Public sector bank stocks in India, including Bank of India and Union Bank of India, declined sharply for the seventh time in eight sessions on June 19, 2025, as profit booking continues amid fading post-RBI MPC rally.
Public sector bank (PSU) stocks in India continued to face sharp declines, marking the seventh drop in the last eight trading sessions. The Nifty PSU Bank Index, which tracks 12 major government-owned banks, fell by 2.28% on June 19 to trade at 6,718, with all constituents in the red.
Among the hardest hit was Bank of India, a major public sector lender headquartered in Mumbai, which fell 4% to ₹114.85. Union Bank of India, another government-owned bank based in Mumbai, dropped 3.84% to ₹138.58.
Other notable declines included:
- Canara Bank – down 3% to ₹104.84
- UCO Bank – down 3.07%
- Punjab & Sind Bank – down 2.91%
Earlier this month, PSU bank stocks had seen a rally following the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, where the cash reserve ratio (CRR) was slashed by 100 basis points, sparking optimism in the banking sector. However, that momentum appears to have faded amid ongoing profit booking.
At 12:45 PM on June 19, the Bank Nifty index, which includes private and public sector banks, was also down 0.4%, trading at 55,588. The major laggards in this index were Canara Bank and Punjab National Bank, with declines of 3.08% and 2.51%, respectively.
Market analysts attribute the selling pressure to investors locking in gains after a strong run earlier this month, and caution that volatility may persist in the short term, especially for rate-sensitive banking stocks.
