The NSE Nifty Bank Index, a gauge of 12 lenders, dropped 1.4%, while the NSE Nifty PSU Bank Index — comprising 12 state-owned banks — slid 3%. Punjab National Bank 's 5.6% decline was the most among state lenders, while Syndicate Bank was the lone gainer, rising 2.5%. Here is what some of the analysts are saying: Caution on Merger Candidates Mergers will keep state-run banks "busy in the integration process for a prolonged period and thus help private banks further consolidate their business market share," Emkay Global analysts Anand Dama and Rahul Malani wrote in a note dated Sept. 3. Emkay downgrades Indian Bank to hold from buy, and maintains sell on Punjab National Bank, Canara Bank and Union Bank, citing merger overhang.