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News Topical, Digital Desk : Heavy Stock Crash: Following a statement issued by the Finance Ministry, shares of public sector banks fell on December 3, 2025. The Finance Ministry clarified that the government has no proposal to increase the foreign investment (FDI) limit in public sector banks from 20 percent to 49 percent. Around 10:10 a.m. on Wednesday, the Nifty PSU Bank index fell nearly 2 percent to 8,373.50, putting pressure on investor sentiment.
What did the government say? (Finance Ministry Clarification)
In a written reply in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary denied all reports claiming that the government was considering increasing the FDI limit in PSU banks. Earlier in October, a Reuters report had said that the government could consider increasing the FDI limit to 49 percent. Now, after the ministry's statement, it has become clear that no such proposal exists.
Nifty PSU Bank Index falls for the second day The Nifty PSU Bank Index continued its decline for the second day. The index also declined yesterday because Pankaj Chaudhary had said in the Lok Sabha that the government does not have any proposal for merger or consolidation of public sector banks.
Shares of these banks fell the most (PSU Bank Stocks) Talking about the top losers, Indian Bank shares fell the most and were trading at Rs 826.20, down about 4 percent. Punjab National Bank (PNB) shares were also down about 3 percent. Shares of Bank of India fell more than 2 percent, while Canara Bank, Punjab & Sind Bank, Central Bank of India, Bank of Maharashtra, Bank of Baroda, and UCO Bank were trading with declines of around 2 percent. Shares of Indian Overseas Bank (IOB) and State Bank of India (SBI) were also down around 1 percent.
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