9 Indian banks have reported cumulative net loss of Rs 14,000 crore

The banking sector hit a new low after India’s third state-run bank, Punjab National Bank (PSB), posted biggest net loss in India's banking history at Rs 5,367 crore.

Not only PSB, Bank of Baroda too posted a quarterly loss of Rs 3,230 crore, while Syndicate Bank reported losses of Rs 2,158 crore.

Now, total losses of nine out of 18 state-run banks that have posted their March earnings till May 17 stand at Rs 14,808 crore.

"For PSU banks, the private banks, NBFCs are taking their market share away so I am not sure what value they have or what value I should given them anymore. They are just really like 'zombie banks'," Andrew Holland, CEO, Ambit Investment Advisors, told ET.

"I think this will to continue to be a problem because there are too many problems within the banking sector which are not going away," he cautioned.

The PSU banking sector has been the biggest drag on the market so far this month with the Nifty PSU Bank index slumping 6 per cent in the past five days.

Meanwhile, State Bank of India’s result is yet to be declared.