Bank related stocks such as State Bank of India, Canara Bank, Union Bank, Bank of India and Punjab National Bank dropped on Friday after the Reserve Bank of India (RBI) has announced revision in priority sector lending guidelines on Thursday. Medium enterprises, social infrastructure and renewable energy will form part of priority sector, in addition to the existing categories, the central bank said.

For agriculture, the distinction between direct and indirect agriculture is dispensed with, the RBI said. A target of 8% of ANBC or credit equivalent amount of off-balance sheet exposure, whichever is higher, has been prescribed for small and marginal farmers within agriculture, to be achieved in a phased manner i.e., 7% by March 2016 and 8% by March 2017, the central bank said.

Bank loans to food and agro processing units will form part of agriculture, the RBI said.

Among PSU bank stocks, Oriental Bank of Commerce dropped the most with fall of 3.69%, followed by Bank of India (3.28%), Indian Bank (2.95%), Union Bank of India (2.29%), Canara Bank (1.61%), Punjab National Bank (1.41%) Andhra Bank (1.37%), Syndicate Bank (0.88%) and Dena Bank (0.79%).

Among private sector banks, Axis Bank declined the most with fall of 2.58%, Yes Bank (2.40%), Federal Bank (2.29%), IndusInd Bank (2.23%), Kotak Mahindra Bank (2.02%) and ICICI Bank ( 0.71%).