New Delhi, Jul 27 (PTI) Bank stocks tumbled up to 6 per cent on Monday on worries over their asset quality and were the major drag for the broader market.

ICICI Bank tanked 6.11 per cent, HDFC Bank declined 3.55 per cent, Bandhan Bank 3.25 per cent, Axis Bank 3.25 per cent, IndusInd Bank 3.03 per cent and City Union Bank 2.78 per cent on the BSE.

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Shares of Federal Bank dipped 2.61 per cent, SBI 2.48 per cent, RBL Bank 2.27 per cent and Kotak Mahindra Bank 2.03 per cent.

The BSE bank index tumbled 3.58 per cent.

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The RBI's Financial Stability Report, released on Friday, said gross non-performing assets of banks may jump to 12.5 per cent by the end of this fiscal under the baseline scenario, from 8.5 per cent in March 2020.

The baseline scenario is derived from the forecasted values of macroeconomic variables such as GDP growth, combined gross fiscal deficit-to-GDP ratio and CPI inflation among others, the report said.

"Financials led the losses following an RBI report which expected a surge in bad loans this year," said Vinod Nair, Head of Research, Geojit Financial Services.

The 30-share BSE index settled at 37,934.73, a loss of 194.17 points.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)