With its shares losing more than half their value since February, Punjab National Bank (PNB), the country\u2019s second-largest public sector lender, has become smaller than RBL Bank by market capitalisation. What\u2019s more, the erosion in PNB\u2019s market capitalisation also led to its housing finance subsidiary \u2014 PNB Housing Finance \u2014 dislodging the parent. On Wednesday, the market capitalisation of RBL Bank stood at Rs 21,569 crore, which is Rs 713 crore more than that of PNB, Bloomberg data shows. The PNB stock plummeted as much as 12.2% on Wednesday, after the bank reported a larger-than expected quarterly loss of Rs 13,417 crore for three months ended March 2018. While the massive sell-off in the counter took the PNB stock to its lowest level in two years, Wednesday marked its biggest single-day percentage drop in 14 years. The biggest-ever quarterly loss for the bank came on the back of higher provisions for bad loans triggered due to high slippages on account of new RBI guidelines and a few fraud accounts reported in the gems and jewellery segment. The bank has so far recognised half the amount owed in LoUs, made provisions amounting to Rs 7,178.42 crore in respect to the fraudulent transactions. The remaining 50% will be spread over the next three quarters, it said in a statement. RBL Bank, which made its debut on bourses in August 2016, has more than doubled from its issue price of Rs 225 per piece. The private lender reported a better-than expected net profit of Rs 178.12 crore in the three months to March 2018, up 37% from a year ago. Kotak Institutional Equities said in a report, \u201cThe ramifications of the big fraud on the bank, both direct and indirect, has been far higher than initially anticipated. The bank has consumed a lot more capital and there would be further impact on Tier-1 ratio in the ensuing quarters till the balance sheet is stabilized.\u201d As many as five brokerages including Nomura, Credit Suisse, Motilal Oswal Securities and Edelweiss Capital downgraded the stock post Q4 results. Jefferies, which reduced its target price by 27%, expects the bank to post losses even in FY19.