Heavy sell-off by funds and retail investors in banking shares following Reserve Bank of India's decision to suck out excess liquidity from the economy placed the segment index down by more than 463 points.
The BSE Bank index was the worst performer among key indices with a steep fall of 463.96 points, or nearly 6.5 per cent at 6,749.78.
Heavy weighted stocks on the Sensex State Bank of India, ICICI Bank and HDFC Bank tumbled, dragging down the benchmark Sensex by 400.06 points at 13,399.43.
Marketmen attributed crash in banking shares to RBI's decision to hike cash reserve ratio of the banks by half a percentage point in stages to tighten liquidity and contain inflation.
The shares of country's largest lender in the public sector, State Bank of India fell by a whopping Rs 110.75, or 8.18 per cent at Rs 1242.75 after dipping to Rs 1,230 while Canara Bank by Rs 24.40 at Rs 279.10.
Other state-run banking majors such as Oriental Bank of Commerce by Rs 10.95 at Rs 235.35, Bank of Baroda by Rs 22.20 at Rs 239.15 and Union Bank of India by Rs 7.70 at Rs 120.25.
Banking giants in the private sector -- ICICI Bank plunged by Rs 57.30 at Rs 819.40, HDFC Bank by Rs 51.05 at Rs 1034, UTI Bank by Rs 21.45 at Rs 443.55,and Kotak Mahindra Bank by Rs 8.90 at Rs 380.95.
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