PSU banks under pressure as Union Bank slips to intraday low

Shares of public sector banks witnessed selling pressure on Monday, with Union Bank of India among the notable losers as the broader market decline weighed on banking stocks.

Union Bank of India slipped to an intraday low during the session as traders pared positions amid weakness across financial stocks. The decline came in line with the broader fall in equity markets, where benchmark indices dropped sharply following a surge in global crude oil prices and rising geopolitical tensions.

Other PSU bank stocks also traded lower as investors turned cautious and reduced exposure to rate sensitive sectors. Banking stocks are often among the first to react during periods of market volatility because of their high weightage in benchmark indices and sensitivity to macroeconomic signals.

Market participants said the fall in PSU bank stocks reflected a mix of profit booking and risk aversion as global uncertainties triggered a broad sell off in equities.

Despite the weakness in the session, analysts noted that the long term outlook for public sector banks remains linked to credit growth trends and asset quality improvements. Investors are expected to track macroeconomic developments, interest rate signals and global market cues as volatility continues to influence trading activity.