Union Bank and Bank of Baroda, among others, slid as much as 7% following weak third-quarter earnings reports, with PSU Bank the largest sectoral decliner on the Nifty 50.

Indian public sector banks, such as Union Bank, Bank of Baroda, and others, saw their stocks decline by up to 7% due to weak third-quarter (Q3) financial updates. The Nifty PSU Bank index, which tracks the performance of these banks, was the top sectoral laggard on the Mumbai stock exchange. The decline was largely attributed to concerns over asset quality, provisioning, and net interest margins. Union Bank, for instance, reported a net loss of ₹4,143 crore in Q3, led by higher provisions for bad loans and a decline in net interest income. Similarly, Bank of Baroda reported a net loss of ₹3,674 crore, driven by a significant increase in provisioning for bad loans. The sector’s weak Q3 performance has led analysts to revise their earnings estimates downward, which is likely to weigh on the stock prices of these banks. As a result, investors are likely to remain bearish on these banks in the near term.