Mumbai, Dec. 3 -- The Nifty PSU Bank index slipped 3.04% to 8,255.75, reflecting broad weakness across the pack.

Indian Bank led the fall with a 6.14% drop, followed by Punjab National Bank falling 4.35% and Canara Bank declining 4.10%. Bank of India lost 3.69%, while Bank of Baroda was down 3.07% and Union Bank of India weakened 2.70%. Central Bank of India shed 2.65%, Punjab and Sind Bank slipped 2.40% and UCO Bank eased 2.12%. State Bank of India dipped 1.47%, Bank of Maharashtra was lower by 1.46% and Indian Overseas Bank slipped 1.14%.

The sell-off followed a written reply in the Lok Sabha to questions raised by MPs Ranjeet Ranjan and Haris Beeran on whether the Centre plans to lift the FDI cap in PSU banks to 49%. The lawmakers ha...