A cashier (L) counts currency notes as customers wait inside a bank in Hyderabad (Reuters)
The Bank Nifty
fell as much as 2 per cent to its lowest since October, heading towards a sixth consecutive losing session, as part of a rout in emerging markets.
Banks have been among the worst hit this week after the Reserve Bank of India unexpectedly raised interest rates.
Falls were led by ICICI Bank, which lost 2 per cent, and HDFC Bank, which was down 1.6 per cent.
The Nifty was down 1 percent.