The Nifty PSU Bank index was trading 0.67 per cent down at 3,081 around 12.10 pm (IST). Benchmark Nifty50 index was marginally up by 0.05 per cent at 9,984, while Sensex was 0.06 per cent up at 31,834.
Punjab National Bank (down 0.73 per cent), Bank of Baroda (down 0.63 per cent), Allahabad Bank (down 0.59 per cent), State Bank of India (down 0.45 per cent) and Canara Bank (down 0.32 per cent) were also losing in the trade.
Indian Bank (up 0.43 per cent) and Union Bank of India (up 0.23 per cent) were the only two stocks that were trading in the green around that time.
The overall market sentimet appeared cautious as selling in oil, IT, PSU banks and realty stocks played the damp squib.
On the NSE, 940 stocks were advancing, compared with 671 stocks declining and 369 stocks remaining unchanged.