27 Mar , 2026 By : Debdeep Gupta
Bank shares on Friday snapped a two-day gaining streak, with the sectoral index falling around 2 percent amid profit booking and a rise in bond yields.
The Bank Nifty, which had gained 4.37 percent in the previous two sessions, declined up to 2 percent during the day on selling pressure.
All 14 constituents of the index were trading in the red. Canara Bank was the top laggard, falling up to 4 percent. Bank of Baroda and Punjab National Bank declined 3.78 percent and 3.29 percent, respectively.
HDFC Bank also reversed its two-day gains and fell more than 2 percent.
The decline in HDFC Bank came amid reports that the resignation of its former chairman Atanu Chakraborty last week followed differences with chief executive Sashidhar Jagdishan, according to a Financial Times report citing sources. Chakraborty had opposed extending Jagdishan’s tenure, while a majority of the board supported it, the report said.
The stock had fallen about 12 percent after Chakraborty stepped down as part-time chairman. In his resignation letter, he had cited "certain happenings and practices within the bank" that were "not in congruence" with his personal values and ethics.
State-owned lenders led the decline on concerns that rising crude prices could push up borrowing costs and bond yields, thereby impacting treasury income. Higher bond yields typically reduce the value of banks’ bond holdings, leading to lower gains from their treasury portfolios.
The Nifty PSU Bank index fell up to 3 percent, with all 12 constituents trading lower. Bank of Baroda was among the top losers, down more than 3 percent.
The Nifty Private Bank index declined about 1.5 percent, with all 10 constituents in the red. IndusInd Bank and HDFC Bank were among the key laggards, each falling more than 2 percent.
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