Indian Bank leads PSU bank losses as Nifty PSU Bank index drops 5% after FDI clarity

• Nifty PSU Bank index fell 5.5% from its November 26 high of 8,665.70.
• Indian Bank led losses among state-run lenders, with its shares down nearly 5% from recent highs and 3% today.
• The decline follows the Finance Ministry's clarification that the FDI limit in PSU banks remains at 20%, not 49%.
• All state-run bank shares in the Nifty PSU Bank index are trading lower.

Why It Matters: FDI cap clarification impacts PSU bank stock performance.