earnings by major banks.
Other major losers in the banking sector were Punjab National Bank by 1.92 per cent at Rs 446.95, Yes Bank by 2.77 per cent at Rs 71.95, Union Bank by 1.04 per cent at Rs 152.45 and Bank of India by 0.86 per cent at Rs 252.90.