Shares of state-run lenders fell on Monday after they were penalised by the RBI over non-compliance of number of violations. The Nifty PSU Bank index plummeted over 5 per cent in intraday trade. The sectoral index touched fell to 2,519.65, which also marked its 52-week low during the intraday trade. The losses on the 12-member bank index were led by Indian Bank which nosedived over 15 per cent in intraday deals. SBI or State Bank of India, the country's largest lender, fell as much as 5 per cent. At 3:05 pm, the Nifty PSU Bank index traded at 2,603.55, down 1.96 per cent.

Last week, SBI reported a net profit of Rs. 2,312.20 crore in April-June period compared with loss of Rs. 4,875.85 crore in the same quarter last year. However, the bank missed analysts' estimates, who had expected the lender to post a profit of Rs. 4,083 crore.

Meanwhile, Sensex fell as much as 701 points to an intraday low of 36,443.41 and the NSE Nifty 50 Index slumped below its 10,800. In afternoon trade, the benchmark Sensex was trading at 36,689 while Nifty was down 143 points at 10,853.