The SBI counter, which saw substantial trading volumes, lost 4.4 per cent to close at Rs 176.10. The scrip had touched an intra-day low of Rs 170 on the BSE. On the NSE, the scrip closed at Rs 174.85, a loss of 5.44 per cent.

In the GDR market, too, the SBI counter was hammered. The SBI GDR was down by $0.25 to $0.30 to trade at $10. Over the last three days, the SBI scrip has seen a sharp and steady fall from Rs 200 to Tuesday's low of Rs 176.10. In kerb deals in Mumbai, the SBI scrip quoted much lower at Rs 175.10.

Tuesday's level was the worst for the banking giant, falling below the December 1995 low of Rs 178. Over the last few sessions, the market perception towards the banking andfinancial sector has turned negative with most FIIs trying to reduce their exposure to these counters. The three financial institions -- IDBI, IFCI, ICICI -- are trading at their all-time lows, following fears of growing non-performing asset levels.

On Tuesday, these institutions saw further erosion in their values. All the three hit a new low on Tuesday -- IFCI Rs 18.60, IDBI Rs 43.50 and ICICI Rs 45.55.

The fear has spread to relatively stronger banking counters like the Corporation Bank, which dropped to Rs 98.60.