Magma Fincorp ended with a loss of 4.63 per cent to settle at Rs 69 on the BSE, while Anil Ambani's Reliance Capital plunged by 3.52 per cent to close at Rs 308.50.
Edelweiss Financial Services and J M Financial lost 3.33 per cent each. Muthoot Finance, LIC Housing Finance, L&T Finance Holdings and IDFC ended lower by one to two per cent.
Besides, Indiabulls Housing Finance, Religare Enterprises and Aditya Birla Nuvo also ended in red.
Market analysts attributed the decline in the shares of banking licence aspirants to uncertainty over the names of short-listed candidates.
However, shares of a few companies that applied for a banking licence such as India Infoline, Bajaj Finserv, SREI Infrastructure Finance and IFCI ended on a positive note.
The Bimal Jalan panel which was scrutinising applications for new bank licences submitted its report to the Reserve Bank of India (RBI) yesterday.
The committee, led by former RBI governor Bimal Jalan, held its third and final meeting before submitting its recommendations to the central bank.