Public sector banking stocks faced a tough crowd today, with the Nifty PSU Bank index sinking 4.30% to a six-week low of 6,334. The weekend’s business updates from state-owned lenders failed to spark any optimism, leaving investors unimpressed and dumping shares across the board. Union Bank of India took the biggest hit, diving 8% after revealing a lackluster performance. Deposits edged up just 3.8% year-on-year to ₹12.16 lakh crore in the December quarter, while advances crawled up by 5.9% to ₹9.49 lakh crore. Sequentially, deposits even dipped by 2%, further denting sentiment. Other players like Bank of Baroda and UCO Bank managed to post more respectable numbers. Bank of Baroda reported a 9.23% rise in domestic deposits and an 11.82% bump in global deposits, while UCO Bank showcased a robust 16.20% year-on-year growth in total advances. Yet, these weren’t enough to calm nerves, with losses between 4% and 6% hitting most PSU bank stocks, from Canara Bank to Punjab National Bank. Even the Bank of India, which delivered double-digit growth in both gross advances (up 15.31%) and total deposits (up 12.29%), couldn’t escape the sell-off. Its total business climbed 13.63% year-on-year to ₹14.46 lakh crore, but investors remained hesitant. Today’s drop marks the steepest slide for the Nifty PSU Bank index since June 4, when it plunged over 15%. With rising concerns about sequential deposit declines and relatively muted year-on-year growth, the market’s mood seems firmly bearish on this sector for now.